The DIFC stands as a premier financial center in the region, hosting over 400 wealth and asset management firms that collectively manage more than $750 billion in assets. This strategic location provides unparalleled access to the extensive private and sovereign capital available in the region.

The DIFC also offers an advanced regulatory framework for digital assets, encompassing investment and crypto tokens. It also features a dedicated Innovation Hub, supporting companies in the fintech, AI, and blockchain sectors.

Recently, there has been a notable and continuous influx of High-Net-Worth Individuals (HNIs) into the UAE. Dubai alone is home to over 72,500 HNWIs and Ultra-High-Net-Worth Individuals (UHNWIs), whose combined wealth exceeds $500 billion. The broader Middle Eastern region boasts over $3.5 trillion in HNWIs wealth and more than $4.8 trillion in financial capital managed by 40 state-owned investors.

The DIFC is witnessing high growth in the alternatives segment. It currently includes 70+ hedge funds, with over 45 of these managing over a billion dollars worldwide. As a result, the DIFC has emerged as one of the world's top ten locations for hedge funds, with ambitions to enter the top five in the near future.

The DIFC has been consistent in attracting family businesses as well, with over 850 family-owned businesses located in the centre, a growth of over 30% in 2024.

By the end of 2024, DIFC reported that the top 120 families and wealthy individuals in the community were managing over USD 1.2 trillion in wealth. The use of Foundations and associated structures also saw a 50+ percentage jump, reaching nearly 700 foundations by the end of 2024.

The Centre in the UAE is a cultural hub, featuring fine dining, retailers, and art galleries. Events like DIFC Art Nights and the Sculpture Park attract artists and enthusiasts. Art Dubai, backed by DIFC, remains the foremost global art event in the Middle East.   

How much does it cost to set up a regulated firm in the DIFC?

The cost of establishing and running a regulated firm in the DIFC can vary, largely depending on the licensed activities that are conducted from the centre. A rule of the thumb is that one would set aside at least US$ 150,000 in Year 1 to cover statutory costs, excluding salaries and discretionary expenses such as marketing and travel. A lot of the costs incurred are paid yearly in advance, and so it is tough to isolate the actual costs of starting the business and running it on an ongoing basis.

 

Let’s break it down. 

The fees paid to the Dubai Financial Services Authority - DFSA. 

The DFSA is responsible for reviewing and approving all applications for financial services. Costs depend on the activities applied for, which puts the applicant in one of five categories.

Generally, there are two components of DFSA fees. One – an application processing fee, and the other, an annual licensing fee.

DFSA Application Fees 

The application fee is a one-time fee paid to the regulator to process the application. It is not refundable in case of rejection or withdrawal of the application. In some cases, when the client withdraws an application, the DFSA may approve keeping the application fees valid for six months, in case of resubmission of the application. 

Application fee varies based on the activities applied for. Under the DFSA Rules, when a firm applies for multiple Financial Service activities in one licence application, the application fee is calculated using the highest single activity fee only — not the sum of all activities.

For instance, in case of a Category 3A Brokerage (Firm A), where possible activities applied for include Dealing in Investments as Agent (US$ 25,000), Arranging Deals in Investments (US$ 15,000) and Advising on Financial Products (US$ 15,000), the application fee payable will US$ 25,000, i.e. the highest activity fee. 

Also, the DFSA may double the application fee for firms with complex structures, cross-border arrangements or novel business models. 

DFSA Annual License Fees

These fees are paid to the DFSA on an annual basis, calculated every calendar year, with the first year being pro-rated. The license fee is usually the same as the application fee, minus monies paid for endorsements, with an amount of US$ 4,000 per additional activity. 

For instance, in the above example, Firm A will pay the DFSA an annual license fee of US$ 25,000 + US$ 8,000, representing two additional activities. 

Here are the DFSA fees associated with major activities:

Core Financial Services

• Accepting Deposits or Providing Credit — US$ 70,000.
• Dealing in Investments as Principal (except Matched Principal) — US$ 40,000.
• Effecting or Carrying Out Contracts of Insurance (non-Captive, non-PCC, non-ISPV) — US$ 40,000.
• Dealing in Investments as Matched Principal — US$ 25,000.
• Dealing in Investments as Agent — US$ 25,000.
• Managing Assets — US$ 25,000.
• Providing Custody — US$ 25,000.

