The Securities and Commodities Authority (SCA) regulations enacted this month, that puts stringent approval process on the sale of foreign funds, do not augur well for the country’s young domestic mutual fund industry and could kill the fund sector.
That was a message from Shehab Gargash, group CEO of Daman Investments, a Dubai-based investment management company, during his annual press conference held on Wednesday.
“When you come in and straddle too much regulation too soon on a nascent industry, I can tell you right now that you will not see new, meaningful mutual funds in the UAE for the foreseeable future,” said Gargash. “That’s a shame. The ability to pull in money and deploy it, is key to any economy’s move to success.”
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