Dubai Surpasses 100 Hedge Funds in DIFC Amid Efforts to Become a Global Asset Management Hub

Dubai – December 15, 2025 | EcoPulse24

Dubai has reached a notable milestone in its efforts to establish itself as a regional hub for hedge funds, with the number of registered funds in the Dubai International Financial Centre (DIFC) rising to 102, indicating a rapid influx of global asset managers to the UAE over the past two years.

According to a report from Bloomberg's 'Mideast Money', this figure represents nearly a threefold increase compared to the end of 2022 and more than double compared to the beginning of last year. Registration data shows that 81 out of the 102 funds manage assets exceeding $1 billion, reflecting that the wave of relocation is not limited to smaller entities but includes internationally recognized names.

This year has seen the entry of several asset management firms and hedge funds into the DIFC, including Baron Capital Management, BlueCrest Capital, Silver Point Capital, and Welwing Capital Group, alongside major players like Millennium Management and ExodusPoint that were already present. Meanwhile, Abu Dhabi continues to expand its base of asset managers, with companies like Marshall Wace and Arini opening offices over the past year, enhancing the UAE's competitiveness as a dual wealth management platform between the two cities.

The appeal of Dubai and Abu Dhabi is based on a range of operational and investment factors, notably a competitive tax environment, geographical timing that allows coverage of Asian and European trading sessions, and proximity to significant liquidity sources; Abu Dhabi is home to sovereign assets estimated at around $1.8 trillion, while Dubai hosts family offices managing wealth exceeding $1 trillion, according to the report.

Despite this progress, Dubai still lags behind traditional global hedge fund centers in terms of size, with New York hosting over 1,500 hedge fund offices, while Hong Kong and London each have more than 300 offices, according to Preqin data cited by Bloomberg. Nonetheless, observers believe that the current growth pace may provide Dubai with 'sustained momentum', especially as more asset managers establish independent firms with initial support from American and European institutions, along with using 'the move to the Gulf' as a draw for attracting and retaining talent.