Dubai’s status as a global hedge fund hub continues to strengthen, with the number of hedge funds operating in the Dubai International Financial Centre (DIFC) exceeding 100 for the first time, according to a report by Bloomberg.
The report cites data released on Monday as revealing that the DIFC is now home to 102 hedge funds, more than double the figure recorded at the start of last year. Around 80% of those firms manage more than $1bn in assets, underlining the scale of managers choosing the jurisdiction.
New arrivals during the past year include Baron Capital Management, BlueCrest Capital, Silver Point Capital and Welwing Capital Group, adding to established names such as Millennium Management, ExodusPoint Capital Management and Oak Hill Advisors, which oversees approximately $108bn in assets.
Growth has extended beyond hedge funds alone. The DIFC is approaching 500 wealth and asset management firms, up from roughly 350 at the beginning of last year, supported by a rising concentration of family offices and the United Arab Emirates’ appeal to high-net-worth individuals relocating to the region.
Dubai’s attraction for hedge funds is driven by tax-free income, favourable time-zone coverage across Asia and Europe, and access to significant regional capital. Abu Dhabi is also expanding rapidly, benefiting from proximity to sovereign wealth estimated at $1.8tn and attracting firms such as Marshall Wace and Arini.
While the UAE remains smaller than established hedge fund centres such as New York, London and Hong Kong, momentum is building, particularly as a base for new launches. Several portfolio managers from global hedge funds have recently chosen the region to establish independent firms.
Authorities are responding to the influx. Dubai is developing additional office space within the DIFC, including new towers and facilities tailored to hedge fund start-ups, while Abu Dhabi continues to expand infrastructure within ADGM to support further growth.
