MoF announces decision on Qualifying Investment Funds

As part of its continuous efforts to enhance the investment environment in the United Arab Emirates, the Ministry of Finance has announced its issuance of Cabinet Decision No.

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44 of 2025 on Qualifying Investment Funds and Qualifying Limited Partnerships for the Purposes of federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, which replaces the provisions of Cabinet Decision No. 81 of 2023. This new decision aims to attract more investments and promote the growth of the national economy.

PREFERENTIAL TAX TREATMENT:Among the most significant provisions of the new decision is the introduction of a tax incentive to ensure that investment income deriving from a Qualifying Investment Fund will not be subject to UAE Corporate Tax on the income derived through the fund, provided that the real estate assets threshold (10%) and the diversity of ownership conditions are not breached.

Additionally, the new decision offers greater flexibility, granting QIFs a grace period even after the first two years of establishment. This grace period allows them to remedy any breaches of the diversity of ownership requirements provided such breach does not exceed an aggregate of ninety days in a year or if they occur during the liquidation or termination of the fund.