Abu Dhabi Attracts Hedge Funds with Full Office Spaces
In a bustling scene, hedge funds are flocking to Abu Dhabi, driving office occupancy rates over 95 percent. The demand is so high that there is now a call for an increase in business-centric real estate in the area.
Expansion Plans for Abu Dhabi Global Market
Tenancy levels at the four towers in Abu Dhabi Global Market, located on Al-Maryah Island, have soared from 91.3 percent in the first quarter to nearly full now, as reported by Bloomberg. The government is looking to expand the free zone’s jurisdiction to neighboring Al-Reem Island, increasing its space by 10 times and positioning it as one of the largest financial districts globally, covering 14.4 million sq. m.
Attractions for Hedge Fund Managers
Abu Dhabi’s sovereign wealth funds, tax-free income, favorable weather, and convenient time zone for trading across different markets are drawing hedge fund managers to the emirate. This aligns well with ADGM’s goal of attracting diverse businesses, including financial institutions, asset management, and fintech companies, as well as corporations and professional services firms.
Standing Out Among Global Cities
Abu Dhabi’s success in attracting hedge funds sets it apart from other major global cities like New York, London, and San Francisco, where high office vacancy rates persist due to the shift towards remote work post-pandemic. The city’s strategic location and business-friendly environment are proving to be a magnet for firms from around the world.
Future Expansion Plans
“With growing demand for companies to locate within ADGM, occupancy rates in Al-Maryah Island have exceeded 95 percent,” a representative for ADGM highlighted. The need for expansion is clear in order to accommodate the increasing demand from companies looking to establish a presence in Abu Dhabi’s thriving financial hub.