Hedge fund leaders, including prominent figures like Ken Griffin and Paul Singer, convened in Abu Dhabi for a private event organized by Goldman Sachs Group Inc. The gathering focused on the substantial financial resources available in the Middle East, particularly as US investors prepare for potential recession risks. The meeting highlighted the growing appeal of the Gulf city’s wealth amid ongoing trade tensions in the U.S.

During the event, Paul Singer, founder of Elliott Investment Management, expressed concerns about the US dollar potentially losing its status as the world’s reserve currency. He also warned attendees that geopolitical tensions could escalate into conflict, although he did not specify the nature of these conflicts. The event took place at a luxury hotel and was characterized by a sense of unease as hedge fund executives assessed the impact of tariffs on global markets.

The summit marked Goldman Sachs’ first official “cap-intro” event in the region, attracting around 100 traders and allocators to Abu Dhabi’s Al Maryah, an area known for its concentration of financial firms. Khaldoon Al Mubarak, CEO of Mubadala Investment Co., which is the world’s most active sovereign wealth fund as of 2024, was among the notable attendees. Abu Dhabi, possessing 6% of the world’s oil reserves and managing $1.7 trillion in sovereign wealth, is increasingly recognized as a global financial hub.

In discussions, Griffin highlighted the ripple effects of tariffs on markets, emphasizing the importance of understanding turmoil in U.S. Treasuries. He criticized Europe’s dependence on U.S. defense spending, labeling the arrangement unfair, and voiced concerns over government inefficiencies in the U.S. The conference also featured discussions on hedge fund management strategies, with notable attendees such as Andreas Halvorsen from Viking Global Investors.

While formal presentations were taking place, much of the networking occurred in informal settings, as fund managers engaged with allocators in various breakout rooms. The atmosphere included a mix of traditional Emirati attire and formal suits, reflecting the diverse participation. Some attendees enjoyed virtual Formula One racing simulators, while others concluded the day with a private gathering at the Art Lounge in the Louvre museum in Abu Dhabi.

As the event wrapped up, it was clear that Abu Dhabi is positioning itself as a vital center for global finance, attracting significant attention from hedge funds and investors worldwide.