His coffin, draped in a tricolour and topped with a beret and gloves, left his home on Friendly Street in the Markets area at 11.30am. Around 1,000 mourners led by a lone piper led the procession to the scene of the murder, where a service took place. Black balloons were carried by those who attended.
Former IRA leaders Bobby Storey and Spike Murray were among those who took turns carrying the coffin to Milltown Cemetery in the west of the city.
So far in their murder investigation police have questioned three men, but all have been released.
There has been speculation that Davison's murder may have been ordered by drug barons in revenge for actions taken by the IRA-linked Direct Action Against Drugs (DAAD). Davison was one of the leaders of DAAD which gunned down at least nine drug dealers during the 1990s.
He was shot in the back and four times in the face, indicating the killing may have been a personal grudge. Police are investigating whether the killer came to Belfast from Dublin on the train which set down at Central Station beside the Markets area, and are checking CCTV footage from the station. The PSNI has said the killer was wearing a black hooded waterproof jacket and was waiting for Davison to walk past on his way to work at the junction of Lower Stanfield Street and Welsh Street. There is further speculation he may have been of a short stature, of between 5ft 2in and 5ft 6in.
PSNI Detective Chief Constable Justyn Galloway has urged anyone who believes they may have seen the gunman or has information about the murder to come forward to police.