Abu Dhabi Fuels Financial Expansion with $16 Billion Al Maryah Push

Abu Dhabi is accelerating its transformation into a global financial hub with a $16 billion expansion plan for Al Maryah Island, a key financial district hosting the Abu Dhabi Global Market (ADGM). The project, led by Mubadala Investment Co. and Aldar Properties PJSC, will nearly double Grade A office space and include 3,000 luxury residences and retail and hospitality facilities. Aldar will hold a 60% stake in the venture, underscoring the emirate's growing appeal to international financial institutions according to Bloomberg.

The expansion comes as Abu Dhabi attracts some of the world's largest hedge funds and asset managers, including Man Group Plc and Brevan Howard Asset Management. Man Group, the world's largest publicly traded hedge fund, is preparing to apply for a license to establish its strategic hub in the city, planning to launch operations in 2026. The firm cited Abu Dhabi's innovation and AI focus as key factors in its decision.

Meanwhile, Abu Dhabi's ADGM is rapidly filling up, with occupancy reaching 97% earlier this year and rents rising. To meet demand, the emirate has extended ADGM's jurisdiction to neighboring Al Reem Island, but space remains tight. The expansion is expected to alleviate pressure while supporting further growth in the financial sector.

A Growing Ecosystem for Hedge Funds and Alternatives

Abu Dhabi's financial ecosystem is evolving rapidly, drawing major players such as KKR & Co. and Rokos Capital Management. The city's financial center now hosts over 3,200 operational entities and nearly 40,000 workers, reflecting the scale of its transformation. The influx is being driven by a combination of deep pools of sovereign and private wealth, tax incentives, and strategic geographic advantages that allow firms to serve both Eastern and Western markets.

Man Group's return to the region, after closing its Dubai office in 2016, highlights the emirate's competitive edge. The firm plans to expand its operations beyond distribution to include trading, investment, and execution, and it already has partnerships with regional allocators for collaborative research and training. Brevan Howard and Hudson Bay Capital Management are also doubling down on the UAE, with both establishing a two-hub model to tap into the region's growing capital base.

Regulatory and Strategic Shifts Fuel Momentum

Abu Dhabi's ambitions are supported by favorable regulatory developments. Crypto giant Binance recently secured three licenses from the ADGM, covering its regulated exchange, clearing infrastructure, and broker-dealer arm. The move, announced during Abu Dhabi Finance Week, strengthens Binance's position in the region. The crypto exchange has also benefited from a $2 billion investment from MGX, backed by Sheikh Tahnoon bin Zayed Al Nahyan.

The regulatory environment is part of a broader strategy to attract global capital and talent. Sovereign wealth funds, including Mubadala and ADIA, are increasingly using managed accounts to allocate funds across a wide range of hedge funds and private markets. Abu Dhabi's $1.1 trillion sovereign wealth fund, ADIA, has boosted its exposure to hedge funds through these vehicles. Meanwhile, the Abu Dhabi Investment Council (ADIC), a unit of Mubadala, more than tripled its stake in a Bitcoin ETF during the third quarter, signaling its appetite for digital assets according to Bloomberg.

What This Means for the Region

The Middle East is emerging as a new hub for private markets, driven by strategic SWF investments, regulatory reforms, and a growing appetite for alternatives. Sovereign wealth funds across the GCC, including PIF, ADIA, and QIA, have made record investments in private equity and venture capital in recent years, with a combined $82 billion deployed in 2024 alone according to SSGA. These funds are not only expanding their global reach but also shaping local ecosystems through partnerships with international private equity and venture capital firms.

As the region's financial infrastructure matures, it is attracting a diverse array of investors, from family offices to institutional allocators. The UAE's strategic location and regulatory innovation mirror the development of Singapore in the 1990s, with private markets playing a central role. In Dubai, for example, the DIFC hosts over 75 hedge funds, including 48 in the "billion-dollar club," and the number of family offices continues to grow according to SSGA.