Abu Dhabi’s financial district is humming, with assets surging and plans to double the amount of office space on Al Maryah Island. Assets under management in the UAE capital were up 48% year-on-year by the end of September, according to a statement from the city’s financial hub ADGM, although it did not give a monetary value. There are now nearly 40,000 employees in the city’s finance sector, meaning it’s catching up with neighboring Dubai’s 48,000.
Man Group, the world’s largest listed hedge fund manager, is the latest to plan an ADGM office, ahead of Chief Executive Robyn Grew’s appearance this week at ADFW. Others including Jane Street and DWS Group are also looking, adding to the 161 asset managers already in town.
Abu Dhabi clearly expects more to join: Aldar and Mubadala announced a 1.5 million-square-meter expansion plan costing 60 billion dirhams ($16.3 billion), including 450,000 square meters of Grade A offices, along with residential, retail, and hospitality space — comparable in size to the Hudson Yards redevelopment in New York.
Abu Dhabi has managed to use its deep-pocketed sovereign wealth funds, tax-free environment, and modern infrastructure to pitch itself to everyone from billionaires like Ray Dalio to superstar traders. The longer-term challenge is whether all these firms can build sustainable businesses from their shiny new offices.