In recent years, the UAE has transformed into a regional and international financial hub, attracting top hedge funds and investment institutions from around the world. 2024 seems to have marked a significant turning point in this context, with growing interest from major Asian institutions to join this expanding market, according to a report by Bloomberg.

Dubai and Abu Dhabi have become strategic choices for investment institutions due to a range of attractive factors, most notably tax exemptions, their ideal time zone between global markets, and the presence of sovereign wealth funds managing vast assets, including $1.7 trillion in Abu Dhabi and $1.2 trillion managed by family offices in Dubai.

Increased Asian Presence

According to the Dubai International Financial Centre (DIFC), Dubai saw a significant rise in interest from Chinese companies in 2024, with two large Asian firms—Daimon Eja and Eja Research & Capital Management—opening new branches in Dubai. Strong economic ties between the UAE and China, which has been the UAE’s top trading partner since 2020, are playing a major role in these moves.

Moreover, Asian companies are seeking a regional base close to large markets like India, making Dubai and Abu Dhabi ideal options.

Continuous Expansion and Growth in Expertise

Abu Dhabi has also made strong strides, attracting global names such as Brevan Howard and Marshall Wace, with companies like Hill House Investment and CBE holding talks to open new offices in the UAE capital. These developments coincide with efforts by Dubai’s regulatory authorities, which recently hosted executives from Chinese firms to encourage regional expansion.

Thanks to these initiatives, the number of hedge fund employees in the UAE has surpassed 1,000, supported by companies like Millennium Management. A growing community of hedge fund managers and institutional investors has emerged, contributing to the financial and economic activity in the country.

With this increasing momentum, the UAE seems to be steadily advancing toward strengthening its position as a global hub for hedge funds, capable of competing with major financial cities like London and Hong Kong. As Paul Marshall, co-founder of Marshall Wace, expressed, “Abu Dhabi is already doing a fantastic job.”

The UAE is not only an investment destination but has become a gateway to the world, serving as a bridge between global and regional markets, reflecting its ambitious economic vision.