(HedgeCo.Net) CME Group has inaugurated a new office in the Dubai International Financial Centre (DIFC), signaling a targeted push into the burgeoning Middle Eastern derivatives and hedge fund markets. FNLondon
The move comes on the heels of increased hedge fund presence in the region: DIFC reported a jump from ~50 hedge funds to ~85 in just one year, with 69 managing over $1 billion in assets. FNLondon
CME’s regional hub will serve as the gateway for Middle Eastern institutions and global firms to access U.S. derivatives, futures, and clearing services. Sharif Jaghman, relocated from London, will lead operations. The office operates under license from the Dubai Financial Services Authority. FNLondon

The expansion aligns with Dubai’s ambition to become a global financial center, aided by favorable tax regimes, gateway access to GCC sovereign wealth, and a growing concentration of ultra-high-net-worth individuals. Hedge funds have been drawn by these factors, along with capital seeking geographically diversified exposures and regulatory clarity. FNLondon

For CME, this move offers first-mover advantage in a region where derivatives adoption is still underpenetrated. As regional capital flows grow, demand for efficient clearing, global risk access, and liquidity services will likely rise.

The broader narrative: hedge funds are increasingly globalizing, not only in their trades and exposures but in where they locate operations and service centers. With the Middle East’s rising prominence, financial infrastructure—exchanges, market access, clearing—must follow.