Dubai Sees Record Growth in Hedge Funds and Financial Firms in 2023

The Dubai Financial Services Authority (DFSA) has hailed 2023 as a year of exceptional growth, having successfully licensed and registered a record 117 firms across the financial sector. This represents a 25% increase compared to the previous year, highlighting Dubai's growing prominence as a global financial hub. Among the most notable trends was a significant rise in the number of hedge funds setting up operations, with a particularly impressive 125% growth in the number of hedge fund managers establishing a presence in the Dubai International Financial Centre (DIFC).

In addition to this, the DFSA noted that the overall licensing activity was broad-based, with growth spanning multiple segments of the financial services industry. Asset managers were also key drivers of this expansion, further solidifying Dubai's role as a vital centre for wealth management and investment strategies in the Middle East.

Another major highlight for the year was Nasdaq Dubai, which has become the world’s largest venue for listed ESG sukuk, valued at $27 billion by November 2023. More than 60% of these ESG sukuk are US-denominated, marking a significant step forward in the integration of sustainable finance into the global market. As a result, Nasdaq Dubai remains the world’s second-largest venue for such listings, underscoring the DIFC’s increasing importance in the global financial landscape.