Asian hedge fund firm Arrow Point has secured a license from the Dubai Financial Services Authority this week as part of its strategy to expand into Dubai by opening an office with 25 staff members, according to Bloomberg.
The company, which manages assets worth $1.5 billion, aims to complete this expansion by mid-year, joining a growing trend of Asian hedge funds establishing a presence in the emirate. Sources indicate that the firm, led by Jonathan Cheung, the former co-CEO of Millennium Management in Asia, has relocated its Head of Trading, Andrew Fryer-Sanders, to Dubai to oversee the new office.
The office intends to attract European investment professionals specializing in Asian market trading, while also hosting operations and support teams, leveraging Dubai’s strategic location that links Asian, European, and American time zones.
Arrow Point joins a long list of Asian investment firms that have recently expanded in Dubai, including Diamond Asia Capital and RV Capital Management, as the emirate transforms into a regional hub for the hedge fund industry.
The number of hedge funds operating in Dubai’s financial district has surpassed 100, following the establishment of offices by major global firms like Baron Capital Management and Blockcrest Capital Management, while companies such as Citadel, led by Ken Griffin, and Milkart Asset Management have announced similar expansion plans.
Dubai and nearby Abu Dhabi attract global investment firms due to several factors, most notably the absence of personal income tax, business-friendly regulations, and easy access to significant capital from sovereign wealth funds.
Arrow Point has its primary offices in Singapore and Hong Kong and follows a multi-strategy model akin to industry giants like Millennium and Citadel. It received backing from the Canada Pension Plan Investment Board, Blackstone, and a unit of Temasek Holdings at its inception, with its hedge fund set to begin trading in July 2024.