Singapore-based hedge fund manager Dymon Asia Capital has expanded its operations to the Middle East for the first time, joining the growing list of hedge funds in Dubai by opening a new office in the emirate, according to a report by Reuters.

The new office, launched in November, is Dymon Asia's ninth globally, and comes after the firm secures a Category 3C license from the Dubai Financial Services Authority (DFSA).

Dymon Asia follows other large multi-strategy firms including Balyasny Asset Management and ExodusPoint Capital Management in moving to Dubai, with the emirate's tax-free status, business-friendly policies and time zone, and burgeoning financial ecosystem making it a magnet for fund managers.

The report quotes Kenneth Kan, deputy CEO of Dymon Asia, as saying in an interview that: "The main reason we chose to set up an office in Dubai was because it was the location of choice for most investment professionals in the region.

“The time zone is more favourable, allowing portfolio managers to trade Asian, European, and US markets during regular office hours,” he added

According to the Dubai International Financial Centre (DIFC), by May 2023, more than 40 hedge funds managing over $720bn in assets had established offices within the centre.

Dymon Asia, one of Asia’s largest multi-strategy hedge funds with $3bn in assets, operates across equities, credit, and currencies, managed by specialised portfolio teams. The firm’s flagship fund delivered a 13.4% return through November, driven by Asia-focused equity long-short, relative value, and macro strategies.

The Dubai office launched with two portfolio managers and is set to expand to five by January 2024.