Hedge Funds and Wealth Firms Drive Dubai's Record Growth in Financial Hub

Dubai's financial hub, the Dubai International Financial Centre (DIFC), reported a 32% increase in company registrations in the first half of 2025, with 1,081 new companies setting up, bringing the total to 7,700. The number of hedge funds operating in the DIFC rose to 85, while wealth and asset management firms increased to 440. The surge in popularity has led to rising living expenses and infrastructure strain.

The Dubai International Financial Centre (DIFC) has reported a significant surge in company registrations during the first half of 2025. According to a statement released by the DIFC, the financial hub welcomed 1,081 new companies, representing a 32% increase compared to the same period last year. This growth has brought the total number of active companies at the DIFC to 7,700 [1].

The increase in registrations is particularly notable among hedge funds and wealth management firms. The number of hedge funds operating within the DIFC has risen to 85, up from 50 in the previous year, while wealth and asset management firms have increased to 440 from 370 [2]. This surge in popularity can be attributed to Dubai's favorable tax regime and the relative ease of setting up businesses in the region.

However, this growth has not come without challenges. The influx of new companies has led to rising living expenses and increased strain on the city's infrastructure. The DIFC now employs nearly 48,000 people, an increase of 9% year-on-year, and is developing more than 1.6 million square feet of space to meet the growing demand [2].

Abu Dhabi, the neighboring financial hub, has also seen significant growth. The Abu Dhabi Global Market (ADGM) reported a 33% increase in assets under management in the first quarter of 2025. The ADGM now hosts 144 fund and asset managers, with staffing on Al Maryah Island rising to 29,000 [2].

In conclusion, while the DIFC's growth is a testament to its appeal as a financial hub, it also highlights the need for infrastructure development and cost management to sustain this momentum.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_S8N3SN019:0-dubai-s-financial-centre-registrations-rise-32-in-first-half/
[2] https://www.bloomberg.com/news/articles/2025-07-28/hedge-funds-wealth-firms-fuel-dubai-finance-hub-s-record-growth