On December 23, Bloomberg reported that Abu Dhabi is actively shaping itself as an emerging hedge fund hub and has successfully attracted well-known Western companies such as Brevan Howard Asset Management and Marshall Wace. Now, this trend has been further promoted, and heavyweight Chinese institutions such as Hillhouse Capital and CPE (formerly CITIC Industrial Investment Fund Management Co., Ltd.) are considering joining the ranks.

According to people familiar with the matter, Hillhouse Capital and CPE have started preliminary negotiations to set up offices in Abu Dhabi. Representatives of the Abu Dhabi Financial Free Zone (ADGM) expect that the two Chinese private equity firms will soon set up bases in the country. This move not only reflects the strong interest of Chinese institutions in the UAE market, but also demonstrates the positive response of Asian investment institutions to the trend of Western counterparts entering the UAE.

The UAE has become a strong competitor to financial centers such as London due to its strong sovereign wealth fund, tax-free status and favorable time zone. As important financial centers in the UAE, cities such as Abu Dhabi and Dubai are attracting more and more investment institutions to set up bases.

“Abu Dhabi absolutely delivers on that,” Paul Marshall, co-founder of Marshall Wace, said at the annual financial conference in Abu Dhabi. “It’s a very attractive place to be.”

It is worth noting that Abu Dhabi is not alone in attracting investment companies. Dubai's financial regulator and the Alternative Investment Management Association have also taken active actions and recently jointly hosted executives from wealth and asset management companies from China, aiming to encourage some of these companies to enter the region. With the help of companies such as Millennium Management, the number of employees in Dubai's hedge fund industry has exceeded 1,000.

"Chinese interest surged in 2024," the Dubai International Financial Centre said in a statement. At least two heavyweight Chinese companies have set up shop in Dubai in recent months, including Dymon Asia Capital and Alp Ercil's Asia Research & Capital Management.