Abu Dhabi drives $16 billion upgrade as hedge funds deepen global push

Abu Dhabi has unveiled a $16.3 billion plan to expand Abu Dhabi Global Market ’s footprint on Al Maryah Island and its adjacent land, aiming to nearly double the availability of Grade-A office space while adding residential, retail and hospitality infrastructure.

The expansion is being driven by a surge of international hedge funds and asset managers making fresh commitments to the emirate. Among the latest arrivals, Man Group has applied for a licence to open an office next year, citing Abu Dhabi’s growing emphasis on innovation and artificial-intelligence-friendly policies. Meanwhile, Balyasny Asset Management, which manages roughly $29 billion in assets, is also set to launch its second UAE office — the first was approved in Dubai during 2023 — as part of this westwards expansion.

ADGM, established in 2013 and now spanning Al Maryah Island combined with Al Reem Island since a 2023 jurisdictional expansion, has rapidly grown as a financial centre, attracting hedge funds, private equity firms, fintechs and crypto-related businesses.

Developers behind the project — Mubadala Investment Company and real-estate major Aldar Properties — intend to transform the final undeveloped land on the north side of Al Maryah Island. Plans include about 1.5 million square metres of mixed-use infrastructure that will add roughly 450,000 square metres of high-end office space, over 3,000 luxury waterfront residences, expanded retail offerings, hospitality venues, a marina, and enhanced public spaces.

Real-estate and finance-industry data suggest the expansion responds to mounting pressure on space: occupancy rates across ADGM rose sharply this year, with office rental demand up and licence volumes surging. Current infrastructure reportedly accommodates more than 11,900 licences and close to 40,000 professionals operating within the financial district.

For global funds, Abu Dhabi’s appeal lies in more than real estate. The emirate is positioning itself as a serious rival to traditional financial centres by combining favourable tax regimes, regulatory openness and proximity to both Asian and European markets. In its statement, Man Group emphasised that the emirate’s “strong focus on innovation and AI” aligns with its strategic outlook.

Industry observers believe the influx of funds and back-office operations will deepen Abu Dhabi’s status as a global alternative-asset hub. Already, major players such as Marshall Wace and Rokos Capital Management have established or plan offices there, while other firms, including Brevan Howard Asset Management and Pharo Management, have relocated teams or expanded operations to the emirate.

At a high level, the transformation underway signals a strategic shift: Abu Dhabi is leveraging sovereign-wealth capital, real-estate development and regulatory reforms to reimagine itself as a major destination for global capital flows.

Whether the investment surge — across property and finance — will translate into long-term dominance over established financial centres will depend on how effectively Abu Dhabi retains and nurtures this wave of inflows.