A rising number of prominent hedge funds are establishing their presence in Dubai. Drawn by the allure of low taxes and the wealthy investors in the region, several firms have opened offices in the city within the past year.
In the aftermath of the Covid pandemic, Dubai has positioned itself as a regional hub for the hedge fund industry. As of July 2023, 40 funds were registered in the emirate, and over a third of those have arrived in the past year. While London and New York remain the primary hubs of the global hedge fund industry, Dubai is increasingly seen as an attractive alternative, especially for those seeking higher earnings and a more appealing lifestyle.
The absence of personal income tax in the United Arab Emirates makes Dubai an attractive location for hedge fund talent. Portfolio managers have been offered substantial signing bonuses to come to this region.
The growth of the hedge fund industry in Dubai has reached a critical mass, making it feasible to hire talent from within the region rather than seeking it from abroad. Additionally, Dubai’s geographical location, in proximity to European and Asian markets, is advantageous for efficiently managing investments.