Dubai is preparing to unveil a new dedicated facility for hedge fund startups, the DIFC Hedge Funds Centre, within the Dubai International Financial Centre (DIFC). The move highlights the city’s expanding role as a key hub for hedge fund operations and is expected to result in the signing of 20 to 30 contracts by year-end.
Scheduled for completion by the end of April, the DIFC Hedge Funds Centre will cater to hedge funds in their early stages, offering short-term, fully-equipped office spaces designed for firms testing their business models before scaling operations. The center will feature communal areas, facility management services, and a plug-and-play environment that includes desks, reception services, and trading infrastructure.
This development responds to growing demand for flexible office spaces, particularly from hedge fund managers based in the United States and the United Kingdom, with potential interest from other regions such as Singapore, Hong Kong, and India.
While no official comment has been made by a DIFC representative, the new facility is being retrofitted from the former court building within the financial district. It is aimed at supporting smaller hedge fund spin-outs and independent launches, complementing the DIFC’s existing roster of 75 hedge funds, including prominent names like Andurand Capital Management and Point72 Asset Management. Many of these funds manage over $1 billion in assets.
The launch of the Hedge Funds Centre is also expected to address space constraints within the DIFC, as other nearby buildings, including the ICD Brookfield Tower, are approaching full occupancy. Rental rates at the new facility are anticipated to be more competitive, offering an attractive option for new entrants to the hedge fund industry.
Dubai has increasingly become a destination of choice for asset managers, drawn by its favorable tax environment, strategic time zone, and proximity to key markets in Asia, the UK, and the Middle East. Additionally, the DIFC has implemented reduced licensing fees and capital requirements, further bolstering its appeal to hedge funds seeking a cost-effective and efficient base for operations.
