UAE Notified Alternative Investment Fund (NAIF)
General Overview
The UAE Notified Alternative Investment Fund (NAIF) is a streamlined investment vehicle designed for professional investors seeking efficient access to alternative asset classes. Introduced under the framework of the UAE Securities and Commodities Authority (SCA), the NAIF regime allows for a simplified notification process rather than a full licensing procedure, enabling faster time-to-market and reduced administrative requirements.
NAIFs can be structured to accommodate a wide range of alternative investment strategies, including private equity, venture capital, real estate, hedge funds, and other non-traditional asset classes. They are managed by an SCA-licensed fund manager, ensuring compliance with regulatory standards while retaining the flexibility needed to respond quickly to market opportunities.
- Fast set-up process through notification rather than full authorization
- Access for professional investors only, ensuring a sophisticated investor base
- Broad investment scope across multiple asset classes and strategies
- Regulatory oversight under the SCA framework for transparency and investor protection
- Tax-efficient structuring within the UAE’s competitive financial environment
By combining regulatory assurance with operational flexibility, the UAE Notified Alternative Investment Fund offers an attractive platform for fund managers and investors seeking to capture opportunities across global markets while benefiting from the UAE’s position as a leading financial hub.
Key Features
- Corporate Flexibility: The clear market practice for the NAIFs and other Maltese fund vehicles is to use a SICAV, even though it can be structured as a SICAV, INVCO, Limited Partnership, Unit Trust, ICC, RICC, or Contractual Fund.
- Investment Scope: Eligible to invest in a wide array of asset classes, including private equity, real estate, hedge funds, debt instruments, infrastructure, and loan acquisitions (excluding origination).
- Quick Time-to-Market: Notification regime, no MFSA licensing required. The MFSA includes the NAIF on its list within 10 working days of valid submission by the AIFM.
- Umbrella Fund Structure: May operate as an umbrella fund with multiple sub-funds, each with segregated assets and liabilities.
- EU Passporting Rights: Managed by an EU-authorized AIFM, enabling marketing across the European Union.
Governance & Service Providers
- Alternative Investment Fund Manager (AIFM): Mandatory appointment of an authorized AIFM.
- Depositary: Must appoint a local depositary.
- Fund Administration: Must be located in UAE or appropriately delegated.
- Auditor: Appointment of UAE-registered auditor is mandatory.
- Directors: Minimum of 3 directors, including at least 1 UAE-resident and independent from key service providers.
Use Cases
- Private Equity & Venture Capital Funds
- Real Estate Investment Vehicles
- Hedge Funds & Debt Funds
- Infrastructure Investments
Setup & Support by FalconVest Management Group
- Assistance with NAIF structuring and registration.
- Drafting of regulatory documents (Fund Prospectus, Limited Partnership Agreement, etc.).
- Ongoing fund management, administration, and compliance services.