Abu Dhabi’s financial hub is experiencing a surge in demand for office space due to the influx of major global hedge funds. The emirate’s financial district, located on Al Maryah Island, is close to full occupancy, with demand increasing for companies to set up shop within the Abu Dhabi Global Market (ADGM). This has led to occupancy rates on Al Maryah Island exceeding 95%, prompting expansion plans.
To accommodate the growing demand, Abu Dhabi is currently expanding its free zone to include neighboring Al Reem Island, providing ten times more space and making it one of the largest financial districts in the world. The emirate is also working to regularize the status of existing tenants on Al Reem Island by obtaining an ADGM license by the end of the year.
The shortage of office space has also prompted some companies to consider constructing their own towers across Abu Dhabi. The rush of new entrants, including hedge funds, venture capital firms, and cryptocurrency companies, has led to a 211% increase in assets under management in the first quarter. Abu Dhabi’s tax-free income, sunny weather, and time zone allowing for trading during Asian, European, and US business hours make it an attractive destination for companies from around the world.
The emirate’s officials have also offered perks to new entrants, such as assistance with school admissions for their children and securing memberships at country clubs. While higher average rents across prime commercial spaces in Abu Dhabi are likely to continue due to scarcity of supply, plans are being made to expand office space in the emirate over the next two years. Developers are set to provide the largest supply of office space since 2012 in order to capitalize on growing demand from various industries.
