One major challenge is talent. With global financial firms eager to expand in Abu Dhabi, demand for experienced traders, portfolio managers and analysts is outpacing supply
Abu Dhabi is intensifying its efforts to establish itself as one of the world’s leading financial centres, as it courts hedge funds, asset managers, and private equity firms in a push to diversify its economy and rival traditional international hubs such as London, New York, Hong Kong and Singapore.
The emirate, capital of the United Arab Emirates, has long relied on oil wealth to underpin its prosperity. But with an eye firmly on a post-hydrocarbon future, Abu Dhabi is actively wooing global investment managers to relocate staff, launch regional operations, and direct more capital into its financial markets. Officials hope that success in this endeavour will cement Abu Dhabi’s status as the “capital of capital” in the Middle East.
The strategy has already begun to attract some of the world’s most powerful players in finance. US giants such as BlackRock, Bridgewater Associates, Apollo Global Management and Millennium Management have all set up or expanded their presence in the emirate. According to officials at Abu Dhabi Global Market (ADGM), the city’s international financial centre, these firms see Abu Dhabi as both a gateway to the Gulf and an increasingly important platform for managing global wealth.
ADGM, housed on Al Maryah Island in sleek office towers overlooking the waterfront, is the epicentre of this transformation. Established less than a decade ago, it has been steadily positioning itself as a rival to longer-established hubs in Dubai and Qatar, offering regulatory clarity, tax incentives and a cosmopolitan environment designed to appeal to financiers and their families.
“What distinguishes Abu Dhabi is the scale of its ambition and its long-term vision,” said one senior executive at an American fund with operations in the emirate. “It feels like being in Hong Kong 20 years ago, when the energy, momentum and sense of opportunity were palpable.”
The pitch is not simply about location, but also lifestyle. Abu Dhabi is selling itself as a place where financiers can enjoy stability, safety, and quality of life, while benefiting from a tax-friendly regime. For younger professionals, a growing café culture, luxury housing and a vibrant social scene are also becoming important draws.
The emirate is also leveraging its sovereign wealth to entice firms. The Abu Dhabi Investment Authority (ADIA) and other state funds, which together manage trillions of dollars, are among the largest investors in global markets. For money managers, proximity to such capital offers a compelling incentive to establish a base in the city.
While Dubai has traditionally held the crown as the UAE’s commercial and financial hub, Abu Dhabi’s push represents a bid to recalibrate that balance. Industry insiders suggest that Dubai’s established ecosystem still gives it an edge in areas such as fintech and regional trade finance. Yet Abu Dhabi’s deeper pockets and determination to build an international brand in finance are beginning to shift perceptions.
One major challenge is talent. With global financial firms eager to expand in Abu Dhabi, demand for experienced traders, portfolio managers and analysts is outpacing supply. Recruiters report intense competition for staff, with salaries and relocation packages being pushed higher as a result. Despite this, ADGM officials insist that Abu Dhabi’s lifestyle advantages, coupled with its growing financial community, are helping to draw professionals from London, New York and Hong Kong.
The emirate’s ambitions are also being supported by legal and regulatory reforms. ADGM has established an English common law framework, a familiar system for international firms, and continues to expand rules covering digital assets, private credit and other fast-evolving sectors. The move to regulate cryptocurrency, in particular, has positioned Abu Dhabi as a pioneer in areas where other jurisdictions remain hesitant.
Nevertheless, scepticism persists in some quarters. Critics question whether Abu Dhabi can sustain the momentum needed to become a genuine peer of the world’s most established financial hubs. Concerns include whether the emirate can truly offer the scale of financial markets, liquidity and professional depth found in London or New York. Others point to geopolitical risks and the region’s dependence on state capital as possible constraints.
Yet the mood among those already operating in Abu Dhabi is largely optimistic. “It feels like we’re still at the beginning of something that could be very significant,” said a senior executive at a European hedge fund. “The infrastructure is here, the money is here, and increasingly the people are coming too. That combination is powerful.”
As global financial centres compete for capital, Abu Dhabi’s gamble is clear: that by offering deep pockets, favourable rules, and an attractive lifestyle, it can position itself not only as the Gulf’s leading finance hub but as one of the world’s key destinations for money managers. If it succeeds, the emirate may yet achieve its bold aspiration of becoming the “capital of capital.”
