Hedge funds and the UAE
Dubai’s hedge fund community expanded by 50% in 2024, marking a structural shift in global finance (Hedgeweek, 2025). The UAE has moved from an emerging market to a serious rival to London and New York, attracting fund principals, trading teams, and long-term family relocations.
75 hedge funds now operate from Dubai, alongside roughly 3,000 proprietary trading firms across its free trade zones. Wealth and asset management firms have increased to 410, contributing to a 25% rise in total financial firm registrations to 6,920. Employment within Dubai’s financial services sector has surpassed 45,000 professionals (Hedgeweek, 2024). This acceleration, which began around 2020, stems from regulatory innovation, competitive taxation, and a concentration of institutional capital.
Why hedge funds are choosing the UAE
- Strategic position
The UAE’s location bridges European and Asian trading hours, allowing continuous global coverage. For multi-strategy managers running macro, quant, or commodities portfolios, this positioning supports efficient execution and real-time coordination between global desks (European Business Magazine, 2025). - Regulatory clarity
The DIFC and Abu Dhabi Global Market (ADGM) have become respected regulatory jurisdictions, offering 100% foreign ownership, efficient licensing, and credible governance standards (DFSA, 2024). Managers value the consistency these frameworks bring to operations and investor confidence (PKF, 2018). - Tax structure
The UAE’s zero personal income and capital gains tax regimes remain powerful incentives. Compared with personal tax rates of up to 45% in the UK (Bloomberg, 2025), the region offers meaningful advantages for portfolio managers and senior executives. The steady relocation of professionals with their families signals permanence and institutional maturity.
Access to capital
The UAE now concentrates remarkable private wealth. Dubai alone hosts more than 72,000 millionaires, while national private wealth exceeds USD 996 billion. The number of high-net-worth individuals is projected to grow by 40% by 2031 (Investment Monitor, 2024).
For investor relations professionals, the region’s appeal lies in its allocator depth. Middle Eastern sovereign wealth funds have increased hedge fund allocations by 11% to USD 498 billion, the highest global share of sovereign capital in hedge funds (Investment Monitor, 2024). Allocators increasingly prefer managers with a visible local presence and transparent engagement models. This proximity allows funds to build genuine relationships with decision-makers and to participate in long-term partnerships rather than transactional allocations.
Institutional validation reinforces this trend. Hedgeweek reports that Millennium Management now employs more than 120 professionals across 25 pods in Dubai, demonstrating confidence in the region’s allocator base and operational infrastructure.
Connecting allocators and managers: Apex Invest Middle East
From November 23 - 25, 2025, the Apex Invest Middle East in Abu Dhabi will bring together the international allocator community for three days of investor-led networking and discussion. Designed for and by investors, these events connect allocators and managers through curated meetings, market insight sessions, and targeted networking opportunities.
Attendees benefit from keynote speakers, fireside conversations, and one-to-one meetings structured to foster meaningful introductions and collaborations. Each event maintains a two-to-one ratio of allocators to managers, ensuring LPs remain in the majority. Investor-only sessions and social events further strengthen dialogue and trust within the community.
To date, the Apex Invest events have facilitated more than 250,000 investor meetings across 25 countries. The programme’s unique meeting format enables managers to curate their experience and focus resources where relationships and mandates are most likely to develop. Managers gain direct access to sovereign allocators, family offices, and institutional investors seeking long-term partnerships. These gatherings represent the practical expression of the UAE’s role as a global meeting point for capital and strategy.
Operating environment and culture
Apply to attend here.
Infrastructure has developed alongside capital inflows. The UAE now offers institutional-grade services such as prime brokerage, fund administration, and regulatory support (Arabian Business, 2025). This environment enables new entrants to establish credible operations efficiently.
While international professionals continue to dominate front-office functions, local capacity-building remains a national priority. Government programmes are expanding Emirati participation in finance, ensuring the sector’s sustainability (Fastco, 2025). Understanding local business culture remains key; relationship-based engagement and respect for Islamic values underpin successful partnerships.
Sustaining momentum
The UAE’s continued ascent depends on talent development, digital infrastructure, and diversification beyond hydrocarbons. Both Dubai and Abu Dhabi are advancing fintech, regulatory refinement, and investor outreach to maintain competitiveness with Singapore and Miami. The region’s net wealth is projected to reach USD 4.4 trillion by 2028 (Boston Consulting Group, 2024).
Government initiatives such as the Dubai Economic Agenda D33 and Abu Dhabi Economic Vision 2030 confirm a sustained commitment to financial services excellence. Hedge fund managers are responding by embedding trading, investor relations, and operational teams locally - an indicator of strategic permanence rather than short-term experimentation.
Expert support for UAE expansion
Since 2003, we have supported hedge funds worldwide, providing the infrastructure that enables managers to focus on performance and capital development.
- Structure strategically. Some managers establish UAE-domiciled funds to demonstrate regional commitment, while others operate offshore structures such as Cayman SPCs or Luxembourg RAIFs paired with local offices. We guide clients through these decisions, balancing tax, investor, and operational considerations.
- Strengthen governance. Gulf regulators prioritise transparency and demonstrable oversight. We design compliance frameworks that align with ADGM and DIFC standards while meeting international investor expectations across reporting, audit, and ESG practices.
- Build relationships. Regional allocators favour continuity and access to decision-makers. Our investor relations network and the Apex Invest platform create opportunities for trusted introductions and tailored mandates.
- Leverage technology. Our digital solutions streamline onboarding, reporting, and liquidity management, allowing managers to demonstrate institutional quality efficiently.
- Global scale, local expertise. Administering thousands of hedge funds worldwide gives us comparative insight into structures, performance, and best practice. We combine that perspective with regional knowledge to deliver solutions aligned with the UAE’s priorities.
Your guide to UAE expansion
Considering expansion into the UAE?
Complete the form to download our guide for practical steps on structuring funds, understanding regulation, and engaging with the region’s allocator community.
