Low taxes, supportive regulatory frameworks, technological innovation and a quality talent pool have made Dubai an attractive home for a growing number of hedge funds, according to two Dubai officials. These attributes could help the emirate act as a gateway to the Middle East for Hong Kong businesses.
The comments came during a webinar on Thursday by Refinitiv and the Dubai International Financial Centre (DIFC), which also released a report during the event.
There are 4,000 millionaires in Dubai, among the highest in the world, coming from the Middle East, India and Africa, with US$966 billion in private wealth, according to Refinitiv. There are already 60 hedge funds either operating or in the pipeline in the city, with more than US$1 trillion in assets under management, according to the DIFC.
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"It looks very great going forward," said Chris Cameron, director of the Dubai Financial Services Authority, the regulator that oversees the DIFC. There has been an influx of businesses coming to the region and applying for licences to set up office. "The Dubai government and the UAE [have] managed to put the city further on the map."
Hong Kong's Chief Executive John Lee Ka-chiu (left), meets with HH Sheikh Mohammed bin Rashid Al Maktoum (right), the vice-president and prime minister of the United Arab Emirates (UAE) and the ruler of Dubai, in Dubai on February 9, 2023. Photo: Handout alt=Hong Kong's Chief Executive John Lee Ka-chiu (left), meets with HH Sheikh Mohammed bin Rashid Al Maktoum (right), the vice-president and prime minister of the United Arab Emirates (UAE) and the ruler of Dubai, in Dubai on February 9, 2023. Photo: Handout>
Dubai's attributes could make it attractive to Hong Kong, whose leader, Chief Executive John Lee Ka-chiu, recently visited the Middle East to promote the city and its technology firms. Lee hoped to connect investors from the Gulf region with the Greater Bay Area, and has been in talks to attract oil giants into listing in Hong Kong.
In the last couple of years, Cameron said he had seen a "tremendously healthy looking licensing pipeline" of businesses looking to set up in Dubai and be "closer to the pool of wealth" in the region.
Dubai and Hong Kong have a lot of complementary opportunities between them that would produce mutual benefits, Hadi Badri, CEO of economic development at Dubai Economy and Tourism, told the Post in a separate interview, without elaborating.