Bas Kooijman; Rising Hedge Fund Activity Supports D33 and Elevates UAE Economy

(MENAFN- Atteline) * DIFC welcomed 10 new hedge funds in 2023 and saw 125% Y-o-Y growth in its number of hedge fund managers
* The UAE’s private wealth is estimated at $996 billion and poised to grow further with the number of HNWIs expected to rise 40% by 2031
* The Middle East accounts for the highest proportion of sovereign wealth held in hedge funds globally

Dubai, UAE – 25 September 2024: Bas Kooijman, CEO and Asset Manager of DHF Capital S.A., highlights the UAE’s growing hedge fund sector as a significant driver of the country’s economic expansion. In 2023, the Dubai International Financial Centre (DIFC) authorised ten new hedge funds, contributing to a one hundred and twenty-five per cent year-on-year increase in hedge fund managers establishing operations in the region1 from the previous year. According to Bas, this growth serves as a catalyst for the recently announced DIFC Funds Centre2.

Home to over 72,000 millionaires, Dubai’s wealth landscape is expanding rapidly. The number of high-net-worth individuals (HNWIs) in the UAE is projected to grow by forty per cent by 2031, boosting investment activity and reinforcing Dubai’s appeal as a financial hub3. The UAE’s growing reputation as a hedge fund haven continues to attract global investors, with the DIFC Funds Centre created to meet this demand and support ongoing growth in line with national initiatives such as the Dubai Economic Agenda (D33).

Bas explained: “Hedge funds bring substantial international capital into the region, enhancing sectors like real estate, technology, and infrastructure. Their investments not only support economic diversification but also contribute to job creation in high-value industries. Moreover, hedge funds boost market efficiency through their sophisticated strategies, fostering a resilient financial system that aligns with Dubai’s ambition to become a leading global business and innovation centre under D33.”

Hedge funds are playing a crucial role in diversifying the UAE’s economy, particularly through innovation and emerging sectors. Currently, the Middle East holds the highest proportion of sovereign wealth invested in hedge funds globally. While the region accounts for less than 1% of global hedge fund assets under management (AUM), the market is expanding rapidly, with thirteen of the world’s top 100 hedge funds now having offices in DIFC. Nearly 40 hedge funds established in the region manage at least $1 billion in assets4.

“In less than two decades, Dubai and DIFC have become the leading investment hub and financial centre for the Middle East, Africa, and South Asia (MEASA). The growing concentration of hedge fund activity will only further strengthen the UAE's financial ecosystem. DIFC hosts 300 wealth and asset management firms and is the largest market in the region5. Furthermore, 50 companies conducting hedge fund activities are registered at DIFC, and close to 40 manage at least $1 billion in AUM6,” Bas added.

The growing presence of hedge funds in the country has the UAE on track to continue attracting wealth, talent, and financial innovation, particularly in Dubai. With Bas facilitating portfolio diversification for several HNWIs and UHNWIs both locally and abroad, hedge funds are a major component of his company’s proven allocation strategy, with over $76 million in AUM7 currently under management. Investors who have partnered with him since the strategy’s inception five years ago have witnessed a minimum average ROI of 110%, effectively more than doubling their initial investment, with the conservative low-volatility fund returning sixty consecutive months of positive returns.

-ENDS-

About Bas Kooijman:

Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A, a securitisation firm for financial services which he co-founded in 2020. Entrepreneurial from a young age, Bas has worked in the technology industry, building a telecom company, and later Brokerteam, a wholesale telecom company. In 2015, he sold the latter and transitioned into finance. Over the past seven years, Bas’ expertise as a professional trader has built wealth for countless individuals and companies. In his pursuit of making wealth creation more accessible and affordable for all, he has also become a published author of “Trading and Investing” to accelerate this vision.

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