The Dubai Financial Services Authority (DFSA) has granted an asset management licence to Middle East Venture Partners (MEVP) Capital making it one of the first authorised venture capital asset managers in the UAE.
The UAE government announced a new regulatory framework for venture capital firms last year amid huge growth in the sector.
Venture capitalists have become an important source of capital for startups but have been hitherto self-regulated. The new framework places more reporting and operating principles on these firms to improve governance.
The DFSA Category 3 licence establishes a framework for improved risk management, reporting and full know-your-client and anti-money laundering compliance, according to the authority.
The licence award comes shortly after MEVP launched its third Mena venture capital fund, the Middle East Venture Fund III which will invest in series B and growth-stage tech companies in the region.
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