DIFC report positions Dubai as global hub for alternative investments

Dubai, UAE – October 10, 2025: The Dubai International Financial Centre (DIFC), the leading global financial hub for the Middle East, Africa, and South Asia (MEASA), has unveiled its fifth report in the flagship Future of Finance series, titled “The Future of Alternative Investments.”

The report highlights the rapid rise of the global alternatives industry, with assets under management (AUM) having tripled in the past decade to surpass USD 20 trillion, and emphasizes Dubai’s growing role as a gateway for investors seeking access to diversified, high-growth markets.

Alternative investments gain global traction

Once viewed as a niche category, alternative investments are now a central focus for institutional investors, high-net-worth individuals (HNWIs), and family offices seeking diversification, inflation protection, and returns that are less correlated to traditional markets.

The report identifies private equity, private credit, real estate, infrastructure, hedge funds, and digital assets as key asset classes gaining strategic importance, particularly in emerging economies.

New frontiers for capital growth

According to DIFC’s findings, emerging markets are now the growth engines for alternative investments, fueled by strong GDP performance — often 2–3% higher than developed economies — along with youthful demographics and the adoption of digital-first systems.

Emerging economies such as Dubai are also offering unique opportunities in AI, sustainable infrastructure, and digital assets, placing technological innovation at the heart of their economic evolution.

With greater regulatory clarity, cryptocurrency and tokenisation are moving toward mainstream adoption, especially in developing markets. Sustainability-linked projects are also driving new waves of capital toward green infrastructure, with Dubai leading regional initiatives aligned with global ESG goals.

Watch: From Sand to Skyline: DIFC’s Journey to a Global Financial Hub

Dubai’s growing dominance in the alternatives landscape

The report underscores Dubai’s strategic position as a global hub for alternative investments, offering the transparency and regulatory stability of a developed financial centre alongside direct access to fast-growing emerging markets.

Through its world-class legal framework, advanced infrastructure, and thriving financial ecosystem, DIFC is creating an enabling environment that connects international capital to new investment opportunities across the MEASA region.

Today, the Centre is home to more than 440 wealth and asset management firms, including 85 hedge funds, 69 of which manage over USD 1 billion each. Collectively, these firms represent the largest concentration of alternative investment and asset management entities in the region.

DIFC’s comprehensive company structures, including Special Purpose Vehicles (SPVs) and dedicated family office frameworks — allow investors to manage complex, cross-border portfolios effectively. Additionally, the DIFC Funds Centre provides tailored workspaces, digital infrastructure, and collaborative environments to support fund managers scaling in the region.

A strategic hub for the next era of investment

Commenting on the findings, Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, said:

“Emerging markets are a compelling frontier for alternative investments, backed by growing infrastructure needs, adoption of digital assets, and evolving innovation and sustainability agendas. Dubai, specifically, has positioned itself as a strategic gateway for investors seeking to capitalise on the next era of growth. Against this backdrop, DIFC is shaping the future of the alternative investments industry by offering legal, regulatory and operational clarity, and access to high-growth opportunities in emerging sectors and regional economies.”

Launch at the Fixed Income Alternatives Conference – Dubai

The report was officially launched at the Fixed Income Alternatives Conference – Dubai, the first and only event of its kind in the city.

Co-hosted by DIFC and DealCatalyst, the conference brought together leading global investors, sovereign wealth funds, asset managers, banks, and financial experts to explore the future of fixed income alternatives. The event focused on emerging strategies driving the next wave of growth in regional markets and shaping the evolution of alternative investing worldwide.