CAPITAL OF CAPITALS: ABU DHABI’S GROWING GRAVITY'S

Abu Dhabi Finance Week 2025 closed the year on a note that should both energise and unsettle international law firms. What once served as a forum for vision-setting and headline announcements has evolved into something far more directive: a platform where capital, regulation and strategy are actively deployed. The tone has shifted decisively—from aspiration to execution.

The timing was telling. After several years of cautious optimism, global dealmaking has yet to deliver a sustained rebound, even as 2025 ended with renewed momentum into 2026. As traditional financial centres consolidate, the geography of capital formation is shifting. Abu Dhabi is no longer positioning itself as an alternative hub; it is signalling its ambition to help architect the next market cycle.

That ambition aligns squarely with Abu Dhabi Economic Vision 2030, which seeks to diversify the economy beyond hydrocarbons and accelerate the growth of knowledge-based industries. Financial services, asset management and technology sit at the core of that strategy, with Abu Dhabi Finance Week now its most visible global expression.

In recent years, both DIFC and ADGM have seen a sharp rise in funds and regulated entities established by global asset managers, driving significant growth in assets under management. International law firms have followed, investing in local offices and regional talent to service increasingly complex cross-border mandates. Yet much of that investment has remained concentrated in Dubai and Saudi Arabia, leaving Abu Dhabi comparatively underweighted despite its accelerating momentum. Clients originating from, or deeply committed to, the region now expect advisers with equivalent local commitment. Firms slow to adjust risk missing a critical inflection point.

For fund managers, the GCC stands out for both the depth and accessibility of its investor base. The UAE hosts some of the world’s largest pools of capital, particularly through its sovereign wealth funds, and recent momentum points decisively towards Abu Dhabi. Increasingly branded as the “Capital of Capital”, the emirate reinforced that message throughout Finance Week, gaining further acceptance among global markets.

ADGM, though relatively young, offers a familiar common-law framework aligned with international regulatory standards. Combined with access to scale capital, this has proved especially attractive to private capital, capital markets, fund formation and financial regulation practices. A presence in ADGM now offers more than regulatory efficiency; it provides direct access to Abu Dhabi’s investment priorities, including technology, infrastructure, real estate and clean energy.

Global asset managers, hedge funds and private equity sponsors are no longer approaching the region as passive allocators. They are acting as anchor investors, co-underwriters and acquirers of regional platforms, deploying capital patiently and at scale, and reshaping private markets in the process.

Abu Dhabi Finance Week underscored ADGM’s growing influence as a global financial platform. ADGM has highlighted that assets under management have surpassed USD 9 trillion. This message was reinforced by developments such as Binance securing a world-first global licence from ADGM, signalling the jurisdiction’s willingness to lead in emerging financial technologies.

The race among investment firms to establish offices in Abu Dhabi is accelerating too. EQT, Eurazeo and Pollen Street Capital have committed to the emirate; Man Group has applied for a licence; and Lexington Partners, Adams Street Partners and DWS have already opened offices. Further commitments include Balyasny Asset Management, planning an opening in 2026, alongside earlier entrants such as Ardian. Through ADGM, the emirate has engineered a capital cluster capable of attracting global asset managers, private credit platforms and sovereign co-investment at unprecedented scale, underscored by Mubadala and Aldar’s USD 16 billion expansion of the financial district.

By the end of Q3 2025, nearly 40,000 professionals were working across ADGM, with assets under management up 48% YoY. The jurisdiction is home to 161 asset and fund managers overseeing more than 220 locally managed funds.

Global managers are building permanent capabilities on the ground by launching strategies from Abu Dhabi and structuring mandates designed to deploy capital both into and out of the region. This reflects a deeper institutional commitment and recognition of Abu Dhabi’s role as a global, not merely regional, capital base.

Capital allocation is increasingly shaped by structural themes including innovation tech, digital infrastructure, grid expansion, and energy generation, with private markets central to the Middle East’s energy transition. These dynamics are explored in our report Power, Data and Capital.

Law Firms Responding

This momentum has not been lost on the legal market. International firms are actively capitalising on the surge, driving a wave of new entries, returns and office expansions in Abu Dhabi. Firms advising sovereign wealth funds and global sponsors increasingly view sovereigns not merely as investors, but as strategic partners — providing cornerstone equity, underwriting certainty and privileged access to local commercial and regulatory ecosystems.

The response has been decisive. Skadden opened its first Middle East office in Abu Dhabi in January 2025, led by Michael Hilton. Paul Hastings followed in April, launching with an energy and infrastructure-led capability. Greenberg Traurig established its presence through former Latham & Watkins partners, strengthening restructuring and M&A. Addleshaw Goddard opened its ADGM, while Simmons & Simmons is expected to follow, subject to regulatory approval.

Senior lateral appointments further reflect the depth of mandates emerging from the market. Clyde & Co strengthened its energy practice with Josh McFadzen and Bryan Wilson; Cleary Gottlieb added corporate partner Mike Taylor; and Bryan Cave Leighton Paisner expanded its real estate offering with Philip Hecht.

These moves mirror broader market growth. The UAE legal services market generated approximately USD 5.0 billion in revenue in 2024 and is projected to reach USD 7.6 billion by 2030, with corporate work the largest and fastest-growing segment — driven by fund formation, M&A, infrastructure and private capital deployment.

At the practice level, firms such as King & Spalding, Morgan Lewis, A&O Shearman and White & Case have built market-leading investment funds and private capital practices advising sponsors, sovereign wealth funds and institutional investors across both conventional and Shari’ah compliant structures — cementing Abu Dhabi’s position as a core jurisdiction for global private capital strategies.

Furthermore, the recent wave of proposed international law firm mergers appears to share a common structural dynamic: one firm with an established Middle East presence pairing with another that does not. Examples include Ashurst + Perkins Coie, Hogan Lovells + Cadwalader, and Winston & Strawn + Taylor Wessing. This pattern suggests that access to the Middle East has become a key strategic consideration, particularly as US law firms seek to scale in line with client capital deployment.

As clients increasingly demand seamless multi-jurisdictional advice and competition intensifies, mergers offer a faster and more decisive route to market access. If current conditions persist, further combinations aimed at expansion and increased exposure in the UAE appear not just likely, but strategically inevitable.

A Strategic Signal, Not a Showcase

Taken together, these developments point to a clear conclusion. Abu Dhabi is transforming from a capital defined by sovereign wealth into a global hub for fund management, private capital and financial innovation. Abu Dhabi Finance Week 2025 was not a showcase... it was a strategic signal for 2026.

The Gulf is not waiting. The next wave of capital formation is already being built in Abu Dhabi. Firms that move decisively will help shape that future rather than respond to it. For those assessing market entry, expansion or talent strategy, now is the moment to engage.

Our team is well placed to advise on launch and expansion strategies. Please get in touch to discuss how we can support your plans.