PC: Velocity Blog
This week saw major news in both the UAE’s financial and fintech sectors, respectively, as the region inches closer toward being a global financial force. From the launch of new hedge funds based in Dubai to major funding rounds into fintech companies, the events underscore a rapidly shifting UAE investment landscape.
Growth in Dubai Hedge Funds and Asset Managers
Meanwhile, Dubai continues to gain steam as a major global financial hub. As of September 9, the Dubai International Financial Centre was home to 60 hedge funds, of which 44 were managers of assets over $1 billion. This growth makes Dubai one of the mega hubs in terms of international financial activity.
Some of the more recent arrivals to the DIFC include Eisler Capital, Aster Capital, and Westbeck. The hedge fund registrations have gained considerable steam in the post-pandemic era, while famous firms such as Millennium Management have also scaled up their presence in the city. Millennium Management, which is led by Izzy Englander, opened an office in Dubai at the start of 2022 and has since built up a workforce with more than 80 employees.
Equally, Dubai’s status as a financial centre is underlined by the total number of wealth and asset management companies, which has risen by 400 from 350 at the close of 2023. Global hedge funds, investment banks, and asset managers continue to find the UAE, particularly Dubai and Abu Dhabi, an important destination given the fact that has helped this country get a better standing in the global financial arena.
FlapKap Raises $34 Million for Expansion
UAE-based fintech platform FlapKap has raised $34 million in fresh debt and equity funding. BECO Capital led the round, which also saw participation from Pact VC, A15, Nclude, and QED Investors, with debt financing from Channel Capital. This takes FlapKap’s total fundraise to $37.6 million.
This Pre-Series A funding will help FlapKap ramp up the scale in capability for the UAE and the GCC region. The firm intends to deploy more capital toward empowering SMEs, enhancing the technological infrastructure to launch a suite of trade finance products uniquely designed for B2B businesses.
Launch of Three Additional Funds by Aditum
Aditum Investment Management Limited today announced it has added three new funds to the DFSA-regulated platform, Aditum Global Access ICC Ltd. These funds are expected to go live on the platform in September 2024 and will further extend Aditum’s offering.
These include the HCM Moderate Fund Open Ended IC Plc and the HCM Adventurous Fund Open Ended IC Plc, which will offer UAE clients access to Aditum’s global multi-asset UCITS strategies. Together, as of August 28, 2024, the funds have assets under management of approximately $229 million.
Chowdhry added, “We are extremely excited about extending the platform and offering on-shore investors access to actively managed multi-asset funds.” Having raised more than $7 billion in assets under management, Aditum is planning to launch at least six other funds before the end of the year.
Paymob Secures $22 Million in Series B Extension
It was headed by Paymob, a leading financial services enabler in the MENA region, raising $22 million in a Series B extension round to bring its total Series B funding to $72 million. The extension is an interesting reflection of the increasing influence that this Fintech operator, Paymob, has managed to have in the market with its robust performance.
The funding round was led by EBRD Venture Capital, with substantial participation also seen from Endeavor Catalyst. Existing investors, including PayPal Ventures, BII, FMO, A15, Nclude, and Helios Digital Ventures, also participated, a signal of improved faith in the growth trajectory of Paymob.
The UAE continues to be a focal point for investments in various financial fields, further solidifying its leading position in the world of finance. This region shows solidity and innovation in the highly competitive global market, from hedge fund development in Dubai to expanding fintech platforms such as FlapKap and Paymob. It is these that would form the pillars of a secure future for the UAE’s financial and investment environment as it moves ahead.
