#Dubai Hedge Fund Boom Pushes DIFC Past the 100-Firm Mark - Bloomberg

Dubai Hedge Fund Boom Pushes DIFC Past the 100-Firm Mark - Bloomberg

The number of hedge funds registered in Dubai’s financial hub has doubled since the start of last year to more than 100, underscoring the city’s rapid rise as an emerging global hub for the industry.

Dubai International Financial Centre is home to 102 hedge funds, following the arrival of firms like Oak Hill Advisors, which has about $108 billion of assets under management. Close to 80% of hedge funds in the DIFC manage assets of more than $1 billion, according to a statement on Monday.

Over the course of this year, the likes of Baron Capital Management, BlueCrest Capital, Silver Point Capital and Welwing Capital Group registered in the DIFC, joining behemoths such as Millennium Management and ExodusPoint Capital Management that already have a presence in the city.

The surge extends beyond hedge funds. The DIFC is approaching 500 wealth and asset management firms, according to a person familiar with the matter, up from about 350 at the start of last year. The growth has been fueled by more than 1,250 family-related business entities based in the hub and the United Arab Emirates’ rising appeal among relocating millionaires.

Dubai has become a magnet for hedge funds, drawn by tax-free income, year-round sunshine and a timezone that allows trading across Asian and European markets. Neighboring Abu Dhabi is expanding rapidly as well, with Marshall Wace and Arini opening offices there over the past year.

Access to the UAE’s vast pools of capital remains a key attraction. Abu Dhabi offers proximity to $1.8 trillion in sovereign wealth, while Dubai hosts family offices controlling more than $1 trillion. Firms are also pitching Gulf postings as perks to recruit and retain talent. Rather than choosing between the two cities, some managers are opting for both.

Still, the UAE hedge fund landscape remains dominated by secondary offices and is far from rivaling established hubs. New York, for instance, hosts more than 1,500 hedge fund headquarters, while Hong Kong and London each have over 300, according to Preqin data.

Even so, the Gulf country is gaining momentum — including as a launchpad for start-ups. At least five portfolio managers from top global hedge funds are setting up their own firms there, Bloomberg News reported last week.

Authorities are responding to the surge. Dubai is building three new towers in the DIFC and has retrofitted another to accommodate hedge-fund start-ups. The city is also weighing significant regulatory changes to attract more managers, Bloomberg News has reported.

Over in Abu Dhabi, a similar influx of firms helped push the number of operational entities within its financial center ADGM to 3,227 in the third quarter, a 43% year-on-year increase. Last week, authorities said they plan to spend at least $16 billion to add offices, luxury homes and retail space.

Gulf markets muted as investors brace for US data; Egypt extends gain | Reuters

Gulf markets muted as investors brace for US data; Egypt extends gain | Reuters

Most Gulf stock markets were subdued on Monday as investors turned cautious ahead of key U.S. economic data that could shape the interest rate outlook.

The upcoming employment, inflation and other indicators are especially critical after a 43-day U.S. federal government shutdown delayed key reports, leaving investors and the Federal Reserve with little certainty.

The Fed last week cut rates by 25 basis points for a third straight meeting but signalled further reductions are unlikely in the near term as it waits for clearer data.

U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari benchmark index (.QSI), opens new tab fell 0.9%, with all constituents in negative territory. Qatar Islamic Bank (QISB.QA), opens new tab slipped 2.4% and Qatar Electricity and Water Co (QEWC.QA), opens new tab dropped 1.8%.

Dubai's benchmark stock index (.DFMGI), opens new tab edged 0.1% lower, weighed down by a 9.7% slide in Gulf Navigation (GNAV.DU), opens new tab and a 0.7% decline in Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender. Ajman Bank (AJBNK.DU), opens new tab gained 3.1% after the Ajman government said on Friday it had raised its stake in the bank to 33.1% from 31.1%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab ended flat, with Saudi Basic Industries Corp (2010.SE), opens new tab down 1.3% and Riyad Bank (1010.SE), opens new tab off 1.1%. Fawaz Abdulaziz Al Hokair & Co (4240.SE), opens new tab rose 1.6% after the retailer signed a 1.58 billion riyal ($421 million) facilities agreement on Sunday.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was little changed as gains in technology, real estate, healthcare and energy offset losses elsewhere.

Abu Dhabi Commercial Bank (ADCB.AD), opens new tab added 1.1%, while Invictus Investment jumped 10.2%, its biggest intraday gain in more than three years, after the diversified trading company said on Friday that International Holding Company (IHC.AD), opens new tab had increased its stake to about 40% in a block trade valued at around 420 million dirhams ($114.36 million).

Abu Dhabi Ship Building (ADSB.AD), opens new tab declined 1.3% after the shipbuilder's board approved a $1.89 billion deal with EDGE Acquisitions Company to build eight vessels for the Kuwaiti government.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.6% for a second straight session, supported by a 1.4% gain in Commercial International Bank (COMI.CA), opens new tab and a 2.8% rise in Palm Hills Developments (PHDC.CA), opens new tab which on Sunday signed an agreement with Marriott International to develop a new luxury hotel in Cairo.