Dubai’s International Financial Centre (DIFC) recorded a sharp increase in new company registrations in 2025, driven by a surge in hedge funds and wealth managers establishing operations in the emirate, as the city accelerates plans to significantly expand the district’s footprint, according to a report by Bloomberg.
The DIFC said 1,924 new firms registered last year, representing a 28% increase year-on-year and taking the total number of active registered companies to 8,844. The financial hub now employs more than 50,000 people.
Growth momentum is expected to continue into 2026, according to DIFC governor Essa Kazim, who said early figures from January point to sustained demand from international firms.
Hedge funds have been a key driver of the expansion, with the number of hedge funds operating from the DIFC rising to more than 100, roughly double the level at the start of 2024. Arrivals in 2025 include Oak Hill Advisors, BlueCrest Capital and Silver Point Capitals who join established global players such as Millennium Management and ExodusPoint Capital Management in the emirate.
Around 80% of hedge funds based in the DIFC manage more than $1bn in assets, highlighting the institutional scale of firms relocating to Dubai. Several managers, including Arrowpoint Investment Partners, are also expanding local teams and relocating senior executives to the city.
The influx of alternative asset managers has contributed to strong growth in the wealth and asset management sector, with the number of such firms increasing to 557, up from around 350 at the start of 2024. Family offices have also expanded rapidly, with nearly 1,300 family-related entities now based in the DIFC, reflecting the UAE’s growing appeal to high-net-worth individuals.
To accommodate demand, Dubai is pressing ahead with a major expansion of the financial district. The DIFC Zabeel District development will more than double the size of the hub, adding 17.7 million square feet across six phases scheduled for completion by 2040. Once completed, the expanded district is expected to support up to 42,000 companies and 125,000 workers.
The expansion, estimated to involve projects worth more than AED100bn, will be financed primarily through DIFC capital, with bank financing available if required.
