Multiple new hedge funds establish in DIFC

 Multiple new hedge funds establish in DIFC

Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa and South Asia (MEASA) region, today confirmed that unprecedented numbers of hedge funds continue to set up in the Centre, boosting Dubai’s reputation as the region’s top location for the industry.

Just in the last three months alone, many additional globally renowned hedge funds have been authorised by the DFSA, the independent regulator in DIFC, including Asia Research Capital Management, Brevan Howard, Carrhae Capital, Cresen Capital, Lighthouse Partners, Merlyn Advisors, Noventa Capital Management and Qube Research Technologies. Blue Owl Capital and Walleye Capital have also recently completed their registrations.

The migration of hedge funds to DIFC from other global and regional centres reinforces Dubai’s reputation as the region’s leading financial centre and business capital. It also reflects the emirate’s ability to attract top talent and provide access to large concentrations of public and private capital. Dubai possesses the highest concentration of wealth of any Middle Eastern city with over 68,400 individuals having more than US$1 million of investable wealth, which is triple the number of any other city in the region. Furthermore, $4.7 trillion of capital is managed by Middle Eastern State-Owned investors and Dubai is regarded as a neutral territory for managing investments.

Rapid sector growth is attracting diverse business models, large, medium and smaller managers, technology platforms and is also helping to deepen local prime brokerage and trading capabilities.

Salmaan Jaffery, Chief Business Development Officer, DIFC Authority, said, “DIFC is delighted to welcome our new hedge fund clients to the Centre thereby continuing our remarkable growth as a rising global hub for hedge funds and certainly the region’s largest hedge fund market. Our new clients will manage and grow their business by attracting top global talent and by tapping into deep pools of public and private capital accessible in, and from Dubai.”

Earlier this year, DIFC confirmed it had attracted hedge funds including Hudson Bay Capital, King Street, Balyasny Asset Management and Verition Fund Management LLC. In 2022, DIFC saw a 54 percent increase in total number of hedge funds setting up within the Centre. Approximately two thirds of DIFC-based hedge funds originate from the US and UK, including two of the world’s ten largest hedge funds.

DIFC was also the first financial centre in the UAE to enter into an agreement with AIMA (Alternate Investment Management Association) the alternative investment industry’s pre-eminent voice globally, representing over 2,100 corporate members with over $2.5 trillion hedge fund and/or private credit assets.