Dubai International Financial Centre (DIFC) released its latest report, The Future of Alternative Investments, the fifth in its Future of Finance series. The report details the rapid global expansion of alternative investments, with assets under management tripling over the past decade to exceed $20 trillion.

The findings position Dubai as a key gateway for investors targeting alternative assets in emerging markets. Institutional investors, high-net-worth individuals, and family offices are increasing allocations to private equity, private credit, real estate, infrastructure, hedge funds, and digital assets. This growth is driven by demand for portfolio diversification, inflation protection, and uncorrelated returns.

Emerging markets, including Dubai, are identified as major growth engines. These markets benefit from faster GDP growth compared to developed economies, younger populations, and accelerated adoption of innovative technologies. The report highlights sectors such as artificial intelligence, sustainable infrastructure, and digital assets as central to economic development in these regions.

Regulatory clarity in Dubai and other emerging markets is facilitating greater acceptance of cryptocurrencies and tokenization. Additionally, sustainability-linked infrastructure projects are becoming a significant focus for investment.

DIFC’s infrastructure, legal framework, and ecosystem support its role as a global hub for alternative investments. The Centre hosts over 440 wealth and asset management firms, including 85 hedge funds - 69 of which manage more than $1 billion - forming the largest cluster of such firms in the region.

The DIFC Funds Centre provides tailored services, including Special Purpose Vehicles and family office structures, to assist investors navigating cross-border opportunities. This platform aims to support fund managers in scaling operations and accessing regional growth sectors.

Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, emphasized Dubai’s strategic positioning: “Emerging markets offer compelling opportunities driven by infrastructure needs, digital asset adoption, and innovation. DIFC provides the legal, regulatory, and operational clarity to connect investors with these high-growth markets.”

The report was unveiled at the Fixed Income Alternatives Conference in Dubai, the region’s first event dedicated to fixed income alternative investments, hosted by DIFC and DealCatalyst.

Photo credits: Government of Dubai Media Office

Oksana Bozhko

Oksana Bozhko is a Contributor to Dubai Voice.