Hedge funds flock to Dubai’s DIFC, doubling in the last 2 years

Hedge funds continue to pour into the bustling Dubai International Financial Centre, more than doubling in number from two years ago.

Close to 80% of the 102 funds now operating in the economic free zone manage at least $1 billion in assets, with global players like Oak Hill Advisors, Baron Capital, BlueCrest  and Silver Point among recent arrivals, Bloomberg reports, 

Beyond hedge funds, the DIFC contains nearly 500 wealth and asset management firms, the news agency said, up from about 350 at the start of last year.

The surge reflects the growing appeal of Dubai’s tax-free regime, its time zone aligned with Europe and access to deep pools of capital and talent.  Many of the new offices, though, consist of secondary branches rather than headquarters as the city competes with established global hubs such as New York and London, the news agency notes.

Growth is also attributed to more than 1,250 family-related business entities based in the free zone and the UAE’s rising appeal among relocating millionaires.