Deeper shifts are unfolding in the Gulf as capital, clients and credibility take root
Lighthouse Canton
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The Gulf is undergoing a financial transformation. Once a stopover for global finance, Dubai—and the broader Middle East—is rapidly emerging as a destination in its own right. Structural reforms, demographic shifts, and a strengthening regulatory backbone are reshaping how capital and talent move across the region. The changes offer a window into the Gulf’s next chapter—and firms already on the ground are adjusting course.
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NEW RULES, NEW SIGNALS
What’s changed?
Behind Dubai’s fast-moving appeal is a slate of regulatory reforms aimed at making the city competitive not just on paper, but in practice. The Dubai Financial Services Authority (DFSA) has evolved into what some see as a peer to leading global regulators.
“Today, the DFSA operates at a level on par with the world’s most sophisticated regulatory regimes,” said Prashant Tandon, Chief Executive Officer & Managing Director, UAE, at Lighthouse Canton.
As an example he pointed to growing parallels with Singapore, where smart regulation helped accelerate asset inflows and fund structures. The UAE is now exploring similar frameworks, including a regime comparable to Singapore’s Variable Capital Company (VCC) structure and a fund management registration model akin to the city-state’s RFMC scheme.
This regulatory uplift is backed by institution-building initiatives, such as a robust foundations regime and a dedicated family office practice wing at the DIFC—tools designed to attract long-term wealth management activity into the region.
Those changes don’t exist in a vacuum.
Broader policy shifts—from plans to double the population to more open immigration policies—signal long-term intent to embed global financial activity in the city. The government has also relaxed social norms, such as cohabitation laws, and is diversifying into new sectors.
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FROM GATEWAY TO GLOBAL BASE
Dubai’s role in global finance is also being redefined by momentum. The post-pandemic period has made the region not just a bridge, but a base.
“Earlier, having a presence in Dubai and Middle East was optional. Today, for serious platforms, it’s almost mandatory,” Tandon shared.
Recent data supports this sentiment. According to DIFC’s 2023 annual report, the number of active registered companies in the centre rose to 5,523 during 2023, a significant 26% year-on-year boost from 4,377 in 202, while assets under management surged past USD 450 billion.
New capital is flowing from South Asia, Greater China, and parts of Europe, with different motivations: for Indians, infrastructure and connectivity; for Chinese families, geopolitical considerations; and for Western firms, proximity to growth markets.
But the real shift is qualitative: it’s not just deal origination anymore. Firms are building operational desks, setting up asset management teams, and embedding local booking platforms.
“It’s not just a place where you route business—it’s where you base it,” said Tandon. “What we’re seeing now is real operational presence being built,” he added.