Dubai’s Financial Hub Sees Surge in Hedge Fund Presence

PC: Bloomberg News

Growth in Hedge Funds and Asset Managers in Dubai

Dubai has further stepped up its role as an international financial centre. It was announced on September 9 that the number of hedge funds based in the Dubai International Financial Centre has reached 60. The emirate is still among the favourite places for top finance companies around the world, especially in the current post-pandemic period.

Joining the long list of hedge funds moving into the emirate are Eisler Capital, Aster Capital, and Westbeck. Of the 60 hedge funds now operating from the DIFC, 44 manage more than $1 billion in assets, putting Dubai as a hub for large-scale financial operations.

Post-Pandemic Surge and Notable Firms

Hedge fund registrations in Dubai have indeed increased sharply in the post-pandemic era, but perhaps never as much as last year, when some of the largest multi-strategy firms in the world started opening offices in the city. Among the most prominent is Izzy Englander’s Millennium Management, which set up an office in Dubai at the beginning of 2022 and, since then, has increased its headcount in the emirate to more than 80 people.

This is also a reflection of Dubai’s emergence as a financial hub, with various hedge fund and asset managers setting base in its shores. The DIFC has grown at an unprecedented rate, with 400 wealth and asset management companies currently operating from it, compared to 350 at the end of 2023.

Expansion Beyond Dubai

Meanwhile, Dubai busies itself strengthening its financial sector, Abu Dhabi does not fall behind. Brevan Howard, the most powerful global hedge fund, has been operating in Abu Dhabi since 2023 and was earlier this year the first hedge fund to have 100 employees in the UAE.

Other top houses have also opened operations in the UAE’s capital. Chris Hohn’s TCI Fund Management has opened an office in Abu Dhabi and relocated its global head of investor relations, Bronwyn Owen, to the UAE from New York. Investment bank Morgan Stanley and Toronto-based asset manager Fiera Capital have also launched operations in Abu Dhabi this February.

Further Growth and Attraction

Global hedge funds, investment banks, and asset managers continue to be lured by the UAE, particularly Dubai and Abu Dhabi, as many firms see the region as a base for strategic operations. This influx into the Gulf states attests to the ongoing appeal of UAE financial hubs as they anchor their places on the global scene.