Abstract:
Venture capital companies play a significant role in promoting economic development, supporting entrepreneurship, and financing innovative enterprises with substantial growth potential. However, regulatory barriers continue to affect the establishment of venture capital companies in Jordan and the United Arab Emirates, raising concerns about legal certainty, investment accessibility, and institutional effectiveness. This study examines the principal regulatory challenges affecting venture capital formation in both jurisdictions and explores legal mechanisms for strengthening investment governance. The research employs a normative juridical method using statutory, conceptual, and comparative legal approaches to analyze company formation regulations, investment requirements, and institutional supervision. The analysis identifies three potential regulatory challenges. First, legislative uncertainty concerning the legal classification and organizational structure of venture capital companies may complicate their establishment and operation. Second, complex registration procedures and regulatory requirements may increase compliance costs and discourage investors from establishing venture capital enterprises. Third, insufficient coordination among regulatory institutions and limitations in investor protection mechanisms may undermine legal certainty and restrict access to entrepreneurial financing.
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