Dubai is reinforcing its position as a leading financial center as global alternative assets under management (AUM) surpass $20 trillion, according to a new report by the Dubai International Financial Centre (DIFC).

The study, The Future of Alternative Investments, the fifth edition of DIFC’s Future of Finance series, highlights how the emirate is channeling global capital into high-growth opportunities across emerging markets.

Once considered niche, alternative investments have become mainstream, attracting institutional investors, high-net-worth individuals, and family offices seeking diversification, inflation protection, and returns uncorrelated with traditional markets. Key asset classes include private equity, private credit, real estate, infrastructure, hedge funds, and digital assets.

In Dubai, innovation-driven sectors such as artificial intelligence, sustainable infrastructure, and digital assets are spearheading economic growth. As regulatory frameworks evolve, cryptocurrencies and tokenization are gaining broader acceptance, while sustainability-linked projects fuel new demand for infrastructure investment.

DIFC is now home to more than 440 wealth and asset management firms, including 85 hedge funds — 69 of which each manage over $1 billion in assets.

“Emerging markets are a compelling frontier for alternative investments, backed by growing infrastructure needs, adoption of digital assets, and evolving innovation and sustainability agendas,” said Salmaan Jaffery, Chief Business Development Officer at DIFC Authority. “Dubai, specifically, has positioned itself as a strategic gateway for investors seeking to capitalize on the next era of growth.”