Dubai is stepping up its bid to attract hedge fund startups by launching a dedicated workspace at the Dubai International Finance Centre (DIFC) for firms looking to establish a foothold in the region, according to a report by Bloomberg.
The DIFC is retrofitting a building to provide short-term, plug-and-play offices for managers piloting their operations before scaling up, its the facility set to open its doors by the end of April.
The report cites unnamed sources familiar with the matter as revealing that the DIFC Hedge Funds Centre will aim to accommodate 20 to 30 firms by year-end. The 10,000-square-foot space will be housed in the financial district’s former court building, and offer fully equipped offices, networking areas, reception services, and trading infrastructure for firms that receive in-principle regulatory approval.
The move reflects growing demand from hedge funds looking to expand into Dubai. After roadshows in San Francisco and New York, DIFC expects most interest to come from US and UK-based firms, though managers from Singapore, Hong Kong, and India are also eyeing the opportunity.
Dubai’s hedge fund ecosystem has grown significantly, with 75 firms — including Andurand Capital Management and Point72 Asset Management — already operating in the emirate. Many of these firms manage over $1bn in assets, but DIFC’s latest initiative signals a shift toward attracting smaller spin-outs and independent launches.
The new Hedge Funds Centre also addresses rising demand for office space, as prime locations like the ICD Brookfield tower are nearing full occupancy. DIFC has confirmed that rents in the new space will be more affordable.
Meanwhile, neighbouring Abu Dhabi has also seen a surge in hedge fund activity, driven by the $1.7tn in assets controlled by its sovereign wealth funds. The capital has responded by expanding its financial district to a nearby island, increasing its capacity tenfold.
