Dubai Seeks to Attract Hedge Funds
As Dubai remains on its mission to become the capital of the Islamic economy, it is seeking out hedge funds as well as other investment managers. And it has already attracted at least one well-known hedge fund manager, Ahmad Zuaiter, formerly with Soros Fund Management. He apparently chose Dubai after also considering London and New York. Dubai now houses three hedge funds, including the two funds Zuaiter has brought to Dubai. Those funds, VY Capital Management and Jadara Capital Partners, benefit from Dubai's central location, according to Zuaiter. Of course, the UAE's zero tax rates and comparatively low rents (averaging under $100/sqft) don't hurt the business proposition either.
Zuaiter's hedge funds focus on frontier markets like Nigeria, Kenya, Vietnam, and Saudi Arabia.
It remains to be seen how many hedge fund managers share Zuaiter's enthusiasm for Dubai and it's proximity to political instability and it's frequently blistering temperatures. So far, Dubai has attracted approximately 150 money managers.