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The UAE’s hedge fund story is entering a new phase. After years of attracting relocations from global managers, the country is now drawing activity further upstream into fund formation itself, as Dubai and Abu Dhabi increasingly position themselves as places to launch, not just operate.
By the numbers: At least five senior portfolio managers from top hedge funds are launching UAE-based entities, with the three largest spin-outs backed by Brummer & Partners, Schonfeld Strategic Advisors, and Morgan Stanley, Bloomberg reports, citing people familiar with the matter. Former ExodusPoint and Millennium manager Nikolay Aleksandrov (LinkedIn) secured roughly USD 500 mn from Morgan Stanley for Continuum Capital Management, while Omar Newera (LinkedIn) raised a similar amount from Schonfeld for Insight Capital Management.
Sign of the times? Those launches are landing in a market that has already reached critical mass. Dubai International Financial Center now hosts 102 registered hedge funds and says it ranks among the world’s top five hedge fund hubs. The latest arrival is US alternative investment firm Oak Hill Advisors, which manages about USD 108 bn in assets, according to a statement.
That’s not all: As we’ve been reporting throughout the year, the UAE’s hedge fund buildout extends well beyond spin-outs. This year alone, we reported on arrivals including Stronghold Capital, Pimco, Cambridge Associates, Bluecrest Capital, and China International Capital Corporation. Abu Dhabi’s ADGM has drawn Davidson Kempner and Arini, while firms such as Balyasny Asset Management and LSE-listed Man Group are weighing deeper expansions into the capital after first launching in Dubai.
What’s driving the rush?
Zero taxes, regulatory momentum, and proximity to sovereign and family-office capital have turned the UAE into a credible alternative to traditional hedge fund hubs.
What to watch
With spin-outs and incumbents piling in, the next phase will be less about who arrives and more about who scores a W. Rising density will sharpen competition for capital and talent, and quickly separate strategies that scale from those that don’t.
