Dubai has solidified its position as a global financial powerhouse, with family offices based in the city now managing assets exceeding $1 trillion. This growth has been fueled by an influx of high-net-worth individuals (HNWIs) and global firms relocating to the United Arab Emirates (UAE).
At the Future of Finance event, Arif Aamiri, CEO of the Dubai International Financial Centre (DIFC) Authority, highlighted the pivotal role of family businesses in Dubai’s economy. He stated:
“Family businesses contribute significantly to Dubai’s economy. The DIFC is home to over 120 families and 800 family-related structures and entities who manage more than $1.2 trillion in assets.”
Surge in Hedge Funds and Financial Activity
Dubai’s financial sector has also witnessed significant growth, particularly in the hedge fund industry. The DIFC now hosts 60 hedge funds and 44 billion-dollar funds, with industry headcount surpassing 1,000 professionals. The presence of major global firms, such as Millennium Management and Balyasny Asset Management, has been instrumental in this expansion.
“We are now one of the top ten locations in the world for hedge funds activity,” Aamiri noted. “And based on the current trajectory, we are on track to become one of the top five in the coming years.”
Dubai’s Appeal for Wealth Migration
The UAE is on track to be the leading destination for relocating millionaires in 2024, according to migration advisory firm Henley & Partners. Factors like favorable tax policies, world-class infrastructure, and ease of business setup continue to attract affluent families and institutions.
To meet the rising demand, the DIFC is constructing three new office towers. Employee numbers at the financial hub have also surged by 66% since 2019, reaching nearly 44,000 workers as of June 2024.
