Dubai is a gateway for investors seeking alternative opportunities

Dubai International Financial Centre (DIFC) on Thursday unveiled its fifth report within its flagship Future of Finance series.

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Titled “The Future of Alternative Investments”, the report highlights the rapid growth of alternative investments globally, with assets under management (AUM) having tripled in the past decade, surpassing $20 trillion. The findings underscore Dubai's rise as a premier gateway for investors seeking alternative opportunities in high-growth emerging markets.

Once considered niche, alternative investments are growing in popularity, with institutional investors, high-net-worth individuals (HNWIs), and family offices expanding allocations.

In turn, growth is being driven by investor demand for diversification, inflation protection, and uncorrelated returns, whereas key asset classes such as private equity, private credit, real estate, infrastructure, hedge funds and digital assets are gaining strategic importance, particularly in emerging markets.

According to the report, emerging markets are now positioned as growth engines for the alternatives industry, catalysed by rapid GDP growth (outpacing developed peers by two to three percent), young populations, and a leapfrogging of legacy systems.

At the same time, emerging markets such as Dubai are offering unique opportunities in innovation-driven sectors such as Al, sustainable infrastructure, and digital assets, placing technological creativity at the core of their economic progress.