From a penthouse overlooking the Persian Gulf, one of the world’s biggest hedge fund fortunes is feeling increasingly at home.
Ray Dalio’s purchase of a luxury beachside residence on Abu Dhabi’s Saadiyat Island is part of a Middle Eastern outpost that also includes a branch of his family office in the city’s financial district, according to people with knowledge of the matter. His growing footprint is emblematic of the changes that have turned the United Arab Emirates into an important hub for traders. The past couple of years have seen highly paid professionals from more than 100 firms arrive, an influx that’s rippling through the nation.
While the Israel-Hamas war has brought a stark reminder of the volatility facing the Middle East and raised questions about whether it could hamper the region's recent boom, several funds said their UAE expansion plans remained unchanged.
In recent years, UAE officials have emphasized that they'd like to maintain friendly relations with nations in the Middle East and beyond, a stance that’s helped the country’s economy in the midst of pandemics and wars. During the Arab Spring that began in 2010, as local uprisings roiled many Middle Eastern governments, the UAE remained politically stable and even benefited from cash inflows from other parts of their region as wealthy families rushed to safeguard their money. When Covid-19 rippled through the globe, the country’s easy visa policies attracted expats. Russian money came flowing in after Moscow’s invasion of Ukraine because the UAE didn’t impose sanctions.
“Traditional, less attractive jurisdictions such as London and Hong Kong are losing out on investors and professionals who are flocking to the UAE,” said Sunita Singh-Dalal, a Dubai-based partner at law firm Hourani & Partners, who is focused on private wealth and family offices.
When Brevan Howard Asset Management unveiled plans to open an outpost in Abu Dhabi Global Market, requests from staff to relocate far exceeded the number of employees the firm could accommodate. The macro-trading firm had to limit the number of people moving to the new office, according to a person with knowledge of the matter.
Less than a two-hour drive away in Dubai, where heavyweight firms like Izzy Englander’s Millennium Management and Michael Gelband’s ExodusPoint have set up shop, office rents have been rising faster than in New York or London. Hot dining spots are packed. Workers in the Dubai International Financial Centre bemoan the traffic snarls that regularly jam the roads around the financial district. Private jet usage at one of the city’s VIP terminals is set to reach an all-time high.
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