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Abu Dhabi hedge fund push sparks office shortage

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Abu Dhabi’s successful push to attract top hedge funds has led to a shortage of office space on Al Maryah Island, home to the four towers of the Abu Dhabi Global Market, the emirate’s international financial centre and free zone, according to a report by Bloomberg.

As a result, the government is now looking to expand the free zone’s jurisdiction to neighbouring Al Reem Island, a move which will increase available office space tenfold, making it one of the largest financial districts globally at around 14.4m square meters (3,558 acres).

Current tenants on Al Reem Island have been told that they must obtain an ADGM license or vacate their offices by the end of the year, with Cushman & Wakefield estimating that around 25% will be forced to move as a result.

A representative for ADGM said: “With growing demand for companies to locate within ADGM, occupancy rates in Al Maryah Island have exceeded 95%.

“Expansion is the next natural and necessary step to better accommodate the increasing demand.”

ADGM’s attractivenesswith hedger fund firms has been bolstered by Abu Dhabi’s tax-free income regime, sunny climate and strategic time zone, allowing trade across Asian, European and US hours.

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