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Dubai, April 27 / The Dubai International Financial Center, in cooperation with “Refinitiv”, one of the largest providers of data on financial markets and infrastructure in the world.. today issued a report entitled “The Future Center for Global Hedge Funds” that highlights Dubai’s growth and its growing role as a promising global destination for hedge funds and alternative investments.
As part of the center’s efforts to stimulate this growth, the financial center is currently in discussions with more than 60 global hedge funds looking to enhance its presence within the center.
This report is the first of its kind within the intellectual leadership series that the Center will issue in 2023. The report reviews the most prominent features and trends prevailing within the global hedge fund sector and sheds light on the accelerating pace of expansion by large hedge funds in Dubai. The report also addresses the advantages The value of the Dubai International Financial Center as a gateway to the Middle East, Africa and South Asia, and its growing role as a future global destination for hedge funds.
The year 2022 witnessed an increase of 54% in the total number of hedge funds that established their business within the Dubai International Financial Center, which is the headquarters of many existing companies. American and British hedge funds located in the Dubai International Financial Center constitute two-thirds of the hedge funds operating in the center, including two of them. The ten largest funds in the world.
With the growth of both the number and scope of specialization of hedge funds operating within the Dubai International Financial Center, the center sees favorable opportunities in the latent and expected development of the incubating environment for these funds, and its ability to attract more hedge funds, including smaller funds, in addition to brokerage firms and companies. There is no doubt that these efforts, in turn, will contribute to attracting more talents and companies, which will contribute to enhancing the pace of growth in the emirate and thus consolidating its position as a global center for hedge funds.
Arif Amiri, Chief Executive Officer of the Dubai International Financial Center Authority, said, “The growth of the Dubai International Financial Center contributes significantly to achieving the goals of the Dubai Economic Agenda D33 by strengthening Dubai’s position among the top three economic cities in the world. It is really encouraging that we are considered an attractive global destination by Global hedge funds, as the Dubai International Financial Center managed to attract a record number of them in 2022, with an annual increase of 54%, while more of them intend to join us in the near future. This growth reflects the ability of the emirate and the Dubai International Financial Center to keep pace with global economic transformations And their ability to create and develop an advanced system that enables the growth of the financial sector.”
For his part, Nadim Najjar, Managing Director for Central and Eastern Europe, the Middle East and Africa at Refinitiv, which is owned by the London Stock Exchange Group, said, “Many hedge funds have begun expanding into new emerging markets as a result of escalating operational challenges in their home markets. Especially since the markets are in “The home country no longer offers the broad growth prospects or cost-effective incentives offered by emerging markets. Hedge funds are showing increasing interest in Dubai as a gateway to the region, and are looking to consolidate their presence in the Dubai International Financial Center as an emerging global hub for alternative investments and hedge funds.”
Hedge funds showed high resilience in the face of a challenging global environment, as their globally managed assets reached more than $4.8 trillion at the end of 2022, an increase of 1% compared to 2021, according to the Barclay Hedge Index.
Hedge funds operating in Dubai benefit from the emirate’s location as an ideal gateway to Western Europe and high-growth emerging markets in the Middle East, Asia and Africa. Dubai is included in the top quarter of the best financial centers in the world, according to the Global Financial Centers Index. The Dubai International Financial Center is one of only 10 financial centers around the world that have been classified as deep and broad global centers, and it has also been ranked among the top 15 financial centers based on three main factors that the index relies on for evaluation: government and regulatory sectors, professional services, and environment. Business.
The Dubai International Financial Center also adopts a strong regulatory model supported by the Dubai Financial Services Authority, and a legislative system compatible with English common law, which is the global standard for financial services, in addition to a solid legal system that includes civil and commercial regulations, which enhances its path towards advancing the future of the financial services sector. It also provides an integrated operating environment that ensures the implementation of an effective tax system. Its system also provides portfolio managers with a wide network of partners looking to establish their business in Dubai. Hedge funds can benefit from a wide and growing range of supporting services including brokerage firms, law firms, advisory agencies and tax experts.
As it continues to attract large financial firms from around the world, including hedge funds looking for new markets to establish and further grow their businesses, Dubai and the DIFC benefit from the opportunity to access both the retail sector and the growing wealth of institutions in the region.
