Abu Dhabi Trading & Hedge-Fund Flows Surge as CME Volumes Rise 16%
Abu Dhabi is fast becoming a magnet for global hedge funds, and the ripple effects are showing up in trading volumes across the region. CME Group, the world’s largest derivatives exchange, reported a 16% year-to-date increase in average daily trades from the Middle East, reaching 193,000 contracts. This uptick is largely driven by hedge fund activity, which itself has surged by approximately 30%.
Julie Winkler, CME’s Chief Commercial Officer, described the shift as “pretty consequential,” noting that the Middle East is now CME’s fastest-growing segment globally. While the region still contributes a single-digit percentage of CME’s overall volumes, its trajectory mirrors that of Hong Kong, signaling strategic potential.
Hedge Fund Migration to Abu Dhabi Accelerates
The UAE’s oil-rich capital is drawing heavyweight hedge funds at an unprecedented pace. Davidson Kempner, a $37 billion New York-based firm, became the latest to establish an office in Abu Dhabi, joining the likes of Marshall Wace and Brevan Howard. The latter now has over 100 staff based in the city.
This migration isn’t just about lifestyle or tax perks, it’s about proximity to capital. Hedge funds and asset managers are setting up shop to be closer to sovereign wealth funds, aiming to streamline deal access and reduce reliance on fly-in teams.
CME Deepens Regional Footprint Amid Abu Dhabi Trading & Hedge-Fund Flows
CME Group is responding to the regional momentum by embedding itself more deeply in the Middle East. Already holding a 33% stake in Dubai’s Gulf Mercantile Exchange (GME), CME is now placing a business development officer in GME’s office to establish a physical presence.
This move aligns with CME’s strategy of following its clients. “We’re guided by where our customers are positioning themselves,” Winkler explained, emphasizing the importance of both asset managers and hedge funds flowing into Abu Dhabi and Dubai.
CME Stock Outpaces Rivals with 17% Gain in 2025
CME’s strategic alignment with Abu Dhabi Trading & Hedge-Fund Flows is paying off. Its shares have climbed 17% in 2025, outperforming Intercontinental Exchange’s 6.3% rise and Nasdaq Inc’s 15% gain. Market volatility has played a role, but so has CME’s responsiveness to regional shifts.
The firm’s agility in following hedge fund migration patterns and embedding itself in emerging financial hubs like Abu Dhabi underscores its commitment to customer-centric growth.
$2 Billion Platform Signals Abu Dhabi’s Hedge Fund Ambitions
This surge in trading volumes reflects a broader migration of hedge funds into the UAE’s capital. In a landmark move underscoring Abu Dhabi’s hedge fund ambitions, investment firm Lunate committed $2 billion in August 2025 to launch a new investment platform in partnership with Brevan Howard. The platform, domiciled in Abu Dhabi Global Market (ADGM), reflects the emirate’s growing appeal as a base for global asset managers. This strategic alliance not only cements Brevan Howard’s presence in the region, where it already employs over 100 staff, but also signals a broader shift in capital formation toward the Gulf.
ADGM Reports 42% AUM Surge as Licensing Hits 11,000+
Abu Dhabi Global Market has emerged as a powerhouse in the regional financial ecosystem, reporting a 42% increase in assets under management (AUM) in the first half of 2025. The financial free zone also surpassed 11,000 active licenses, a record milestone that highlights its growing role in global capital markets. This surge in institutional activity reinforces the narrative around Abu Dhabi Trading & Hedge-Fund Flows, as more firms seek regulatory clarity, capital access, and strategic positioning within the UAE.
These milestones reinforce Abu Dhabi’s emergence as a strategic nexus for hedge fund flows, institutional trading, and regional capital formation.
Also Read: Abu Dhabi Financial Services: Powering Growth Through Innovation and Investment
