Dubai Rapidly Ascends the Ranks of Global Financial Hubs as Private Firms Establish UAE Offices

Private-market firms flock to the UAE. Bloomberg reports that companies managing over $700 billion in assets are following the lead of other similar companies and establishing offices in Abu Dhabi and Dubai. To name a few, Baron Capital, EQT, Eurazeo, Pollen Street, and Silver Point are among the leaders.

Setting offices in Abu Dhabi are France’s Eurazeo, UK-based Pollen Street Capital, and Sweden’s EQT AB. Meanwhile, Baron Capital Management from New York and Silver Point Capital Management based in Greenwich, Charlotte, have placed their offices in Dubai, signaling a significant shift in global financial dynamics.

In detail, Bloomberg’s report says that these firms no longer see the Gulf as a fundraising source, and are pivoting to deploy investment professionals to the UAE, specifically Abu Dhabi and Dubai, to actively seek and invest capital in the region. The shift is a result of high interest rates and slow deals in the US and Europe, pushing firms to seek faster-growing markets.

The UAE’s continuous success in key economic sectors over the last few years has allowed the nation to rise as a private equity hub. Its rapid growth promises safe investments for the long term, allowing for the growing presence of private equity firms in the UAE, caused by a wave of expansion by hedge funds and other alternative asset managers.

The entry of these specific private firms draws more capital to the UAE. In detail, EQT, a purpose-driven global investment organization, has over $322 billion in assets under management. Similarly, Eurozeo has over $43.4 billion, while Pollen Street oversees over $7 billion, and Baron Capital has about $41 billion. Lastly, Silver Point Capital deployed close to $155 billion.

Dubai Fast Establishing as a Financial Hub

Dubai is gradually establishing itself as a global financial hub, with an increasing number of multinational banks, asset managers, and investment businesses headquartered here. The city's business-friendly legislation, strong financial infrastructure, and strategic position have resulted in an ecosystem that competes with global leaders like London, Singapore, and Hong Kong.

The city’s tireless efforts to make the Emirate a global financial and real estate hub have led to incredible growth in terms of ROI and FDI. In detail, the UAE ranked 10th globally for foreign direct investment (FDI) inflows and 2nd in the number of newly announced greenfield FDI projects in 2024.

The UAE has been breaking records in FDI inflows in 2025. Specifically, it brought in $45.6 billion in 2024, showcasing a 48% increase year-on-year and accounting for 37% of all FDI inflows into the Middle East and North Africa. Additionally, annual FDI inflows to the UAE rose from $8.6 billion to $45.6 billion between 2015 and 2024, representing a 10.5% compound annual growth.

The UAE's tailored national strategies help to sustain this investment momentum. By 2031, the National Investment Strategy 2031 seeks to double foreign direct investment inflows to AED 2.2 trillion. At the same time, programs such as Dubai's Real Estate Strategy 2033 help to build an intelligent, sustainable, and investor-focused environment that improves the city's financial standing internationally.

Whether through increased capital deployment, institutional relocation, or the private firms’ expansion into the UAE, Dubai is building the financial infrastructure and investor confidence necessary to become a dominant player in the global financial system.

Prime Commercial Real Estate Set to Surge

As international financial firms establish a foothold in Dubai and Abu Dhabi, office space demand in Dubai, especially Grade-A office space, is expected to climb in tandem, especially in prime business districts like DIFC and Downtown Dubai.

Dubai and the UAE are quickly establishing themselves as a global financial hub. This success is attributed to the fact that several key economic sectors have been demonstrating strong performance, resulting in the growth of greenfield FDI projects in the country.

With each sector drawing billions every year, financial growth has come seemingly naturally to the UAE. These sectors include software and IT services, business services, renewable energy, coal, oil, and gas, real estate, and higher education.

Each sector is expected to grow even further as sectors influence one another. For example, the impact of the inflow of international financial firms in Dubai affecting demand in the commercial property market. Other sectors are expected to grow further through similar relationships.

Residential Market to Benefit From Relocations

As global firms continue relocating talent to the UAE, particularly high-earning professionals, the demand for mid-to-high-end residential housing is expected to follow an upward trajectory.

To highlight, in Q1 2025 the Dubai property market transactions rose by 23%. Both off-plan and ready properties have garnered significant interest from local and foreign investors.

The ready market, comprising transactions for completed and handed-over projects, made up 31% of transactions. Meanwhile, off-plan sales continued to be the cornerstone of transaction activity, representing 69% of all deals in Q1 of 2025.

As developers capitalize on strong market demand, the same quarter saw the residential market supply push out over 30,000 units, mostly apartments. This figure shows double the volume recorded in the same period last year, highlighting a very positive Dubai residential market outlook.

As corporate relocations continue and global firms deepen their presence in Dubai, residential demand—especially in lifestyle-focused, centrally located communities—is expected to climb further, reinforcing the city’s role as a magnet for international talent and investment.

Dubai Expects Boost to Tier-1 Status

Dubai's rapid economic growth is closing the gap between the Emirate and long-established Tier-1 cities like Singapore and London, helped by its zero income tax policy, investor-friendly regulations, and strategic geographic location.

The rapid growth of several key economic factors, paired with the increased FDI rates, Dubai predicts a heavy increase in capital inflows at an institutional level. This could significantly boost the country’s tier-1 status. When comparing Dubai to global giants such as Singapore, Sydney, London, New York, Hong Kong, and Paris, Dubai holds its own.

According to Driven | Forbes Global Properties’ inaugural ‘Tier-1 City Index’ report, where 28 quantitative indicators grouped into six key categories—Infrastructure, Governance, Economy, Safety, Quality of Life, and Global Appeal—were objectively measured to determine Dubai’s standing, and Dubai secured rank 5 out of the 7 countries.

To elaborate, Dubai ranked 2nd in infrastructure, 3rd in international appeal and 4th in safety & quality of life. Dubai’s world-renowned airport, its robust brand recognition and tourism infrastructure, and high safety levels, paired with strong healthcare infrastructure and quality educational facilities, support the rankings.

Investor sentiments reflect this growing global confidence. While 43% believe currency property prices are fairly valued, 35% feel prices are overvalued, and only 11% feel prices as undervalued. Meanwhile, a few properties stand out more than others for their limited-supply assets; these include waterfront and coastal properties, giving investors a unique property experience.

With all indicators pointing upward, Dubai is well-positioned to elevate its Tier-1 status, fueled by strong fundamentals, continued capital inflows, and sustained investor trust.

UAE Expects Increased Capital Inflows at Institutional Level

The UAE's solid economic foundation, stable regulations, and international investor confidence are attracting institutional capital at previously unheard-of levels. Dubai, in particular, is drawing significant attention from asset managers, private equity firms, and sovereign wealth funds seeking long-term exposure to a high-growth, well-regulated environment.

This increase in institutional interest is also evident in the real estate market, where a variety of options, ranging from ultra-luxury to mid-range housing, appeal to different types of investors. These markets provide scalable, steady returns that fit institutional risk and reward profiles in light of Dubai's growing population and shifting demographics.

Finally, with continuous capital inflows and resilient market dynamics, Dubai is rapidly becoming a fully acknowledged tier-one global financial hub.

For further insights and comprehensive real estate advisory services, please contact Driven | Forbes Global Properties at +971800374836.