Dubai is set to open a dedicated building, known as the DIFC Hedge Funds Centre, specifically designed for hedge fund startups aiming to expand into the city. This initiative reflects Dubai’s growing reputation as a hub for the hedge fund sector and is expected to result in 20 to 30 contracts being signed by the end of the year. The new center will offer short-term, plug-and-play office spaces tailored for firms testing their operations before scaling up.

Located within the Dubai International Financial Centre (DIFC), the Hedge Funds Centre is scheduled to open by the end of April. The facility will include communal areas, facility management, and a ready-to-use environment featuring desks, receptionists, and trading capabilities. This move comes in response to an increasing demand for such spaces, especially from hedge fund managers in the United States and the United Kingdom, as well as potential interest from Singapore, Hong Kong, and India.

A representative from the DIFC has chosen not to comment on the development at this time. The new building, which is being retrofitted from the financial district’s former court building, aims to support smaller spin-outs and independent launches. Currently, the DIFC hosts a roster of 75 hedge funds, including notable names like Andurand Capital Management and Point72 Asset Management, many of which manage over $1 billion in assets.

The establishment of this center will help alleviate space constraints for established managers, as nearby locations, such as the ICD Brookfield tower, are nearing full occupancy. Additionally, the rental rates at the DIFC Hedge Funds Centre are expected to be more affordable, making it an attractive option for new entrants in the hedge fund industry.

In recent years, the United Arab Emirates has become a popular destination for asset managers, drawn by its tax-free income, favorable weather, and a time zone that facilitates trading across Asia, the UK, and Middle Eastern markets. The DIFC has also implemented reduced licensing fees and capital requirements to further entice hedge funds to the region.