Dubai Now Hosts Four Dozen $1-Billion-Plus Hedge Funds

Dubai has solidified its position as a hub for global wealth and major financial firms, particularly in the hedge fund industry.

According to Bloomberg, the city now hosts nearly four dozen hedge fund firms, each managing assets exceeding $1 billion, and these firms employ more than 1,000 people. Salmaan Jaffery, Chief Business Development Officer of the Dubai International Financial Centre Authority (DIFC), highlighted in a Bloomberg TV interview that the DIFC currently has 63 hedge fund clients, with 44 of them managing assets above the $1 billion mark.

Jaffery emphasized the shift in Dubai’s financial sector, noting that many of these professionals are now deploying capital from the region, rather than just serving as sales or relationship managers, which was more common in the past. The city's financial sector continues to grow, with employee numbers in the DIFC increasing by two-thirds since 2019, now totaling around 44,000 by mid-2024.

Dubai’s appeal as a financial hub is set to increase further, especially with London-based Capricorn Fund Managers launching a hosting platform to assist hedge funds and investment firms in quickly establishing operations in the city. Meanwhile, Dubai faces competition from neighboring Abu Dhabi, which is leveraging its $1.5 trillion in sovereign wealth capital to attract major financial players.

A key draw for hedge funds is Dubai's wealth concentration. The city is home to 212 centimillionaires, making it 15th globally and first in the region for ultra-wealthy residents. This influx of wealth is bolstering Dubai's private banking sector, with institutions like Santander recently opening a DIFC office to serve high-net-worth clients. With its thriving financial ecosystem, Dubai is increasingly being seen as the "capital of private capital" in the region