American investment firm Cambridge Associates has been granted permission to open an office in the Dubai International Financial Centre (DIFC), Bloomberg has reported. The move marks the firm’s expansion into the Middle East and joins a growing number of global financial players seeking access to the region’s vast private equity. The firm received the license from the Dubai Financial Services Authority (DFSA) on Wednesday, the report said. Cambridge Associates, which works with institutional clients such as charitable foundations, pension plans, university endowments and family offices, had $616 billion in assets under management at the end of last year.
Since its founding in 1973, Cambridge Associates has established itself as a leader in building diversified investment portfolios. The firm has 12 offices worldwide, partners with a network of leading global asset managers, and combines the scale and expertise of a large financial institution with the flexibility and trust of a boutique firm. Cambridge Associates builds tailored portfolios for a range of institutional investors, from educational and healthcare institutions to private clients, foundations and corporations. The opening of an office in DIFC will be the firm’s first foray into the Middle East and complements its existing global presence. More than 400 asset management firms already operate in the free zone.
Cambridge Associates and Dubai International Financial Centre
The DIFC is a 110-hectare special economic zone established in 2004 to serve the Middle East, Africa and South Asia (MEASA) markets. It has its own regulatory and judicial system, separate from the general legal system of the Emirate of Dubai. Companies registered in the DIFC enjoy a 50-year guarantee of zero corporate tax, as well as the benefits of a network of double taxation treaties signed by the UAE with other countries.
The free zone allows 100% foreign ownership of businesses without the mandatory participation of local partners. In addition to financial institutions, DIFC houses retail, hotel and office space, which creates a full-fledged business environment. The successful attraction of family offices and private investors has made Dubai an important point on the global financial map. DIFC alone currently has offices that manage more than $1 trillion in private capital. Abu Dhabi is within a 90-minute drive, where sovereign wealth funds with a total value of more than $1.7 trillion are concentrated, which strengthens the regional financial potential.
Dubai attracts private capital and family offices
According to forecasts by the consulting company Henley & Partners, the UAE will become the most popular destination for millionaires to move to in 2024. Such interest is explained by a favorable tax policy, low crime rate and advantageous geographical location connecting Europe, Asia and Africa.
Cambridge Associates’ new office in Dubai is not only an expansion of its geographical presence, but also a strategic decision dictated by the growing demand for independent asset management in the region. More and more private investors are looking for partners who can combine local presence with global expertise – and this is exactly the role the company aims to play in Dubai’s financial ecosystem.