Private markets are on track to become the dominant force in global finance, with assets projected to exceed USD 30 trillion by 2030, according to the latest Future of Finance report released by the Dubai International Financial Centre (DIFC).
The study, titled The Shift to Private Capital: The New Private Wealth Hubs, highlights how investor preferences are tilting away from public markets. Rising regulation, concentrated equity wealth, and the search for stable returns are driving both institutions and wealthy individuals toward private equity, credit, and alternative assets.
Key Findings
- Institutional Shift: Pension funds, endowments, and insurers are diversifying heavily into private markets under a “total portfolio” approach.
- Generational Wealth Transfer: More than USD 120 trillion is expected to change hands globally over the next two decades, with younger investors showing a strong appetite for innovation and sustainable investments.
- Sustainability Edge: Private capital in low-carbon and climate-focused assets has outperformed public markets over the last five years.
- Emerging Hubs: The Gulf, East Asia, and India are increasingly attractive due to reforms and innovation-driven growth.
The report underlines Dubai’s growing role as a hub for private capital. DIFC now hosts over 7,700 firms with assets under management reaching USD 700 billion in 2024, up 58% year-on-year. Its mix of regulatory clarity, tax-friendly environment, and geographic reach positions it as a key bridge between established and emerging markets.
Arif Amiri, Chief Executive Officer of DIFC Authority, said the shift represents a fundamental reallocation of capital. “By embracing innovation and uncertainty, Dubai is well placed to capture the opportunities presented by private markets,” he noted.
As public markets narrow in scope and liquidity, private capital is expected to play an outsized role in financing growth, technology, and sustainability worldwide. For Dubai, the trend strengthens its case as a global wealth hub connecting investors to next-generation opportunities.
