An Introduction to Non-Profit Incorporated Organisations in the DIFC

Analysis

While the Dubai International Financial Centre (the DIFC) remains primarily focused on the financial services industry, its stable and sophisticated legal and regulatory regimes have increasingly attracted organisations in the culture and arts, retail, leisure and - more recently - the non-profit sectors.

To date, only a handful of non-profit entities have been established in the DIFC. Yet, the more recently introduced regulations allowing the creation of the Non-Profit Incorporated Organisations (NPIOs) may lead to increased interest. Nonetheless it remains unclear how the NPIO will fare as an alternative to pre-existing entities in the DIFC such as the company limited by shares (Ltd.) and limited liability company (LLC).

Sector Diversification in the DIFC

While the majority of entities based in the DIFC are commercial companies, a number of non-profit organisations maintain a presence in the centre. These are non-profit industry bodies rather than charities in the conventional sense. The DIFC's focus on financial services most appropriately caters to this class of organisation, but the recently introduced NPIO model is not limited in sector and could fit any non-profit purpose permitted under DIFC and UAE laws.

Ltd./LLC vs. the NPIO