Abu Dhabi emerges as a key operational hub as its business landscape evolves.
Abu Dhabi: As Abu Dhabi strengthens its position as a major international business and financial hub, companies expanding in the emirate are being urged to look beyond office openings and technology investments and focus on building long-term operational capabilities.
Industry experts say businesses planning their 2027 budgets must account for the rising costs of skilled talent, regulatory compliance, cybersecurity and operational resilience as more global financial and technology firms establish a permanent presence in the UAE capital.
Nagham Hassan, Market Analyst at eToro, highlighted the importance of recognising the wider costs associated with business expansion.
“The most underestimated security costs are usually not the products themselves, but the people, processes and recovery capabilities around them,” she said.
Executives across the financial services, cybersecurity and digital asset sectors say sustainable growth increasingly depends on companies developing local expertise, strengthening infrastructure and preparing for operational risks.
Abu Dhabi shifts from investment destination to operational hub
Abu Dhabi is undergoing a significant transformation, moving beyond its traditional role as a destination for international investment meetings to become a base where global firms manage capital and conduct business.
Executives interviewed by Gulf News said this shift is particularly evident in asset management, cybersecurity and digital assets.
“Historically, international managers visited Abu Dhabi to pitch the sovereign wealth funds and then returned home, managing the capital from London or New York. Now they are setting up offices, which means capital is being managed directly from Abu Dhabi rather than abroad,” Hassan added.
According to Hassan, Abu Dhabi Global Market (ADGM) hosted more than 190 asset and fund managers overseeing 276 funds during the first half of 2026.
Assets under management increased by 54 per cent year on year, continuing a pattern of annual growth recorded since 2022.
The sustained expansion suggests a structural shift in Abu Dhabi’s financial sector rather than a temporary surge in business activity.
However, establishing permanent operations also brings additional expenses, including specialist recruitment, regulatory responsibilities and cybersecurity infrastructure.
Cybersecurity spending goes beyond software and licences
Abu Dhabi-headquartered cybersecurity company CPX warns that businesses frequently underestimate the true cost of protecting their operations by focusing too heavily on software, security products and licensing fees.
As artificial intelligence becomes more widely integrated into business systems, companies must also invest in skilled professionals, incident response procedures and recovery capabilities.
Hadi Anwar, CEO of CPX, said, “The most underestimated security costs are usually not the products themselves, but the people, processes and recovery capabilities around them.”
He emphasised that opening an office or purchasing advanced technology is only the beginning of establishing a sustainable business.
Companies must also recruit specialist teams, place key decision-makers locally, develop regulated operations and invest in systems capable of withstanding market disruptions and cyber incidents.
A report by CPX, IDC and Microsoft highlights the growing gap between AI adoption and cybersecurity preparedness in the UAE.
The findings show that:
- 80 per cent of UAE chief information officers expect their AI investments to generate returns within two years.
- 98 per cent of security teams have already encountered AI-related risks in live operational systems.
- Only 10 per cent of organisations establish security requirements before selecting an AI product.
These findings underline the importance of incorporating cybersecurity planning into technology investments from the outset.
Hidden cybersecurity expenses businesses should plan for in 2027
Anwar warned that companies preparing their 2027 budgets should consider the financial impact of cyberattacks beyond the immediate cost of restoring affected systems.
Potential expenses include incident investigations, external cybersecurity specialists, legal and regulatory obligations, crisis communications and revenue losses caused by business interruptions.
Businesses must also budget for recurring cybersecurity requirements such as employee training, continuous monitoring, recovery testing and simulated cyberattack exercises.
Additional risks involving third-party suppliers, cloud infrastructure and AI applications can create unexpected costs if they are not properly assessed.
For established businesses, Anwar said cybersecurity progress should be measured by improvements in operational maturity rather than the number of security tools purchased.
Key indicators include how quickly an organisation can identify threats, contain incidents and restore essential services after an attack.
Regulatory compliance becomes a core business expense
Regulatory compliance is another major consideration for companies expanding in Abu Dhabi, particularly those operating in the digital asset industry.
Karl Naim, who leads XBTO’s Middle East operations, said licensing, compliance and risk management requirements influence nearly every aspect of the firm’s activities, from trading and custody services to asset management.
As businesses introduce new products, enter additional markets or serve different categories of clients, their regulatory responsibilities become more complex, increasing operational costs.
Naim identified two expenses that new entrants frequently underestimate.
The first is the time required to begin generating revenue. Companies must secure regulatory approvals, establish compliance functions, recruit qualified personnel and complete necessary assessments before commencing operations.
The second is the cost of specialist talent.
Professionals with expertise in both financial regulation and digital assets remain relatively scarce, making recruitment a significant expense for companies entering the sector.
For businesses developing their 2027 financial plans, Naim recommended taking a cautious approach to revenue forecasts while treating regulatory and talent-related expenses as essential investments.
“I would advise a finance leader to model the ramp-up conservatively, treat expert hires as a core budget line, and separate fixed regulatory costs from variable growth spend,” he said, as he shared his advice for 2027.
“Protect the fixed layer first, because it keeps you licensed and credible whatever the market does, then flex the rest as conditions change.”
As Abu Dhabi attracts more international firms, the message from industry executives is that long-term success will depend not only on entering the market but also on investing in the people, compliance structures and operational safeguards needed to support sustainable growth.
Abu Dhabi has already established itself as a destination for leading global institutions. The next challenge is to turn their local presence into fully operational business hubs, supported by skilled talent, robust trading infrastructure, strong regulatory frameworks and resilient cybersecurity systems. Strengthening these foundations will be essential to retaining international capital, expertise and long-term investment in the emirate.
