Hedge Fund Influx Has Abu Dhabi Eying $16 Billion Expansion - Bloomberg
After attracting the world’s biggest financial firms and thousands of professionals to its financial hub in recent years, Abu Dhabi is planning a $16 billion expansion to add more offices, luxury homes and retail space.
Sovereign wealth fund Mubadala Investment Co. and the city’s biggest developer Aldar Properties PJSC are partnering on the mixed-use development that will double the Grade A office space on Al Maryah Island, home to the ADGM financial center. Aldar will hold a 60% stake in the venture, which will add 3,000 luxury waterfront residences, along with retail and hospitality space, according to a statement Monday.
Buoyed by nearly $1.8 trillion in sovereign wealth, Abu Dhabi is fast catching up with neighboring Dubai as a hub for hedge funds and asset managers. In recent weeks, buyout giant KKR & Co. and Man Group Plc, the world’s largest publicly traded hedge fund, have announced plans to open offices in the city.
The investment banking unit of New York-based Cantor Fitzgerald LP and hedge fund giant Balyasny Asset Management joined the rush, as Abu Dhabi Finance Week kicked off on Monday. More firms are expected to unveil expansion plans during the annual confab.
In the third quarter, the number of operational entities within the ADGM rose to 3,227 — a 43% year-on-year increase — with nearly 12,000 active licenses now registered in the free zone. Its workforce has reached nearly 40,000.
To accommodate this influx, the emirate had extended ADGM’s jurisdiction to neighboring Al Reem Island but office space is tight. Some of ADGM’s most active firms are struggling to secure adequate facilities, as occupancy hit 97% earlier this year and rents continue to rise.
Billionaire Alan Howard said his hedge fund has run out of office space in the city, where it now employs 150 people. “We have a wait list for people who want to come, so we’re going to take more space here,” he said at Abu Dhabi Finance Week. Brevan Howard Asset Management, is the largest hedge fund operating in the emirate.
Abu Dhabi isn’t alone. Dubai is building three new towers in its financial district and retrofitting another for hedge-fund startups. Meanwhile, Riyadh’s financial hub is seeking funds for expansion, Bloomberg News has reported.
Mubadala and Aldar share a two-decade partnership, including multiple projects on Al Maryah Island. A unit of the $330 billion wealth fund is among Aldar Properties’ top shareholders.
Last week, Mubadala Capital — its asset management arm — and Aldar launched a real-assets investment platform targeting opportunities across the United Arab Emirates and broader Gulf region.
Monday, 8 December 2025
Watch #AbuDhabi's Expanding Global Influence - Bloomberg
Watch Abu Dhabi's Expanding Global Influence - Bloomberg
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Deep pools of wealth is giving Abu Dhabi unprecedented sway over global finance, energy, and AI. With three sovereign wealth funds, and a raft of new entities pouring billions into strategic industries, the emirate is becoming a dominant investing force. Bloomberg's Alex Dooler explains on Horizons Middle East and Africa. (Source: Bloomberg)
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Gulf markets end mixed ahead of Fed meeting | Reuters
Gulf markets end mixed ahead of Fed meeting | Reuters
Stock markets in the Gulf ended mixed on Monday, as growing expectation of a U.S. Federal Reserve interest rate cut this week supported some indexes and weighed on others.
U.S. consumer spending rose moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lacklustre labour market and rising cost of living curbed demand.
Dovish commentary from several Fed officials has further fuelled expectations of monetary easing.
CME's FedWatch tool shows markets are pricing in roughly an 88% chance of a 25-basis-point rate cut at the Fed's meeting this week.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.
Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, hit by a 0.4% fall in oil giant Saudi Aramco (2222.SE), opens new tab and a 3% decline in Dar Al Arkan Real Estate Development (4300.SE), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - declined on Monday as investors monitored ongoing talks to end the war in Ukraine ahead of an expected U.S. Fed interest rate cut this week.
Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.
Dubai's benchmark stock index (.DFMGI), opens new tab gained 0.3%, with budget airlines Air Arabia (AIRA.DU), opens new tab advancing 2.2%.
The Dubai market appears well-positioned for further upside, as Wednesday's Fed meeting could reinforce current momentum, supported by strong corporate and economic fundamentals, said Joseph Dahrieh, Managing Principal at Tickmill.
In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.1%.
Although the recent rebound in oil prices provided some support to market sentiment last week, the boost seems modest amid the prevailing bearish medium-term outlook for crude, said Dahrieh.
The Qatari benchmark (.QSI), opens new tab added 0.3%, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, climbing 1.9%.
U.S. consumer spending rose moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lacklustre labour market and rising cost of living curbed demand.
Dovish commentary from several Fed officials has further fuelled expectations of monetary easing.
CME's FedWatch tool shows markets are pricing in roughly an 88% chance of a 25-basis-point rate cut at the Fed's meeting this week.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.
Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, hit by a 0.4% fall in oil giant Saudi Aramco (2222.SE), opens new tab and a 3% decline in Dar Al Arkan Real Estate Development (4300.SE), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - declined on Monday as investors monitored ongoing talks to end the war in Ukraine ahead of an expected U.S. Fed interest rate cut this week.
Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.
Dubai's benchmark stock index (.DFMGI), opens new tab gained 0.3%, with budget airlines Air Arabia (AIRA.DU), opens new tab advancing 2.2%.
The Dubai market appears well-positioned for further upside, as Wednesday's Fed meeting could reinforce current momentum, supported by strong corporate and economic fundamentals, said Joseph Dahrieh, Managing Principal at Tickmill.
In Abu Dhabi, the index (.FTFADGI), opens new tab was down 0.1%.
Although the recent rebound in oil prices provided some support to market sentiment last week, the boost seems modest amid the prevailing bearish medium-term outlook for crude, said Dahrieh.
The Qatari benchmark (.QSI), opens new tab added 0.3%, with Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender by assets, climbing 1.9%.
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