An integrated financial environment supports the establishment and operation of hedge funds in Abu Dhabi, with access to long-term institutional capital, flexible investment structures and a supportive legal and regulatory framework offered by the Abu Dhabi Global Market (ADGM), the emirate’s international financial centre.
Abu Dhabi Global Market (ADGM) recorded 54 per cent year-on-year growth in assets under management in the first half of 2026, while global hedge funds continued to expand their presence in the emirate. The growth reflects Abu Dhabi's position as a destination for hedge fund managers, supported by ADGM’s direct application of English common law, flexible fund structures and long-term institutional capital.
The Global Financial Centres Index (GFCI 40), published in September 2026, ranked Abu Dhabi 13th globally.
Global hedge fund managers
In December 2025, Brevan Howard's founder stated that the firm managed more money from Abu Dhabi than from anywhere else in the world, while the company's Abu Dhabi team grew from 15 to 150 people in approximately three years. Millennium, Marshall Wace, Hudson Bay and Balyasny are among the other global managers with a presence in the emirate. In May 2026, Man Group, which manages approximately US$270.9 billion in assets, applied for a Category 3A licence at ADGM.
Institutional capital
Lunate, an Abu Dhabi alternatives firm, has committed long-term capital as a limited partner to Brevan Howard's funds, acquired a strategic stake in the firm and is developing joint products for distribution in the region. According to Global SWF’s October 2026 report, Abu Dhabi's sovereign wealth funds managed US$2.2 trillion, and Mubadala was the most active sovereign fund of 2025, deploying a record US$32.7 billion across 40 transactions.
Fund structures and regulation
Hedge funds in ADGM may be structured as open- or closed-ended investment companies, limited partnerships, investment trusts, or protected and incorporated cell companies, which allow segregated sub-funds within one structure. Qualified Investor Funds require a minimum investment of US$500,000. Under rules that took effect on 16 September 2026, managers serving institutional investors exclusively may operate as Institutional Fund Managers, with a minimum subscription of US$5 million per investor, no aggregate committed-capital ceiling and a base capital requirement starting at US$50,000.
Asset management community
Fund and asset managers in ADGM reached 190 in the first half of 2026, up from 154 year-on-year, while the number of funds managed from ADGM rose from 209 to 276. Asset managers that established a presence in ADGM during the period oversee more than US$2.1 trillion in global assets, following a 36 per cent increase in assets under management in 2025.
Legal and tax framework
ADGM applies English common law directly under its Application of English Law Regulations 2015, with disputes heard by ADGM Courts, which are modelled on the English judicial system. Under Federal Decree-Law No. 47 of 2022 on Corporate Tax, regulated fund management is a qualifying activity, enabling a Qualifying Free Zone Person to benefit from a 0 per cent rate on qualifying income. ADGM also offers 100 per cent foreign ownership with no withholding tax. In addition, the inaugural Financial Centre Competitiveness Index from the Stern School of Business at NYU Abu Dhabi ranked the emirate first globally for regulatory innovation.
With a growing presence of global hedge fund managers, long-term capital partners and a regulatory framework tailored to the sector's needs, Abu Dhabi continues to develop its financial ecosystem and support the growth of hedge fund activities in the emirate.
