The Gulf Cooperation Council (GCC) is enhancing its financial market integration by adopting a regulatory framework for fund passporting, set to launch in early 2025 for compliant states.
During the 29th GCC Committee of Heads of Financial Market Authorities meeting, member states approved regulations to facilitate cross-border investments and promote cooperation. This unified framework marks the first regulation of investment fund units across the GCC, aiming to create a secure and integrated financial environment.
The regulations are designed to attract investors by simplifying the regulatory landscape for investment funds across GCC borders, thus expediting procedures and unlocking investment opportunities. A team of GCC legal and technical experts developed these regulations, focusing on fund registration, transparency, governance, and compliance.
These regulations aim to maintain high transparency standards, detailing fund manager obligations, fee regulation, and deregistration powers for non-compliant funds. They also protect unit holders’ rights and ensure compliance with financial standards.
Once implemented, these passporting regulations are expected to boost economic integration and sustainable development, positioning the GCC as a key international investment hub.