Financial
PRIVATE EQUITY, VENTURE CAPITAL & ALTERNATIVES: DUBAI’S SHIFT IN ASSET ALLOCATION
Attributed to: Shivansh Rachit, Founder and Chairman at Hedge & Sachs Financial Consultations
Dubai is accelerating into a new phase of capital strategy, where private equity, venture capital, private credit, and alternative investments are reshaping how institutional and private wealth investors build long-term portfolios. Over the last two months, a surge of policy announcements, DIFC reports, and private markets activity has signalled a decisive shift: alternatives are no longer supplementary, they are becoming central to Dubai’s investment landscape.
Dubai’s Private Wealth Ecosystem Expands
A major inflection point came with the DIFC Future of Alternative Investments Report, which revealed that 52% of regional HNWIs increased their allocations to alternatives in 2025, seeking stronger yield, inflation-resilience, and diversification.
The report highlights that Dubai now sits at the crossroads of a US$20 trillion global alternative asset opportunity, with inflows from Europe, Asia, and Africa accelerating throughout October and November.
Dubai’s regulatory clarity, tax efficiency, and reputation as a global wealth hub continue to attract institutional investors and family offices who are shifting their asset base to the DIFC.
Private Equity: Deal Pipelines Strengthen Across Growth Sectors
Private equity activity has expanded in late 2025, with new regional and global funds establishing structures in the DIFC. The strongest flows are seen in sectors such as clean energy, logistics, healthcare, and AI-driven enterprises, all highlighted during Dubai’s October private markets briefings.
Fund managers are not only deploying capital in the UAE; they are anchoring their global PE operations in Dubai, citing a stable regulatory environment and seamless access to emerging markets across the Middle East and Africa.
Private Credit: The Fastest-Growing Alternative in the UAE
Private credit has surged as companies across the GCC seek non-bank financing. At the Dubai Fixed Income & Alternatives Conference in October 2025, investors highlighted private credit as one of the strongest performing alternative asset classes this year.
Higher yields, lower volatility, and asset-backed structures are pushing wealth managers to rebalance portfolios away from public markets. As global banks tighten lending conditions, Dubai’s private credit ecosystem is scaling rapidly, attracting global institutional capital.
Venture Capital: Maturing Despite Global Slowdowns
While global VC markets remain cautious, the UAE continues to grow its venture landscape. New VC licensing frameworks introduced in late 2025 have made the DIFC a preferred destination for global funds.
Founders from Europe and Asia are relocating to Dubai due to stronger capital availability, tax advantages, and access to regional growth markets. Fintech, AI, Web3, healthtech, and cloud-infrastructure startups are securing the majority of new funding rounds.
Infrastructure, Real Assets & The Rise of Long-Term Alternatives
Investors are increasing allocation to infrastructure funds, digital assets, renewable energy projects, and logistics hubs are all viewed as inflation-resistant and high-duration investments.
The UAE’s national energy transition strategy and regional megaprojects (transport, logistics, decarbonisation) make infrastructure and hard-asset investments highly attractive for pension funds, sovereign investors, and UHNW families.
Regulatory Strength: DIFC as a Global Alternatives Hub
What distinguishes Dubai’s alternative asset surge is not just investor appetite, it is the regulatory ecosystem accelerating it.
During October and November, the DIFC expanded its regulatory pathways for private funds, alternative asset vehicles, and cross-border structures. Global wealth platforms highlighted Dubai as one of the world’s most sophisticated jurisdictions for private markets, offering governance clarity, secure fund domiciliation, and international interoperability.
This regulatory sophistication is reinforcing investor confidence, drawing in new global GPs, private credit platforms, and venture firms.
A Structural Shift in Portfolio Strategy
Over the past few months, the message from Dubai’s financial ecosystem has been consistent and clear: the future of wealth in the UAE is alternative-led.
Traditional stocks and bonds remain relevant, however they are no longer the core of portfolio construction. Instead, private equity, private credit, venture capital, infrastructure, and real assets are becoming the foundational instruments of long-term investing.
As Dubai strengthens its regulatory architecture, expands ecosystem depth, and attracts global capital flows, the emirate is positioning itself as one of the world’s leading hubs for alternative assets where sophisticated capital strategies and future-focused portfolios converge.
Financial
MidChains and Standard Chartered establish strategic banking partnership
MidChains FZE, a digital asset platform licensed by the Virtual Assets Regulatory Authority (VARA) to provide broker-dealer services to retail, institutional and qualified investors, today announced a strategic banking partnership with Standard Chartered.
