Dubai's DIFC Sees 32% Surge in New Company Registrations

Dubai has become a magnet for global capital, particularly from hedge funds and asset management giants, as the region continues to diversify its economy away from oil dependence. The city's low tax burden, simplified company registration processes, and the presence of sovereign wealth funds have made it an attractive destination for high net worth individuals and financial institutions.

In the first half of this year, the number of newly registered companies in the Dubai International Financial Centre (DIFC) reached a record high of 1,081, a 32% increase year-on-year. This surge includes a variety of institutions such as asset management companies, hedge funds, and family offices. The total number of active companies in DIFC now stands at 7,700, a 25% increase from the same period last year.

The number of wealth management and asset management companies registered in DIFC increased from 370 last year to 440 this year. The number of hedge funds also saw a significant increase, growing by 72% to 85, with 69 of these being large funds managing over 100 million dollars. DIFC is now home to over 10,000 funds that are managed or sold within the center.

Notable institutions that have set up operations in DIFC this year include private investment companies, global investment management firms, and major banks from around the world. The growth in family-related businesses has also been substantial, with the number of registered entities increasing by 73% to 1,035, and the number of foundations growing by 54% to 842.

The Abu Dhabi Global Market (ADGM), another financial hub in the United Arab Emirates, has also seen robust growth. In the first quarter of this year, the total assets managed by companies in ADGM increased by 33% year-on-year, and the number of finance-related companies reached 2,781, a 43% increase from the previous year. The presence of trillion-dollar sovereign wealth funds in the region has further fueled this growth, making the UAE a key player in the global financial landscape.