Dubai-based Magellan Capital Holdings Ltd. is gearing up to launch a $700 million multistrategy hedge fund next month, marking one of the largest hedge fund debuts in the United Arab Emirates. The fund will focus on equity and credit strategies, according to Britney Lam, the firm’s head of long-short equities. The scale of Magellan’s launch is significant, especially considering that only 5% of hedge funds worldwide have launched with $500 million or more this year, as reported by industry tracker Preqin. The fund’s seed capital originates from the family wealth of Hassan El Ali, the founder of Zakher Marine International, which was sold to a unit of Abu Dhabi National Oil Co. two years ago.

Magellan’s launch further solidifies Dubai’s position as a rising hub for hedge funds, with the city now hosting 37 global hedge fund offices overseeing at least $1 billion, 25 of which have been established since 2022. Magellan has been expanding rapidly, doubling its headcount in the past year to over 20 staff across its public and private markets operations, with offices in Dubai, Abu Dhabi, and London. The firm, led by experienced professionals like Lam, who brings two decades of industry expertise, is poised to make a significant impact on the regional and global investment landscape.