Capital shift to Private markets: Dubai solidifies position as a global private wealth hub for MEASA region
The Dubai International Financial Centre (DIFC), the leading global financial hub for the Middle East, Africa, and South Asia (MEASA), has released the fourth edition of its Future of Finance Report series, titled Shift to Private Capital. The report explores how the rapid growth and globalisation of private wealth are transforming financial markets while strengthening Dubai’s position as a prime destination for high-net-worth individuals, family offices, and private capital investors.
Key Findings
- Public market listings are shrinking and concentrating
Since 1996, the number of publicly listed stocks in the US have nearly halved, while a small group of major tech companies now hold a record share of equity market wealth. Increasing regulatory demands and the emphasis on short-term returns have constrained innovation and long-term value creation, prompting both companies and investors to turn toward private market alternatives.
- Traditional diversification may no longer work
In recent years, equities and bonds have moved in tandem, undermining the effectiveness of the traditional 60/40 portfolio in a shift that urges investors to explore new approaches to portfolio management.
- Private markets are growing
Assets under management (AUM) in private markets are expected to surpass USD 30 trillion by 2030, driven by investor demand for stable growth opportunities uncorrelated with broader market fluctuations. Superior risk-adjusted returns, regulatory reforms and innovative structures are further broadening the appeal of private markets beyond conventional institutional investors.
- Emerging markets are viable destinations for private capital
As traditional western economies face slower growth and pressure on public finances, emerging markets are stepping in to attract investors with higher growth rates, improved market infrastructure and an ambitious innovation agenda.
- Global wealth is rising extensively and moving across borders
Global private wealth has risen to an estimated USD 471 trillion, marking a historic high, while growing eight times faster than public wealth over the past few decades. This expanding pool of wealth is actively seeking jurisdictions offering stability, regulatory clarity and opportunity.
- Institutional investors are shifting strategy
Guided by long-term vision and significant capital reserves, institutional investors are venturing beyond the confines of traditional asset classes, and seeking return from wider sources of return and driving increased allocation to alternative assets.
- The Great Wealth Transfer is redefining priorities
Younger heirs, set to inherit trillions in the coming decades, are seeking hyper-personalised, tech-powered and sustainability-focused wealth management solutions that are aligned with their distinctive goals and values and deliver the best investment outcomes in private markets.
- Financial hubs thrive when combining the discipline of developed markets and the dynamism of emerging ones
Strong market structures, transparent regulation and robust governance provide the stability and predictability investors seek. While entrepreneurial energy and ambitious growth mandate a younger, more risk-tolerant demographic to fuel innovation and speed. This interplay fosters an environment where creativity is reinforced by institutional strength, enabling capital to flow confidently into high-growth sectors. Dubai exemplifies this blend, pairing advanced financial infrastructure with an entrepreneurial culture shaped by its youthful population and strategic growth ambitions.
Global pivot to private wealth
With the balance of global finance tilting toward private markets, forecasts suggest private market assets to exceed $30 trillion by 2030 as investors look for more reliable, higher-yielding opportunities. Whereas, global private wealth has reached a record $471 trillion, having grown by more than $340 trillion since 1995, a rate eight times faster than the expansion of
public wealth over the same period reinforcing this shift.
A defining feature of this new era is the $124 trillion intergenerational wealth transfer set to take place in the next two decades. Younger heirs are placing greater emphasis on technology, sustainability, and impact, fuelling demand for tailored wealth solutions and advanced private capital platforms
Dubai’s private wealth advantage
Dubai has emerged as the region’s leading global hub for private wealth by offering the institutional strength of established markets with the dynamism of emerging ones. In 2025, the city climbed to 12th place in the Global Financial Centres Index (GFCI), recognised alongside London, New York and Paris for its extensive financial capabilities.
DIFC is central to this growth. As of H1 2025, it is home to 7,700 active companies, a 25% year-on-year increase. The ecosystem now includes over 440 wealth and asset managers, 85 hedge funds, a strong cluster of private equity and venture capital firms and 1,035 family-related businesses.
The Centre is home to a significant portfolio of companies who have chosen DIFC and Dubai as their regional home to support the growth of private markets.
Leadership Insights
Salmaan Jaffery, Chief Business Development Office at DIFC Authority, said: “The shift to private wealth is one of the most powerful forces shaping global finance today. DIFC is proud to be positioning Dubai at the forefront of this tilt shift, offering global investors a secure, innovative gateway to USD 8trn of regional wealth and a trusted platform to preserve and grow wealth across generations.”
This blog is for informational purposes only and does not constitute legal or regulatory advice. The information provided has been compiled from publicly available sources, and while we have made every effort to ensure its accuracy and relevance at the time of publication, we do not guarantee its completeness or applicability to specific situations. Readers are encouraged to seek independent professional advice before making any decisions based on the content herein.
