(HedgeCo.Net) Global hedge funds are increasingly establishing footprints in the Middle East, particularly in Abu Dhabi’s Abu Dhabi Global Market (ADGM), which is emerging as a major alternative investment hub. Prominent hedge firms — including Balyasny Asset Management and Man Group — have recently applied to open offices in the UAE capital, reflecting a broader shift in the industry’s geographic strategy. FNLondon
Why Abu Dhabi?
Abu Dhabi offers several compelling advantages for hedge funds:
- Favorable tax policy and regulatory environment that compares well with traditional financial centers.
- Access to Middle Eastern capital pools, including sovereign wealth funds and ultra-high-net-worth investors seeking diversification.
- Strategic location bridging European, Asian, and African markets, facilitating global allocation strategies.
Industry Implications
The expansion underscores the desire for regional diversification and proximity to non-U.S. sources of capital. Hedge funds with multistrategy capabilities and global client bases see Abu Dhabi as a platform for growth and institutional engagement.
Broader Trend
Other major hedge funds — including Brevan Howard and Marshall Wace — have already set up significant personnel and operational infrastructure in the UAE, signaling a broader Middle East shift in alternative asset hubs. FNLondon
Bottom line: Hedge funds are rewriting their global footprint, with Abu Dhabi becoming a key node for institutional growth and strategic presence outside traditional financial centers.
