Dubai’s DIFC sees surge in new firms as hedge funds drive expansion

Dubai’s International Financial Centre said on Thursday that new company registrations at the hub rose by nearly 40% last year, underscoring the UAE’s growing appeal as a regional base for financial firms, including hedge funds.

The DIFC registered 1,525 new companies during the year, taking the total number of actively registered firms to about 8,840 by the end of December, according to a presentation. That marked a 28% increase compared with 2024.

The growth comes as Gulf states accelerate efforts to diversify their economies away from oil, channeling billions of dollars into sectors such as financial services to attract global capital and talent.

Wealth and asset management firms accounted for a significant share of the DIFC’s expansion, with 557 such companies now operating at the centre. Many have either established new operations or expanded existing ones in Dubai and neighbouring Abu Dhabi, as the UAE draws high net worth individuals with incentives including a relatively business friendly regulatory environment and a tax free status.

DIFC Governor Essa Kazim said the geographical mix of new firms showed a modest increase from the United Kingdom, reflecting the relocation and growth of hedge funds.

“We had a slight uptick in the UK, and that probably has been a reflection of the growth in hedge funds that have been brought from that country,” Kazim told reporters.

The surge in demand has pushed the DIFC to full capacity. Authorities announced last week that the centre will undergo an expansion worth about $27 billion, to be delivered by 2040, to accommodate future growth.

On financing, Kazim said the DIFC posted a net profit of around $400 million last year, which would form a key source of future cash flow for the project, alongside internal resources and a potential return to capital markets.

“Definitely the market is open,” he said, adding that issuing sukuk, which the DIFC has done in the past, remains one of the funding options under consideration.