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The latest in Financial Times’ series looking at rival Middle East financial hubs puts Abu Dhabi — or the “capital of capital” — in the spotlight. The emirate, which holds some USD 1.7 tn in sovereign wealth assets, has sharpened its focus on attracting asset managers, private equity, and hedge funds, with the likes of PGIM, Nuveen, General Atlantic, Lone Star, and hedge fund Marshall Wace all joining recently. The total firm count rose to 2.8k operational entities by March, up a third from end-2024..
“There’s the same vibe in Abu Dhabi as there was in Hong Kong about 20 years ago,” one hedge fund employee told the FT, adding, “there’s a real sense of being on the ground floor of where the action is.” Abu Dhabi’s draw includes sovereign wealth firepower, zero taxes, its adoption of the English law, and crypto trading rules — though challenges remain, including limited transparency and an economy dominated by state entities and royal-linked firms.
The FT also recently looked at the Dubai International Finance Center (DIFC), which despite being around for decades longer, is now facing increased competition and a surge in cost pressures and traffic that has pushed some towards rivals like Abu Dhabi and Riyadh. One source said the DIFC is a “nice place to have dinner” while Abu Dhabi is better for dealmaking.
Still, this has not yet been reflected in the numbers. The hub has boomed since the pandemic, with company registrations more than doubling in four and a half years to 7.7k and headcount rising to nearly 48k as a rapid reopening during Covid-19 drew bankers in. The first half of 2025 was its strongest yet for new registrations. The emirate’s push into new sectors such as cryptocurrency — while carrying some risk — and its lifestyle lures have also helped increase its attraction for bankers.
The influx has strained infrastructure, with surging property prices and traffic congestion around the DIFC. Authorities plan to add 1.6 mn sq ft of office space by 2027 to ease the pressure.
One thing sets both the DIFC and ADGM apart, and that’s regulatory openness. Both emirates’ financial hubs benefit from an open approach from regulators, who sources said are “accessible, engaged, and ensuring that competitiveness is a key part of their mandate.”
