DIFC enters world’s top five hedge fund hubs after crossing 100 managers

Dubai: Dubai International Financial Centre (DIFC) has joined the ranks of the world’s leading hedge fund destinations after surpassing 100 registered managers, a milestone that firmly positions the Centre within the top five global hubs for hedge fund managers.

The achievement highlights DIFC’s rapid rise as the dominant base for alternative investment firms in the Middle East, Africa, and South Asia region. The number of registered hedge fund managers has more than doubled since the start of 2024, climbing from 50 to over 100, with 81 belonging to the billion-dollar assets club.

Among the latest firms to set up are Oak Hill Advisors, with $108 billion in assets under management, AIP, and Varenne Capital Partners. They join an influential lineup that includes BlackRock, Millennium, Brevan Howard, BlueCrest Capital, and Exodus Point, among other global heavyweights.

There are several factors behind this sharp growth, such as the Centre’s regulatory stability, availability of world-class talent, and access to capital across three continents. Hedge funds based in DIFC manage portfolios spanning Asian, European, and American markets, while drawing capital from sovereign wealth funds, family offices, and ultra-high-net-worth investors.

“Becoming a leading hedge funds centre reflects the maturity of the DIFC platform as well as the confidence of its participants,” said His Excellency Arif Amiri, Chief Executive Officer of DIFC Authority. “Our client focus and industry partnerships drive product innovation, which continues to fuel our growth. The breadth and depth of our alternative investments community strengthen our position as the only financial centre operating at scale across all sectors, allowing DIFC and our clients to influence the global financial landscape from Dubai.”

A key part of DIFC’s momentum has been the DIFC Funds Centre, a co-working model designed specifically for asset managers. The facility allows hedge funds to establish operations quickly and cost-effectively while scaling up efficiently. It houses a mix of major global players, mid-sized firms, and emerging managers.

Currently, over 85% of hedge funds based in DIFC can raise and manage private and sovereign capital directly from the Centre, highlighting its functional depth as both an operating base and a capital-raising gateway.

A recent DIFC report on the future of alternative investments highlights the sector’s growing importance in diversified portfolios. The study found that allocations to alternatives by high-net-worth individuals and family offices have doubled since 2008, reaching about 15% of total holdings. It attributes the growth to a combination of technological innovation, regulatory reforms, and greater investor access.

DIFC’s broader wealth and asset management ecosystem now counts over 470 firms, supported by a deep local network of more than 1,250 family-related businesses. The UAE’s status as a magnet for wealth is further amplifying this ecosystem. Consultancy Henley & Partners projects that 9,800 new millionaires will relocate to the UAE by the end of 2025, the highest net inflow of affluent residents worldwide.

The acceleration of hedge fund inflows highlights Dubai’s evolution from a regional centre to a major node in the global financial network. As international investors seek diversification and access to high-growth regions, DIFC’s infrastructure, talent base, and policy credibility continue to make it the preferred choice for asset managers aiming to manage cross-border capital seamlessly.