LONDON – Singapore Exchange is eyeing expansion into Dubai, drawn by the surge of hedge funds that have settled in the United Arab Emirates.
An influx of SGX’s clients settling in the emirate is strengthening the case for opening a new office, complementing its operations in nine other countries, SGX head of wholesale markets and platforms Lee Beng Hong said in an interview.
“Given the success we’ve had in the Middle East, it’s the right time for us to grow our presence there,” Mr Lee said. “We are actively looking at that.”
A wave of fund managers have flocked to Dubai in recent months, drawn by a slew of government incentives, a favourable timezone and a low tax regime.
Millennium Management, BlueCrest and Balyasny Asset Management are among those that have expanded operations in the city.
While SGX’s strategy in the Middle East is at an early stage, the initial plan is to move a Qatar-based employee to Dubai before adding more people, Mr Lee said.
He did not disclose the number of people SGX is planning to hire.
“We go where our clients go,” Mr Lee said. “The plan is to have more people, we don’t want to have small offices because that means employees are less connected to the functions that are building and designing our products.”
Currency trading has been a particular bright spot for SGX in 2024, with four consecutive months of record volumes through August and average daily volumes of around US$111 billion (S$143 billion).
SGX has benefited from rising interest in the trading of Asian currencies, especially as the impact of the Japanese yen carry trade blow-up rippled across the region. BLOOMBERG