Abu Dhabi's Financial Boom vs. The UK's Business Exodus.

Written from a UK based Financial Services recruiters perspective.

Abu Dhabi has emerged as a top destination for global financial services firms, thanks to its strategic initiatives and forward-thinking policies. The emirate's efforts to create a business-friendly environment, including regulatory transparency, tax incentives, and infrastructure development, have positioned it as a financial hub in the Middle East. Key institutions like the Abu Dhabi Global Market (ADGM) offer a streamlined regulatory framework that attracts international firms, making it easier for businesses to set up and operate. As a result, Abu Dhabi is experiencing rapid growth in the financial services sector, contributing significantly to the region's economic prosperity.

In contrast, the UK, particularly post-Brexit, has seen a wave of uncertainty that has pushed many businesses and talent away. Changes in tax policies, stricter regulations, and a perceived lack of political stability are driving firms to relocate or reconsider their UK investments. This, combined with stricter immigration policies, has created a challenging environment for both companies and skilled professionals. The contrast between Abu Dhabi’s proactive approach and the UK’s more restrictive environment is clear—while one is fostering a booming financial ecosystem, the other is driving industrious firms and people elsewhere.

Several major hedge funds have recently expanded their operations to Abu Dhabi, contributing to its growing financial sector. Notable firms include:

1. Brevan Howard: One of the world's largest hedge funds, it has significantly increased its presence in Abu Dhabi Global Market (ADGM), doubling its workforce and moving part of its trading operations to the city.
2. TCI Fund Management: The $60 billion London-based firm opened an office in Abu Dhabi in 2023 to expand its regional footprint and focus on building relationships with local investors.
3. Bridgewater Associates, Millennium Management, and ExodusPoint Capital Management: These major global hedge funds have also either set up or expanded their presence in the UAE, leveraging Abu Dhabi as a regional hub.

Abu Dhabi’s strategic incentives, such as a zero-tax policy and its growing position as a financial centre, continue to attract hedge funds seeking both talent and capital