A growing number of hedge fund portfolio managers are looking to relocate from traditional hubs including London and Singapore to the UAE, drawn by zero personal income tax, favourable time zones, and access to sovereign wealth capital – and firms are following their star traders.
That’s according to a report by Bloomberg which highlights that Dymon Asia Capital opened in Dubai in October after losing a top recruit to a rival firm’s Dubai office. Co-founder Danny Yong is now targeting ten PMs on the ground by year-end.
Millennium Management meanwhile, launched its Dubai office to accommodate a trading team’s request, and because the firm expected growth there, and now employs 120 people across 25 pods, according to one oft Bloomberg’s sources.
The report also claims that Point72 Asset Management set up in Dubai in 2022 following staff insistence and has grown its headcount to over 40.
Part of the draw for PMs is the UAE’s zero income and capital gains tax regime compared with 45% and 24% respectively in the UK.
Dubai and Abu Dhabi also straddle European and Asian markets, enabling 24-hour trading coverage.
Not all industry leaders are sold though, with teh report highlighting that Ken Griffin’s Citadel and DE Shaw remain absent, prioritising in-house collaboration over fragmented teams.
