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DIFC Emerges as a Top Five Global Hub for Hedge Funds

DIFC Emerges as a Top Five Global Hub for Hedge Funds

Dubai International Financial Centre has entered the top tier of global hubs for hedge fund managers, passing a milestone that underscores its rapid rise in alternative investments.

The Centre has now registered more than 100 hedge funds, doubling from 50 at the start of 2024. Of these, 81 manage more than $1 billion in assets. DIFC’s growth places it among the world’s five largest hedge fund centres, reinforcing its role as the leading financial hub across the Middle East, Africa and South Asia.

New hedge fund managers establishing operations in DIFC during 2025 include Baron Capital Management, BlueCrest Capital, Naya Capital Management, Nine Masts Capital, North Rock Capital, Pearl Diver Capital, Select Equity Group, Strategic Investment Group, Silver Point Capital, Squarepoint Capital and Welwing Capital Group. They join established global firms already operating in the Centre, including Balyasny, BlackRock, Blue Owl, Brevan Howard, Dymon Asia, Exodus Point, Hudson Bay, Millennium, Qube Research and Technologies, and Verition.

DIFC has attracted hedge fund managers by offering access to Asian, European and U.S. markets, a large and specialised talent pool, and capital from ultra-high-net-worth individuals, family offices and sovereign wealth funds. Its banking and advisory infrastructure supports trading and capital-raising across regions.

Arif Amiri, Chief Executive Officer of the DIFC Authority, said the milestone reflected the maturity of the Centre’s platform and growing confidence among global managers. He noted that client focus, partnerships and product innovation have supported DIFC’s expansion across alternative investments.

One of DIFC’s initiatives is the DIFC Funds Centre, a co-working model designed to allow asset managers to establish and scale operations efficiently. The space hosts large global firms as well as mid-sized managers, spinouts and start-ups. More than 85 percent of DIFC-based hedge fund managers are able to raise and manage private and sovereign capital from the Centre.

Momentum in the sector is supported by broader trends outlined in DIFC’s recent report on alternative investments, which highlights the impact of technology, regulatory reform and wider investor access. According to the report, high-net-worth individuals and family offices have doubled their allocations to alternative investments since 2008, to about 15 percent of portfolios.

DIFC’s wider wealth and asset management sector now includes more than 470 firms. The Centre is home to over 1,250 family-related business entities and benefits from the UAE’s position as a leading destination for global wealth migration. Henley & Partners projects that 9,800 millionaires will have relocated to the UAE by the end of 2025.

Photo credits: Government of Dubai Media Office

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Alexander Agafiev Macambira

Alexander Agafiev Macambira is former tech contributing writer for Forbes Monaco.

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