Under the partnership, Standard Chartered will support MidChains with a range of banking services, including fiat settlement capabilities, segregated client money accounts, and correspondent banking. These services will power MidChains’ day-to-day operations and enable efficient settlement.

Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan, Standard Chartered, said: “The UAE has established itself as one of the world’s leading regulatory environments for digital assets and a global centre for financial activity. That creates a strong setting for regulated digital asset firms and established financial institutions to work together. Our partnership with MidChains puts that opportunity into practice, with Standard Chartered providing the banking services that support its institutional activity, including fiat settlement, segregated client money accounts and correspondent banking.”
Basil Al Askari, Chief Executive Officer, MidChains, added: “Institutional capital moves continuously between traditional and digital markets, and the infrastructure supporting that activity must keep pace. For institutional investors, digital asset services need to connect with the banking system that supports their wider activity. Our partnership with Standard Chartered brings that connection to MidChains’ institutional services, supporting clients as capital moves between traditional and digital markets.”
By bringing a VARA-licensed digital asset platform together with an established international bank, the partnership connects institutional digital asset activity with the banking infrastructure behind fiat settlement. It is a practical example of how the UAE’s regulated financial ecosystem can link innovation with established banking capabilities to support international business.
Financial
Ukrainian Business Council elects new Board to advance Ukraine–UAE trade and investment
The Ukrainian Business Council in the UAE (UBC) elected a new Board at its General Assembly at Dubai Chamber, where members also approved a 2026–2028 strategy to strengthen trade and investment between the two countries.
Over the next three years, the Council plans to extend its trade delegation programme to new markets, deepen ties with international business councils and launch structured investment dialogues to connect UAE investors with opportunities in Ukraine. The UAE–Ukraine Comprehensive Economic Partnership Agreement (CEPA), Ukraine’s first agreement of its kind with a Gulf state, came into force in July 2026 and removes or reduces customs duties on most goods traded between the two countries.
“Ukrainian companies are achieving real results in the UAE, and we see significant untapped potential for Emirati business and investment in Ukraine. Our role is to build on this momentum: to connect the right partners, support companies at every stage of their growth and help investment flow with confidence in both directions.” commented Olena Shyrokova, President, Ukrainian Business Council in the UAE.
In 2025 and 2026, UBC led business delegations to Vienna, Qatar, Ras Al Khaimah, Fujairah, Oman and the Seychelles. It also ran webinars on UAE market entry for Ukrainian companies and business associations and supported the Ukrainian IT delegation at GITEX. Since its founding in 2016, the Council has established a dialogue with the Federation of UAE Chambers and chambers of commerce across the Emirates.
Under the new strategy, UBC will work with international business councils to give Ukrainian companies access to wider business networks in the Emirates and use the UAE as a base for trade missions to the Gulf, Asia and Africa. The Council will help Ukrainian companies in the UAE with registration, investment and expansion. It also plans to help Ukrainian investors find opportunities in the Emirates, attract Emirati investment to support Ukraine’s recovery and develop arbitration and investor protection mechanisms to build confidence in cross-border agreements.
The Council sees the strongest potential in sectors where Ukrainian strengths meet Emirati priorities: agri-food and food security, IT and digital services, renewable energy, logistics and port infrastructure, and post-war reconstruction. These are also the areas both governments have highlighted for future cooperation.
UBC works closely with the Embassy of Ukraine in the UAE and with H.E. Dr Oleksandr Balanutsa, Ambassador Extraordinary and Plenipotentiary of Ukraine to the UAE. The Council took part in the Cities Unite: Cultural and Business Exchange between the UAE and Ukraine dialogue at Expo City Dubai, initiated by H.E. Reem bint Ebrahim Al Hashimy, UAE Minister of State for International Cooperation, and the Embassy of Ukraine.
The Council will continue to support Ukrainian businesses and the wider community, helping companies expand into the UAE and encouraging UAE investment in Ukraine. Businesses, investors and potential partners interested in working with the Council can get in touch by reaching out to info@ukrainianbc.org.
Financial
UAE primed to convert FDI inflows into economic velocity, says new report
The UAE has built one of the world’s most successful models for attracting foreign direct investment (FDI) and is now positioned to convert that capital into lasting innovation and skill development, according to a white paper from White Paper Media Consulting (WPM), a UAE-based strategic research house that is shaping business and policy conversations in the region using credible datasets and analytical tools.
