The Collective Investment Law — DIFC Law No. 2 of 2010

Official text

Collective Investment Law (DIFC Law No. 2 of 2010) (DFSA Rulebook, consolidated)

Status

in force, as amended — most recently by DIFC Law No. 5 of 2022

Jurisdiction

Dubai International Financial Centre (UAE)

Type

primary law

This page

summary only — the linked Law is the source

The Collective Investment Law is the DIFC's primary fund statute. It defines what a Collective Investment Fund is and splits the world into Domestic and Foreign Funds. Crucially, it requires that a Domestic Fund be run by a DFSA-authorised Fund Manager. On top of that spine the DFSA builds the fund tiers that actually drive structuring. These are Public Funds (retail, most rules), Exempt Funds and Qualified Investor Funds (professional-only, lighter touch). The operational detail is carried in the DFSA's Collective Investment Rules (CIR) module. For a manager choosing the DIFC, this Law is the frame. It says you need an authorised Fund Manager and which fund box you sit in.

Scope and the core mechanism

The Law works off three moves. First, the definition of a Collective Investment Fund and the arrangements that are carved out of it. Second, the Domestic / Foreign split. A Domestic Fund is established or domiciled in the DIFC and must have a Fund Manager that is an Authorised Firm. A Foreign Fund is marketed in from outside. Third, the delegation of the operating regime to DFSA Rules (the CIR module). The Public / Exempt / Qualified Investor Fund tiers live there, with their conduct, disclosure and governance requirements. The full article-by-article text is searchable clause-by-clause through the Graph of rules and ask-the-law.

In practice: the Law is the shell. The tier you pick (Exempt vs QIF vs Public) is where the real cost and freedom trade-off sits. That detail is in the CIR module (Collective Investment Rules), not the Law. The CIR rules are mined to clause level here too, so "ask the law" reaches both the DIFC CIL and its CIR rulebook. Decide the investor base first, because it decides the tier, which decides the rulebook you live under.