Abu Dhabi is preparing a $16bn expansion of its financial free zone, Abu Dhabi Global Market (ADGM), as global hedge funds continue to scale up in the emirate and office space hits capacity, according to a report by Bloomberg.
The UAE capital has emerged as one of the world’s fastest-growing hedge fund hubs, drawing firms with sovereign wealth backing, favourable regulation and a time zone that spans global trading hours. Occupancy on Al Maryah Island — home to ADGM — reached 97% earlier this year, prompting authorities to approve a major extension that will double Grade-A office supply and add residential and retail developments. Mubadala and Aldar will jointly develop the new district.
The expansion comes as fresh entrants intensify the city’s hedge fund boom. Man Group is preparing to establish a base in Abu Dhabi, while Balyasny Asset Management is opening an office two years after its Dubai launch. Their arrival follows increased allocations from the $1.1tn Abu Dhabi Investment Authority, which has become an influential allocator through separately managed accounts across dozens of hedge funds.
Brevan Howard – now one of the largest hedge fund employers in the emirate – has grown its Abu Dhabi headcount to 150, up from just five in 2023. Co-founder Alan Howard told Abu Dhabi Finance Week that the city is “well on its way” to becoming a peer to London and New York, praising its pro-business framework and regulatory stability. Local investor Lunate took a stake in Brevan Howard in August and committed $2bn to a new Abu Dhabi-based investment platform.
Other global players are also deepening their presence. KKR and Cantor Fitzgerald are preparing to open offices, as the Gulf shifts from a passive capital source to an active deal-making hub. Ray Dalio said Abu Dhabi is becoming “a Silicon Valley of investing” thanks to its concentration of sovereign wealth and in-house investment expertise.