Beyond the Numbers: The Transformative Intangible Impact of FDI argues that the real returns on FDI now lie in the intangible value it embeds within host economies, with the UAE a defining case study. The paper contends that the next phase will go beyond investment volumes, number of projects, and job creation and be measured also in patents generated, skills transferred, data ecosystems built, and clean technologies commercialized, among other things.
Official data shows that the UAE attracted more than $48.3 billion in FDI inflows in 2025, capturing 3.1% of global flows. Greenfield FDI reflected both volume and capital depth, with 1,562 projects announced for a combined $34.1 billion in capex, or 1.8% of the global total.
The country’s ability to attract investment reflects its competitiveness as a hub for operational efficiency, supply chain integration, and regional headquarters functions. The UAE has deliberately repositioned its FDI strategy toward knowledge-intensive and future-oriented sectors, recognizing that long-term competitiveness is increasingly driven by innovation, digital capabilities, and human capital. This approach aligns closely with the OECD FDI Qualities framework, with tangible examples across each dimension: including the innovation and competitiveness, digitalization and technology adoption, sustainability and clean energy investments for climate targets, and human capital and local expertise.
Drawing on the OECD framework and benchmarks from Ireland, Singapore, Israel, Costa Rica, and Malaysia, the report documents how leading economies have shifted focus from the volume of capital they attract to the long-term value it creates. In the context of UAE, this is visible in the shift in the country’s policies across phases that begin with the Foundation Phase from 1985 to 2005 of Market Liberalization and Infrastructure Creation, culminating in the current positioning as Global Capital and Technology Hub.
The shift to value in the UAE has made a huge difference to the job-creation intensity of FDI. Approximately 2,816 jobs were created in the UAE for every billion dollars received in greenfield FDI in the five years from 2019 to 2023, compared to 2,265 in the previous five years. This is higher than the OECD average of 2,318 and 1,880 respectively.
The paper identifies seven ongoing policy shifts that deepen the qualitative impact of FDI in the UAE, including extending spillovers from free zones into the mainland economy, prioritizing R&D-intensive investment, embedding skills transfer requirements in major projects, and positioning the country as a global leader in IP creation and data governance.
Yazad Darasha, co-founder and director, WPM, said: “As trusted partners of public and private sector clients, we have tracked the UAE’s investment story for years, and the pattern is unmistakable. The country has positioned itself at the front of the race for capital. What we set out to map in this paper is the harder, more valuable contest: converting investment into skills, technology, and economic velocity. It reflects what we do at White Paper Media, turning complex evidence into decisions leaders can act on.”
Dr. Joachim Arnold, CEO of OCO Global, which advises governments and businesses on attracting FDI, building competitiveness, and strengthening economic resilience, and contributed to the study, said: “The UAE’s infrastructure, free zones, and business-friendly environment helped attract companies and drive growth. The National Investment Strategy 2031 signals a more deliberate focus on investment that raises productivity and embeds benefits into the wider economy. The question is no longer only how to attract capital, but how investment creates lasting value, strengthens existing companies, and helps domestic businesses upgrade their capabilities.”
The paper highlights live examples of this transition already underway, among them the Space42 and ICEYE joint venture building satellites on UAE soil, Microsoft’s $15.2 billion investment plan with a commitment to skill one million people, and the UAE’s $30 billion pledge to the Alterra climate fund.
-
Trending1 year agoOPPO A6 Pro 5G Review: Reliable Daily Driver
-
Tech News2 years agoDenodo Bolsters Executive Team by Hiring Christophe Culine as its Chief Revenue Officer
-
VAR2 years agoMicrosoft Launches New Surface Copilot+ PCs for Business
-
Automotive2 years agoAGMC Launches the RIDDARA RD6 High Performance Fully Electric 4×4 Pickup
-
VAR11 months agoHuawei Nova 14 Pro Review: Where Camera Excellence Meets Ecosystem Evolution
-
Tech Interviews3 years ago
Navigating the Cybersecurity Landscape in Hybrid Work Environments
-
Hospitality2 years agoGulfood 2025 30th Edition Kicks Off Today, Setting New Benchmarks in F&B Growth and Innovation
-
Tech News1 year agoNothing Launches flagship Nothing Phone (3) and Headphone (1) in theme with the Iconic Museum of the Future in Dubai


