Melqart Asset Management Eyes Dubai Expansion Amid Hedge Fund Boom

Melqart Asset Management, a London-based hedge fund founded by Michel Massoud, is on the verge of opening a branch office in Dubai. It is not the only global fund establishing a presence in the emirate.

The company, which oversees $1.4 billion in assets, has applied for a licence to operate in the Dubai International Financial Centre (DIFC), sources close to the matter told a news agency. The firm is expected to open its Dubai operations in the second quarter of the year, including both investment and non-investment staff. A spokesperson for Melqart declined to comment on these plans. The move comes as Dubai continues to emerge as one of the fastest-growing global hubs for hedge funds and asset managers.

Strong Performance Fuels Global Expansion

Established in 2015, Melqart has carved a niche through its event-driven and special situations investment strategy, targeting mergers, restructurings, corporate changes, and sub-investment-grade credit.

The firm’s Chief Investment Officer and founder, Michel Massoud, delivered a record return of 45.1% in 2024 through the Melqart Opportunities Fund, according to sources. A significant portion of the gains came from its special situations trading portfolio, while arbitrage and credit strategies contributed around 40% of the profits.

This strong performance has enhanced the firm’s global standing and provided momentum for expansion, with Dubai emerging as a favourable destination for accessing capital and deal flow in the Middle East.

Dubai Becoming a Global Hedge Fund Centre

Melqart is set to enter a rapidly expanding hedge fund market in Dubai. More than 100 hedge funds have already established operations in the emirate, which is now home to several of the world’s leading investment firms. Notably, Citadel, led by Ken Griffin, is building a strong presence in DIFC. Other major firms, including BlueCrest Capital Management, Baron Capital Management, Point72, Millennium, and Schonfeld, have also set up operations in Dubai.

The emirate has evolved into a key hub for trading, research, and portfolio management activities for global investment firms.

Neighbouring Abu Dhabi is also advancing in this space by attracting top international hedge funds such as Marshall Wace, Brevan Howard, and Arini Capital through the Abu Dhabi Global Market (ADGM). Together, Dubai and Abu Dhabi are positioning the UAE as a leading financial hub connecting Asia, Europe, and the Americas.

Why Are Hedge Funds Choosing Dubai?

Several factors are driving global investment firms to relocate to Dubai:

1. Zero Personal Income Tax
The UAE imposes no personal income tax, making it an attractive destination for fund managers and traders seeking to maximise their earnings.

2. Business-Friendly Environment
The DIFC operates under an independent legal framework based on English common law, offering clear regulations and strong investor protection. Its licensing regime is also efficient and transparent.

3. Strategic Time Zone
Dubai’s geographic location allows firms to engage with Asian, European, and US markets within a single trading day, enhancing global connectivity.

4. Access to Capital
The UAE sits at the centre of a region with one of the world’s largest pools of private capital. Abu Dhabi alone hosts over $1.8 trillion in sovereign wealth funds, including ADIA, Mubadala, and ADQ, while Dubai is home to family offices managing substantial assets.

Talent Attraction and Lifestyle Advantage

Beyond economic incentives, Dubai offers strong advantages in attracting and retaining global talent. The city provides high-quality infrastructure, education, healthcare, security, and an overall elevated standard of living.

Amid intensifying global competition for investment professionals, many hedge funds are now positioning their Gulf operations as long-term career destinations rather than temporary outposts. Several firms have already established dual operations in both Dubai and Abu Dhabi.

A Shift in Global Finance

Melqart’s planned expansion reflects a broader shift in the global financial landscape. Rising costs in London and New York, along with increasing regulatory scrutiny in Europe, are prompting firms to look eastward.

Dubai, in particular, benefits from geopolitical neutrality, economic stability, business-friendly reforms, and a strategic vision to position itself among the world’s leading financial centres.

Currently, DIFC hosts more than 6,000 companies, spanning international banks, asset managers, fintech firms, and insurance providers. Hedge funds are among the fastest-growing segments within this ecosystem.

Melqart Asset Management’s planned entry into Dubai marks another milestone in the emirate’s rise as a premier destination for hedge funds. The firm’s expansion underscores growing demand for access to Middle Eastern capital and reinforces Dubai’s position as a key hub for global asset management.

As more international players enter the market, Dubai’s financial ecosystem is expected to deepen further, supported by strong regulatory frameworks and capital inflows. With momentum building across the sector, the emirate is increasingly cementing its role as a central node in the evolving global investment landscape.