Other Financial Services

• Providing Money Services (issuing Stored Value) — US$ 25,000.
• Managing a Profit Sharing Investment Account — US$ 25,000.
• Providing Trust Services (as trustee of one or more express trusts) — US$ 25,000.
• Acting as Trustee of a Fund — US$ 25,000.
• Administrator of an Employee Money Purchase Scheme — US$ 25,000.
• Insurance Management — US$ 20,000.
• Operating an Employee Money Purchase Scheme — US$ 20,000.

Lower-Risk Advisory & Arranging Activities

• Arranging Deals in Investments — US$ 15,000.
• Advising on Financial Products — US$ 15,000.
• Arranging Custody — US$ 15,000.
• Arranging Credit / Advising on Credit — US$ 15,000.
• Providing Money Services (non-Stored Value) — US$ 15,000.
• Insurance Intermediation — US$ 15,000.
• Providing Trust Services (non-trustee) — US$ 15,000.
• Providing Fund Administration — US$ 15,000.

Specialised Activities

• Operating a Credit Rating Agency — US$ 10,000.
• Managing a Collective Investment Fund:
  • If Credit Fund or non-QIF / non-VC — US$ 10,000.
  • If Venture Capital Funds only — US$ 2,000.
  • If QIFs only (non-VC) — US$ 5,000.
  • If Investment Companies managed by Corporate Directors — US$ 5,000.
• Providing Money Transmission only — US$ 10,000.
• Operating a Crowdfunding Platform — US$ 10,000.

Insurance Structures

• Insurance PCC (core) — US$ 8,000.
• Insurance PCC (per cell) — US$ 1,000.
• Captive Insurer / ISPV — US$ 5,500.

Money Service Advisory

• Arranging or Advising on Money Services — US$ 5,000

DFSA Fees for endorsements

The DFSA charges additional application and annual fees for endorsements on the license. 

• To carry on a Financial Service with or for a Retail Client - US$ 20,000 (Retail Endorsement)
• To conduct Islamic Financial Business - US$ 5,000 (Islamic Finance Endorsement)
• To hold or control Client Assets - US$ 5,000
• To conduct Insurance Intermediation activities in respect of contracts of Long-Term Insurance - US$ 5,000
• To use a Fund Platform - US$ 20,000.

Capital

The DFSA mandates financial service firms to bring in adequate capital to run their operations. There are two main concepts here:

Capital Resources - amount that is devoted to the Firm

Capital Requirements - amount that is held in the bank account of the firm and cannot be used as working capital - it is held to be used in case of a liquidation event. 

Actual capital resources required will depend on the nature, quantum of business and forecasted annual expenditure, as per the financial model of the proposed firm.

Capital waivers may be available to the DIFC branch of a regulated financial institution having its head office in a recognized regulatory jurisdiction.

The DFSA lists out multiple ways of calculating capital, and specifies capital requirements for a firm as the highest of the Base Capital, Risk-Based capital and Expense-Based Capital. 

These figures are calculated using the financial models that we make for the Regulatory Business Plan during the application process and so are mostly unique to the company that applies for the license.

Calculation of capital is a detailed process and involves many factors. We recommend that you contact us for more details on the application processcontact us for more details on the application process and capital calculations.

In general, one should anticipate bringing in at least US$ 150,000 as capital resources for an advisory firm, and upwards of US$ 250,000 for higher risk activities. 

The fees paid to the DIFC Registrar of Companies (ROC)

The ROC helps to set up the legal structure of the DIFC Regulated Firm. Shareholders can be individual, or corporate. There are many options available, such as ‘Private Company Limited by Shares’ and ‘Limited Liability Partnerships’. In case of Private Company Limited by Shares, the costs for setting up include:

Application for Incorporation of a Private Company Limited by Shares : US$ 8,000

Commercial License on Incorporation : US$ 12,000 (annual fee and paid on the anniversary of incorporation)

Fees paid to the Commissioner of Data Protection 

The data protection notification is part of the process of registering a new entity in the DIFC. The costs involved are as follows:

Registration - US$ 1,250

Annual renewal – US$ 500

Other costs involved in establishing and maintaining a regulated license in the DIFC

Office Space

Every entity registered in the DIFC is required to lease a physical office. You can choose from the Gate and surrounding buildings, or other buildings within the DIFC, such as Emirates Financial Towers, Central Park, Park Avenue, Burj Daman and Currency House.

