An accredited investor is a person or organisation that is authorised to purchase and sell specific investments that are not subject to regulation by financial institutions. Due to their income, wealth, size of the organisation, position in the governance, or level of experience, they are granted this particular privilege.
Wealthy individuals, banks, insurance firms, brokers, and trusts are examples of accredited investors.
To become accredited in the UAE, an individual or business entity must meet certain criteria, which may include:
- Individuals who have a high net worth, typically exceeding a certain threshold, such as AED 5 million or more.
- Individuals who have a high income level, often exceeding a specific amount, such as AED 1 million or more per year.
- Companies, institutions, or legal entities with substantial assets or capital, often exceeding a certain threshold, such as AED 10 million or more.
- Professional investors, including licensed financial institutions, banks, insurance companies, or government-related entities.
- Individuals or entities with extensive knowledge, expertise, or experience in financial markets, investments, or relevant industries.