Global funds deepen Abu Dhabi bet

Global asset managers are pressing ahead with Abu Dhabi expansion plans, signalling confidence in the emirate’s financial architecture despite a regional war that has tested the UAE’s security environment and disrupted air and maritime activity.

Abu Dhabi Global Market, the capital’s international financial centre, has drawn fresh commitments from major investment houses including Capital Group, Man Group, Bain Capital and Barings, underlining a strategy built around long-term partnerships, sovereign capital access and regional deployment rather than a tactical response to market volatility.

Capital Group, the Los Angeles-based investment manager overseeing about $3.3 trillion in assets, is preparing to open an office in ADGM, subject to regulatory approvals. The planned Abu Dhabi base would become its 35th office worldwide and its first in the Middle East, placing one of the world’s largest active investment firms closer to regional institutions, family offices and sovereign investors.

The move comes during a period of heightened geopolitical risk. The Iran war, which began on February 28, has involved missile and drone attacks directed at the UAE, air-defence interceptions, flight diversions and threats to shipping routes near the Strait of Hormuz. UAE authorities said air defences engaged missiles and drones originating from Iran, while civil defence teams responded to a blaze in Fujairah’s oil industry zone. Tehran has denied targeting the UAE, while Abu Dhabi has reserved its right to respond.

ADGM marked its 10th year of operations on March 30, five weeks into the conflict, reporting a 36 per cent rise in assets under management for 2025. Active licences surpassed 12,000, while the workforce in the financial centre rose 51 per cent to 44,339. The figures suggest that institutional expansion has continued even as regional risk premiums have risen across energy, aviation and shipping markets.

Capital Group’s decision places it alongside other trillion-dollar managers already operating from ADGM, including BlackRock, State Street, PGIM and Nuveen. Its Abu Dhabi strategy is also tied to a broader shift in global asset management, with firms seeking deeper relationships in the Gulf as the region’s sovereign funds, pension pools and family offices increase allocations across public markets, private credit, infrastructure, technology and alternatives.

Man Group, the London-listed alternative investment firm managing about $228.7 billion, has also submitted an application for a Category 3A licence in ADGM. Its planned presence is expected to support distribution, investment and trading activity from Abu Dhabi, subject to regulatory approval. The firm’s leadership has described the move as part of a deeper regional commitment, reflecting long-standing links with Abu Dhabi-based allocators.

Bain Capital, with about $215 billion in assets, and Barings, with about $418 billion, have also established ADGM bases. Their arrival strengthens Abu Dhabi’s effort to position itself as a centre for private markets, credit and alternative investment at a time when global investors are reassessing exposure to higher interest rates, supply-chain uncertainty and geopolitical shocks.

ADGM’s appeal rests on several factors. Its legal framework is based on English common law, its courts operate independently within the financial free zone, and its regulator has built a reputation for structured oversight in asset management, banking, fintech and digital assets. The centre’s expansion across Al Maryah and Al Reem islands has also created a larger physical platform for international firms seeking regional teams rather than representative offices.

Abu Dhabi’s sovereign capital base remains central to the draw. The emirate is home to Abu Dhabi Investment Authority, Mubadala Investment Company and ADQ-linked investment platforms, giving global managers proximity to some of the world’s largest pools of long-term capital. That proximity is increasingly important as asset managers compete for mandates in infrastructure, energy transition, artificial intelligence, private credit and emerging-market investment strategies.

The war has added complexity rather than halted momentum. Attacks on energy infrastructure and disruptions to flights have underscored operational risks, while threats around Hormuz have sharpened concerns over oil flows and insurance costs. Yet the continued flow of firms into ADGM indicates that major managers are separating short-term conflict volatility from Abu Dhabi’s structural investment case.