Dymon Asia Capital Expands into Dubai, Marking Its First Middle East Office

Dymon Asia Capital, a prominent hedge fund based in Singapore, has made its first foray into the Middle East by opening a new office in Dubai. This move adds to the growing number of hedge funds establishing a presence in the emirate. According to a Reuters report, the office, which opened in November, is the firm’s ninth globally and follows Dymon Asia's successful acquisition of a Category 3C license from the Dubai Financial Services Authority (DFSA).

Dymon Asia joins other major multi-strategy hedge funds, such as Balyasny Asset Management and ExodusPoint Capital Management, in expanding to Dubai. The city has become increasingly attractive to fund managers due to its tax-free environment, business-friendly policies, advantageous time zone, and developing financial ecosystem. These factors have made Dubai a hotspot for global hedge funds looking to access both regional and international markets.

Kenneth Kan, Deputy CEO of Dymon Asia, explained the firm's decision to set up in Dubai, saying in an interview: “The main reason we chose Dubai was because it is the location of choice for most investment professionals in the region.” He also noted that the time zone makes it easier for portfolio managers to trade across Asian, European, and U.S. markets during regular office hours, a significant advantage for global operations.

According to the Dubai International Financial Centre (DIFC), more than 40 hedge funds managing over $720 billion in assets had established offices within the centre by May 2023, highlighting the city's growing prominence in the global hedge fund industry.

Dymon Asia, with $3 billion in assets under management, is one of the largest multi-strategy hedge funds in Asia. The firm operates across various asset classes, including equities, credit, and currencies, with specialized portfolio teams managing its diverse strategies. Dymon Asia’s flagship fund has delivered a strong 13.4% return through November, driven by its Asia-focused equity long-short, relative value, and macro strategies.

The Dubai office opened with two portfolio managers and is set to expand to five by January 2024. As the firm continues to grow, the new location is expected to play a key role in strengthening its presence in the Middle East while maintaining its focus on Asian markets.