Verition Fund Management is looking to extend its office lease in Dubai, underlining the emirate’s importance to the firm’s long-term strategy, despite an ongoing regional conflict now in its fourth week, according to a report by Bloomberg.

The multi-strategy hedge fund, which manages more than $14bn, is in the process of extending its lease by five years and expects to expand its presence in the Middle East, according to a spokesperson. Verition employs around 50 staff in Dubai and secured its local licence in 2023.

The move contrasts with Millennium Management, which is exploring options to relocate some Dubai-based employees who no longer wish to remain in the region, while maintaining an office in the emirate.

Dubai and Abu Dhabi have emerged as major global hubs for hedge funds in recent years, attracting leading asset managers with a combination of zero personal income tax, business-friendly regulation and a time zone spanning Asian, European and US markets.

Firms including ExodusPoint Capital Management and Balyasny Asset Management have established operations in the region, although the conflict risks slowing that momentum.

Since the outbreak of hostilities, some firms have allowed UAE-based staff to work remotely or temporarily relocate. However, much of the country remains operational, with offices adopting flexible working arrangements.