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Dubai International Financial Centre (DIFC), the leading global financial hub in the Middle East, Africa, and South Asia (MEASA) region, has released its fifth publication in the Future of Finance series, titled The Future of Alternative Investments.
The report highlights the rapid global expansion of alternative investments, with assets under management (AUM) tripling over the past decade to exceed $20tr. It underscores Dubai’s emergence as a key gateway for investors pursuing alternative opportunities across high-growth emerging markets.
Once viewed as niche, alternative investments have become increasingly mainstream, with institutional investors, high-net-worth individuals (HNWIs), and family offices expanding allocations. Growth is being fuelled by investor demand for diversification, inflation protection, and uncorrelated returns, with asset classes such as private equity, private credit, real estate, infrastructure, hedge funds, and digital assets gaining strategic significance—particularly in emerging markets.
Emerging markets
According to the report, emerging markets are now positioned as key growth engines for the alternatives industry, driven by rapid GDP growth—outpacing developed markets by two to three per cent—alongside young populations and the ability to leapfrog traditional systems. Markets such as Dubai are creating new frontiers for investment in innovation-led sectors including AI, sustainable infrastructure, and digital assets, placing technology and sustainability at the centre of economic progress.
With regulatory clarity improving globally, cryptocurrency and tokenisation are becoming more widely accepted, particularly in emerging markets where adoption rates continue to rise. Sustainability-linked projects are also driving infrastructure investments, with Dubai leading these efforts regionally.
Dubai’s unique position as a global hub for alternative investments combines the transparency and investor protections of established financial centres with direct access to high-growth emerging markets. Through its adaptive regulatory framework, world-class infrastructure, and vibrant ecosystem, DIFC is connecting global capital with regional opportunities and propelling Dubai to the forefront of the alternatives landscape.
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The Centre now hosts more than 440 wealth and asset management firms, including 85 hedge funds—69 of which manage over $1bn—making it the largest cluster of alternative investment and asset management firms in the region. DIFC’s offerings, such as Special Purpose Vehicles (SPVs) and dedicated family office structures, provide flexibility and clarity for investors managing complex cross-border portfolios.
Supporting the growth of fund managers, the DIFC Funds Centre offers purpose-built office spaces, collaborative environments, and advanced digital infrastructure, positioning Dubai as a launchpad for alternative investment management.
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.”
The report was officially launched at the Fixed Income Alternatives Conference – Dubai, hosted by DIFC in collaboration with DealCatalyst. The event, the first of its kind in the emirate, gathered leading global investors, sovereign wealth funds, asset managers, banks, and financial experts to explore strategies shaping the future of fixed-income and alternative investments.
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