Hedge funds, wealth firms fuel Dubai finance hub’s record growth

Hedge funds, wealth firms fuel Dubai finance hub’s record growth
Middle East location is increasing its position as a center for global finance.
JUL 28, 2025
By  Bloomberg

by Nicolas Parasie

Dubai’s financial hub reported a record increase in company registrations in the first half of the year, as the influx of hedge funds and wealth management firms continued despite geopolitical tensions and tariff uncertainty.

The Dubai International Financial Centre reported a 32% increase in registrations in the first six months of 2025 compared to the same period last year, with 1,081 new companies setting up in the hub, according to a statement on Monday. The DIFC is now home to 7,700 active registered companies.

The number of hedge funds operating in the DIFC rose to 85 from 50 a year earlier. Wealth and asset management firms increased to 440 from 370. Recent entrants include Bluecrest Capital, PIMCO and TransAmerica Life Bermuda.

In recent years, Dubai has emerged as one of the top destinations for global wealth, thanks to its light-tax regime and the relative ease of setting up businesses. Competing with neighboring Abu Dhabi to attract the world’s largest hedge funds and investment vehicles, the DIFC has been exploring ways, including regulatory reviews, to become more appealing to money managers.

That surge in popularity, however, has come at a cost, with living expenses in the city soaring and infrastructure increasingly under strain.

The DIFC now employs nearly 48,000 people, up 9% year-on-year, and is developing more than 1.6 million square feet of space to meet demand.

Abu Dhabi has also been booming, buoyed by access to its $1.7 trillion in sovereign wealth. Activity at Abu Dhabi’s financial center has surged, with assets under management growing 33% in the first quarter of 2025. ADGM hosts 144 fund and asset managers, while staffing on Al Maryah Island — where it is based — has risen to 29,000.

 

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