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Investors' interest intensifies in hedge funds as countries compete for business

With vast sums looking for attractive investment opportunities, the Middle East is ripe for hedge fund development. While there are significant challenges still to overcome, liberalisation and the development of viable financial service centres are pushing the region to the forefront. Stephen Quigley reports

Modern financial centres in some Middle Eastern countries are attracting investment activity. However, despite the wealth of the region, hedge funds are viewed as a niche sector which has not yet captured the full attention of investors.

Most managers continue to domicile their funds in jurisdictions like the Cayman Islands and the British Virgin Islands, as well as the Channel Islands in Europe

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