Dubai’s status as a global hub for alternative asset managers continues to strengthen, with the Dubai International Financial Centre (DIFC) reporting record-breaking growth in company registrations during the first half of 2025 – driven in large part by a sharp rise in hedge funds and wealth management firms, according to a report by Bloomberg.
The DIFC said it registered 1,081 new companies in H1 2025, marking a 32% year-on-year increase, and bringing the total number of active firms in the hub to 7,700. The number of hedge funds operating in the financial centre surged from 50 to 85, while wealth and asset managers grew from 370 to 440 over the same period.
Major recent entrants to the DIFC include BlueCrest Capital, PIMCO, and TransAmerica Life Bermuda, underscoring Dubai’s growing appeal among global investors. The expansion comes despite ongoing geopolitical tensions and uncertainty around global tariffs.
Dubai has emerged as a key rival to Abu Dhabi in attracting large-scale investment managers, aided by its light-touch tax regime, flexible regulatory environment, and streamlined business setup process. The DIFC is also rolling out regulatory enhancements to remain competitive in the region’s increasingly sophisticated financial landscape.
The growth surge has not come without challenges, with rising demand placing pressure on the city’s infrastructure and housing markets, while the DIFC is now actively expanding, with over 1.6 million square feet of new space under development. Employment in the centre has grown 9% year-on-year, reaching nearly 48,000 people.
The trend mirrors the broader growth seen in the UAE. In Abu Dhabi, the Abu Dhabi Global Market (ADGM) reported a 33% increase in assets under management in Q1 2025, and now hosts 144 fund and asset managers, as the region cements its role as a magnet for global capital.
