Singapore Exchange Ltd (SGX) is exploring expanding its operations into Dubai, amid an ongoing increase in the number of hedge funds establishing a presence in the United Arab Emirates, according to a report by Bloomberg.

The report cites Lee Beng Hong, SGX’s head of wholesale markets and platforms as saying that the exchange is considering opening an office in Dubai to complement its operations in nine other countries, as more of its clients move to the emirate.

“With the success we’ve had in the Middle East, now is the right time for us to strengthen our presence there,” Lee said in an interview. “We are actively looking into this expansion.”

In recent months, Dubai has seen a wave of hedge fund managers relocate, attracted by government incentives, a favourable time zone, and a low-tax environment. Leading hedge funds such as Millennium Management, BlueCrest, and Balyasny Asset Management have all expanded their operations in the city.

Although SGX’s Middle East expansion is still in its early stages, the initial step involves relocating an employee from Qatar to Dubai, with plans to add more staff over time. While Lee did not specify how many people SGX plans to hire, he emphasised the goal of building a larger presence. “We follow our clients wherever they go,” he said. “Our aim is to have a substantial team because small offices risk being disconnected from the core functions that are developing our products.”