DIFC’s rise as a top-five global hedge fund hub comes into sharp focus
DIFC has emerged as a global powerhouse for hedge funds, with over 100 hedge fund managers now calling the Centre home. Global connectivity, world-class legal and regulatory standards, and a vibrant talent pool have made DIFC the destination of choice for hedge funds seeking agility, scale and access to deep capital markets.
This article originally appeared in The Alternative Investor's January 2026 edition.
Salmaan Jaffery
Published: 13/01/2026
5 min read
As we look back on 2025, one of the most defining developments in the UAE has been the extraordinary expansion of Dubai International Financial Centre (DIFC) as the preferred destination for the world’s hedge fund community. Towards the end of 2025, DIFC surpassed a major milestone - more than 100 hedge fund managers are now registered in the Centre, firmly cementing its movement towards a top 5 global hub for the industry.
This step-change in growth reflects more than market momentum; it demonstrates a deeper structural shift in how global managers view both Dubai and the wider Middle East. Hedge funds are no longer operating here as peripheral satellites. Instead, they are building meaningful, strategically important presence to access capital, talent and global markets with agility and scale.
A breakout year for hedge fund expansion
The past year has seen remarkable acceleration. Since the start of 2024, the number of hedge fund managers in DIFC has more than doubled, rising from 50 to over 100, with 81 of them each managing more than USD 1bn in assets, representing one of the largest concentrations of billion-dollar hedge funds anywhere in the world.
Throughout 2025, the Centre welcomed an impressive roster of new arrivals including Baron Capital Management, BlueCrest Capital, Naya Capital, Nine Masts Capital, North Rock Capital, Pearl Diver Capital, Select Equity Group, Strategic Investment Group, Silver Point Capital, Squarepoint Capital and Welwing Capital Group. They join long-standing global powerhouses such as BlackRock, Millennium, Brevan Howard, Balyasny, Blue Owl, Dymon Asia, ExodusPoint, Hudson Bay, QRT and Verition. A particularly notable milestone was the arrival of Oak Hill Advisors, with USD 108bn in assets under management, alongside AIP and Varenne, pushing DIFC past the symbolic 100-manager threshold and further reinforcing its global status.
Why global hedge funds continue to choose DIFC
Hedge funds continue to scale in DIFC because the Centre offers a compelling combination of talent, efficiency, global connectivity and access to capital. Managers value Dubai’s unrivalled pool of local and international talent, which has deepened alongside the city’s growing appeal for financial professionals seeking both opportunity and quality of life. Managers also take comfort from DIFC’s internationally respected legal and regulatory framework, grounded in English common law, which provides clarity and confidence for sophisticated cross-border activity. Crucially, DIFC’s location allows managers to run Asian, European and North American operations centrally, relying on their ability to trade those markets in a business day - a critical advantage few other global financial centres can provide. Lastly, DIFC provides direct access to deep global and regional capital pools, including ultra-high-net-worth individuals, family offices and sovereign wealth funds, and is supported by a mature ecosystem of banks, advisors and service providers, resulting in an operating environment uniquely suited to modern alternative investment strategies.
Innovation as a catalyst for growth
DIFC’s proactive approach to innovation has also played a defining role in its rise. The DIFC Funds Centre, a first-of-its-kind co-working model for asset managers, enables firms to establish quickly, operate cost-effectively and scale efficiently. The Centre brings together global heavyweights, mid-sized players, emerging spinouts and ambitious start-ups in one collaborative environment, creating both diversity and dynamism. Importantly, more than 85 per cent of DIFC-based hedge funds are now licensed to raise and manage private and sovereign capital directly from the Centre, underscoring the maturity of the regulatory framework and the depth of investor appetite.
Alternatives continue their move to the mainstream
The global reallocation towards alternatives also continues to support DIFC’s growth. The Centre’s Future of Alternative Investments report highlights accelerating flows into hedge funds, private credit and other alternative strategies, driven by technological advances, regulatory evolution and greater investor sophistication. High-net-worth individuals and family offices have doubled their allocation to alternatives since 2008, reaching around 15 per cent, and this shift is reflected in the expansion of DIFC’s wealth and asset-management community, which today comprises more than 470 firms and over 1,250 family-related business entities. Dubai’s position as the world’s leading destination for wealth migration, with nearly 9,800 millionaires estimated to have relocated to the UAE by the end of 2025, further strengthens this growth trajectory.
Looking ahead: A strong outlook for 2026
As we enter 2026, the outlook for hedge fund activity in DIFC is exceptionally strong. All indicators point to continued momentum: allocations to alternatives are increasing, regional wealth is deepening, and demand for sophisticated investment solutions is expanding. DIFC’s unique blend of world-class talent, operational efficiency, global market connectivity, and direct access to deep pools of capital positions the Centre as the natural choice for hedge funds seeking global reach from a single, strategically located base.
DIFC’s ascent towards becoming a top-five global hedge fund hub is a milestone that marks both achievement and opportunity. As global investors recalibrate their portfolios and managers seek new engines of growth, DIFC stands ready to shape the next chapter of alternative investment performance and innovation.