Greece courts hedge funds as UAE competes

Greece has been reaching out to hedge fund principals after recent UK tax changes. Chris Rokos has switched his tax residency from the UK and is exploring options in Greece. Millennium Management is preparing to open its first Greek office. Verition has flagged interest in establishing a presence. Greek officials are promoting tax incentives, a European lifestyle and a base outside the Middle East conflict zone to attract managers and executives.

The United Arab Emirates remains an alternative destination with deep pools of capital and established finance hubs. Abu Dhabi’s sovereign wealth is about $1.8 trillion and Dubai is home to over $1 trillion in private capital. Dubai’s financial centre registers more than 100 hedge funds, with over 80 funds managing more than $1 billion each. Abu Dhabi Global Market has been developing a parallel cluster for asset managers.

Several firms that are considering Greece already maintain operations in the UAE. Millennium employs more than 100 people in Dubai and has said it will keep that office while it examines other locations for some staff. Verition plans to extend its Dubai lease for five years and expand Middle East operations. Rokos is moving ahead with plans for an Abu Dhabi office while exploring Greece.

Large institutional investors in the UAE have been increasing engagement with hedge funds. Abu Dhabi Investment Authority and other local institutions have stepped up allocations. Private investment groups have taken stakes and committed capital to established managers. Global figures in the industry have set up bases in the emirates, and several major managers have expanded teams and trading operations there.

UAE financial centres and regulators have continued to expand services and offer operational flexibility for firms managing regional risks. Dubai International Financial Centre and Abu Dhabi Global Market provide regulatory frameworks, service providers, counterparties and a talent pool that managers use to run trading, risk and support functions.

Greek authorities are offering tax incentives and marketing the country’s lifestyle and stability. For large hedge funds to operate from any new base, local institutional investors, service firms, experienced staff and regulatory structures must be in place to support trading, custody, compliance and risk management.