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Dubai International Financial Centre (DIFC), the leading global financial centre in the Middle East, Africa, and South Asia (MEASA) region, today announced several updates to further solidify its position as the premier choice for wealth and asset management companies.
Commenting on the announcement, Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, said, "DIFC’s wealth and asset management community continues to experience rapid growth, outperforming the market and strengthening our position as the region’s preferred financial centre for the sector. More than 400 firms now operate from DIFC, and to support demand from hedge fund spinouts, fund platforms, and boutique asset management firms, we are pleased to launch the DIFC Funds Centre."
DIFC continues to see an influx of wealth and asset management firms. The Centre hosted 350 companies in this sector at the end of 2023, a number that has since grown to over 400, outperforming the UAE financial free-zone market ten-fold. The Centre’s hedge fund ecosystem is booming, with 60 hedge funds now operating in DIFC, including 44 members of the ‘billion-dollar club’.
Reflecting the breadth and depth of DIFC’s wealth and asset management ecosystem, recent authorised joiners include multi-strategy hedge funds, fund platforms, investment management regulatory hosting solutions, and global asset managers. These firms include Allfunds, Aster Capital Management, Bluecrest, Eisler Capital (DIFC) Ltd, JNE Partners, Polen Capital Management, Principal Investor Management (DIFC) Limited, TCW Investments, Tudor Capital, and Westbeck.
Driven by exponential growth and an exceptional pipeline, including from hedge fund spinouts, fund platforms, and boutique asset management firms, DIFC will open a first-of-its-kind environment in the first quarter of 2025.
The DIFC Funds Centre will cater to companies and talent looking to scale up, offering access to flexible working solutions and peer-to-peer networking. Wealth and asset management applicants are invited to join the waitlist now, with places allocated on a first-come, first-served basis.
The DIFC Funds Centre is the latest strategic initiative designed to develop the wealth and asset management sector. Recent initiatives include partnerships with the Alternative Investment Management Association (AIMA), Deal Catalyst, HFM, and the Standards Board for Alternative Investments (SBAI).
A report by LSEG outlines the latest trends in the global wealth and asset management landscape.
The UAE has emerged as a significant booking centre, witnessing nine percent growth in assets under management (AUM), higher than any other booking centre in 2023. The report highlights how DIFC is benefitting from wealth inflows into Dubai and the wider region, driven by a growing number of millionaires, centi-millionaires, family offices, and prominent financial players. Dubai is home to 62 percent of these high-net-worth individuals (HNWIs). The UAE is projected to see the largest net gain of millionaires, welcoming an additional 6,700 in 2024.
Dubai stands out in the report for its growing fund manager and investor base. The city offers a dual advantage, providing investor access to vast pools of both public and private capital. Dubai is a stable, business-friendly location, providing access to over 40 regional sovereigns, including Dubai’s Investment Corporation of Dubai and Dubai Investment Fund. Clients can also access US$3.5 trillion in private capital pools, as Dubai is the capital of private capital and home to the region’s highest concentration of wealth.
The report also highlights Dubai's appeal in offering lifestyle options suitable for high-calibre talent and their families, an area where the city excels.