Why Hedge Funds Are Choosing Abu Dhabi Over London

The Abu Dhabi Global Market (ADGM) financial district is experiencing robust growth. In just one year, the number of new business licences increased by 67%, its workforce grew by 17%, and assets under management rose by 33%. Demand for office space is so high that ADGM must expand, similar to the previous expansion of the DIFC in Dubai.

In London, the picture is entirely different. The number of vacant offices is rising, and HSBC has announced it will leave its 45-storey Canary Wharf tower in 2027, halving its office footprint. While ADGM recorded 33% growth in assets under management, London was stuck at 3%, lagging far behind the S&P 500, which rose by 23%. Since Brexit, 40,000 jobs in the financial sector have been lost, including many senior roles.

The Advantages of Abu Dhabi

Abu Dhabi offers advantages that are becoming increasingly scarce in London: 0% income tax, a legal system based on English common law, political stability, and direct access to trillions in sovereign wealth funds. The time zone is advantageous for global strategies; professionals can operate on UK hours but start the day later, or utilise the time difference to react earlier to Asian markets.

Furthermore, tax advantages in London are being scaled back and regulation is increasing, making it less attractive for high-net-worth individuals and funds. In contrast, Abu Dhabi offers predictable policy without sudden changes in direction.

It is no surprise that major names such as BlackRock, UBS, Brevan Howard, and BlueCrest are choosing to expand or relocate their operations to the UAE. The combination of fiscal benefits, legal certainty, and strategic location makes Abu Dhabi an increasingly strong competitor for traditional financial hubs like London.