Dubai Financial Center report: Dubai is a major gateway to alternative investment opportunities in emerging markets
Dubai, 9 October / WAM / The Dubai International Financial Center today revealed its fifth report in a series of reports on the future of the financial sector.
The report, titled “The Future of Alternative Investments,” highlights the rapid growth of alternative investments globally, with the value of assets under management tripling over the past decade, exceeding $20 trillion.
These results indicate Dubai’s increasing position as a major gateway for investors searching for alternative investment opportunities in high-growth emerging markets.
Alternative investments were previously considered a specialized sector, but their popularity is increasing today, as institutional investors, high net worth individuals, and family offices tend to increase the amount of their funds allocated to these investments.
The growth comes as a result of investor demand for diversification, inflation protection, and uncorrelated returns, while major asset classes such as private equity, private credit, real estate, infrastructure, hedge funds, and digital assets are gaining increasing strategic importance, especially in emerging markets.
According to the report, emerging markets today are engines of growth in the alternative investment sector, driven by rapid growth in gross domestic product (which exceeds the growth of developed markets by 2 to 3 percent), the presence of a young demographic, as well as these markets moving beyond old traditional systems.
At the same time, emerging markets like Dubai offer unique opportunities in innovation-driven sectors, such as artificial intelligence, sustainable infrastructure, and digital assets, making technological innovation the centerpiece of its economic progress.
As regulatory frameworks become increasingly clear, cryptocurrencies and tokenization technology are beginning to gain wide acceptance, as evidenced by rising usage rates in emerging markets. Sustainability-related projects are also driving demand for infrastructure investments, with Dubai leading regional efforts in this area.
Dubai enjoys a unique position as a global center for alternative investments, as it combines the transparency and protection provided by advanced financial centers, with direct access to high-growth emerging markets.
As a center with world-class infrastructure, a flexible legal and regulatory framework, and an active ecosystem, the DIFC works to consolidate Dubai’s position at the forefront of global destinations for alternative investments, by providing a reliable platform that connects global capital with emerging market opportunities.
So far, the center has succeeded in attracting more than 440 companies specialized in wealth and asset management, including 85 hedge funds, 69 of which manage assets worth more than $1 billion. Together, these companies constitute the largest gathering of alternative investment and asset management companies in the region.
DIFC’s comprehensive offering of corporate structures, including special purpose vehicles and family office structures, enables investors in alternative investments to engage with complex cross-border opportunities more easily.
In the context of enhancing Dubai’s role as a launching pad for alternative investment managers, the DIFC Hedge Fund Center provides specialized office space, collaborative environments, and advanced digital infrastructure, supporting fund managers in achieving growth and expanding the scope of their operations.
Salman Jafari, Chief Business Development Officer at the Dubai International Financial Center Authority, said that emerging markets constitute promising prospects for alternative investments, driven by the growing demand for infrastructure, the adoption of digital assets, and the development of innovation and sustainability trends, noting that Dubai has been able to consolidate its position as a strategic gateway for investors wishing to seize more growth opportunities, and the center continues its role. A leader in shaping the future of the alternative investment sector by providing a clear legal, regulatory and operational environment.
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