Starwood Capital Group has reportedly received approval to operate from the Dubai International Financial Centre (DIFC), marking a significant expansion for the alternative asset manager.
Starwood Capital (DIFC) Limited received the authorisation on 17 October, as per a document accessed by Bloomberg.
The firm is currently in the process of hiring personnel in the Gulf region and may consider deploying capital there.
This region is a vital source of capital for large alternative asset managers, with the UAE’s sovereign wealth funds and high-net-worth investors being key contributors.
As political leaders in the region are looking for inward investment, there is increasing pressure on firms raising capital to also consider deploying it locally.
Dubai’s property market is experiencing a boom, attracting high earners with its low taxes. International investors, including Brookfield Asset Management, are actively participating by constructing and selling office towers, acquiring warehouses, and planning high-end homes. This environment presents opportunities for firms like Starwood Capital to expand their operations, reported the media outlet.
Starwood Capital, with a portfolio exceeding $120bn in assets under management and a workforce of 7,000 employees, operates from 18 offices across the globe.
While its presence is established in major cities such as Amsterdam, Hong Kong, London, and Tokyo, the company has yet to enter the Gulf region. However, its recent move to establish a base in the Dubai International Financial Centre (DIFC) signifies its inaugural venture into this rapidly growing market.
Founded by billionaire CEO Barry Sternlicht in 1991, Starwood Capital has been increasing its investments in data centres. This year, the firm raised $2.8bn for its real estate debt funds in the US, Europe, and Australia.
In June, it led a group of investors in the $7bn privatisation of Hong Kong-listed warehouse operator ESR Group.
