SGX considers expansion into Dubai as hedge funds surge in UAE

SINGAPORE: The Singapore Exchange (SGX) is considering expanding its presence into Dubai, driven by the growing number of hedge funds establishing a presence in the United Arab Emirates (UAE).

As more clients relocate to the emirate, SGX is looking to strengthen its foothold in the region, adding to its existing presence in nine other countries, said Lee Beng Hong, head of wholesale markets and platforms at SGX.

According to Bloomberg, he pointed out that the success SGX has seen in the Middle East makes it the “right time” to consider expanding into Dubai. “We are actively looking at that,” he added.

Thanks to government incentives, a favourable time zone, and a low-tax environment, Dubai has become a key destination for hedge funds and financial firms.

Over the past few months, fund managers such as Millennium Management, BlueCrest, and Balyasny Asset Management have all expanded their operations in the city.

Although SGX’s plans for the Middle East are still in the early stages, Mr Lee explained that the initial step would be relocating one of their employees from Qatar to Dubai. However, the firm has not disclosed the number of staff it plans to hire in Dubai yet.

“We go where our clients go,” Mr Lee said. He explained that the plan is to bring in more staff, as smaller offices can make employees feel less connected to the teams developing and designing their products.

Currency trading has shown impressive growth for SGX this year, with four straight months of record trading volumes through August and an average daily volume of about $111 billion.

The company has also gained from increased interest in Asian currencies, particularly after the ripple effect of the Japanese yen carry trade collapse spread across the region. /TISG

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