Dubai is on the way to becoming a global hedge fun hub with more than 60 firms said to be currently in discussions to establish a presence in the city’s Dubai International Finance Centre (DIFC), according to a new report produced by the DIFC and Refinitiv.
Dubai is on the way to becoming a global hedge fun hub with more than 60 firms said to be currently in discussions to establish a presence in the city’s Dubai International Finance Centre, according to a new report produced by the DIFC and Refinitiv.
The DIFC saw a 54 per cent increase in hedge funds setting up within the Centre in 2022, with nearly two-thirds of DIFC-based hedge funds originating from the US and the UK, including two of the world’s ten largest hedge funds.
The report is the first in a thought leadership series being released in 2023 by DIFC and covers key insights on the global hedge fund industry. It also highlights the rapid expansion of established hedge funds into Dubai, and outlines DIFC’s value proposition as a gateway to the MEASA region as well as its growing role as a global hub for hedge funds.
As the number and scope of hedge funds established in DIFC grows, the Centre envisions a further deepening of the ecosystem, including smaller-scale hedge funds, additional prime brokers, and technology start-ups. This augmentation of the ecosystem creates a flywheel for talent and firms, thereby further differentiating Dubai as a global hub for hedge funds.
Arif Amiri, CEO of DIFC Authority said: “DIFC’s remarkable growth significantly contributes to the goal of the Dubai Economic Agenda (D33) to transform Dubai into one of the world’s top three cities for business. It is encouraging to see that we are attracting the attention of international hedge funds, with a record number registering in 2022, up 54 per cent YoY, and more in the pipeline. This reflects Dubai’s and DIFC’s ability to keep pace with global economic shifts and to provide an ecosystem for the financial sector that brings new opportunities for growth”.
“Several hedge funds have already begun to expand into new emerging markets as operating environments in their native markets become increasingly challenging. Moreover, long-established markets, no longer offer growth prospects or cost efficiencies that can compete with those available in emerging hubs. Hedge funds are showing increasing interest in Dubai as a gateway to the region, looking to establish a presence in DIFC – a rising global hub for alternative investments and hedge funds.” said Nadim Najjar Managing Director, Central & Eastern Europe, Middle East & Africa (CEEMA) Refinitiv, an LSEG business.