Prices vary, depending on the space availed and the building. Also, the DIFC calculates visa allocations at approximately 1 visa every 80 sq.ft. Which means that if you need 10 visas, then you would require at least 800 sq.ft of office space. 

Here is an indication of the prevailing rates:

New DIFC Funds Centre – US$ 27,000 per annum for a Flexi Desk, US$ 42,000 per annum for a fixed desk and approximately US$ 50,000 per annum for a 2-desk private office.

DIFC Business Centre – from a one-desk office at US$ 30,000.

DIFC Fitted Offices – from US$ 55 per square foot.

Other buildings – from US$ 50,000 per annum

Visas

Every employee working for a firm in the DIFC has to be provided a work permit, or what is usually called a visa. 

The Firm will have to apply for an Establishment Card that costs US$ 630 per annum. Once done, the costs per visa are as follows:

Visas (per visa) – from US$ 1,500

PSA Deposit (per visa) – US$ 682

You would also have to factor in mandatory health insurance for employees, and costs for such insurances commence at US$ 3,500 per employee. 

Professional Indemnity Insurance

Professional Indemnity Insurance (PII) is a mandatory safeguard for DIFC-regulated firms, designed to protect both the institution and its clients against financial losses arising from professional errors, omissions, negligence, or breaches of duty. In practice, this insurance covers claims where a client suffers harm because a firm provided incorrect advice, executed a transaction improperly, mishandled documentation, or otherwise failed to meet expected professional standards. It also absorbs legal defence costs, settlements, and certain liabilities arising from staff oversight or operational mistakes. The DFSA requires firms to maintain PII at levels proportionate to their business model, revenue, and client asset exposure, ensuring that regulated entities can withstand claims without jeopardising financial stability or client interests.   

Costs start from US$ 6,000 a year, for a coverage of US$ 500,000. 

Audits

The DFSA mandates Internal audits and External Audits for all firms that conduct financial services from the DIFC. Internal audits are usually conducted at least once a year and costs start from US$ 6,000 per audit. External auditor costs start at US$ 7,000 per annual audit. 

Compliance, Finance and Legal

These costs vary depending on whether the services are in-house or outsourced.

 

Our Services

How can we at 10 Leaves assist you?

We provide turnkey services for  DIFC Regulated Licenses. From initial consultations to assistance in authorisations, to assistance in preparation of the legal documentation, 10 Leaves helps you navigate the DFSA Rulebook and submit an application that is comprehensive, complete and compliant.

Our services include assistance in:

Pre-Licensing

• Reviewing the business model and advice on the applicable regulatory framework;
• Preparation of the Regulatory Business Plan and comprehensive financial projections;
• Preparation of all policies, processes and manuals required;
• Provision of Outsourced services, including outsourced Compliance Officer, outsourced Finance Officer and outsourced Risk Officer services;
• Assistance in recruitment of senior management;
• Provision of well-qualified and experienced Non-Executive Directors;
• Finalising the legal structure, including holding company setup and customisation of Memorandums; and
• Finalisation of leased space, bank account opening and obtaining Financial Services Permissions.

Post-Licensing

• Compliance, Finance and Risk outsourced and support services.
• VAT and Corporate Tax services.
• Secretarial services.
• Variation of Permissions.
• Compliance remedial measures.
• Compliance audits.
• Training.
• Senior-level recruitment services.

Our solution focuses on comprehensive training for Directors, Senior Executive Officers, Finance Officers, and Compliance Officers. We equip them with the knowledge and skills needed to successfully clear interviews conducted by the DFSA during the authorisation process and for ongoing compliance.

We also assist teams with corporate and commercial documentation through our legal consultancy - 10 Leaves Legability. We assist in the drafting of:

• Founder agreements.
• Shareholder agreements.
• Investor agreements.
• Share vesting/ESOP plans.
• Client/Supplier/Distributor agreements.
• Employment agreements.

We also provide services in Luxembourg, Saudi Arabia, India and Mauritius.

Get in touch today! to know more about DIFC Regulated Licenses.

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