Business

Monday, December 22, 2025 | Daily Newspaper published by GPPC Doha, Qatar.

Business

Ken Griffin, Citadel CEO.

Citadel plans Dubai office in boost for city’s hedge fund hopes

Ken Griffin’s Citadel is establishing an office in Dubai, becoming one of the last major hedge fund holdouts to set up shop in the United Arab Emirates and marking a significant win for the city’s attempts to become a hub for the industry.The $72bn firm plans to open an outpost in the emirate’s financial centre next year. The move will extend Citadel’s presence to an 18th city and comes as the world’s largest hedge funds increasingly migrate to Dubai and Abu Dhabi, amid a growing talent pool and expanding regional capital markets.“Building high-performing teams in cities with exceptional talent has been a cornerstone of our success for 35 years,” Citadel Chief Operating Officer Gerald Beeson said in a statement. The office will “offer the strong talent pool in the region compelling opportunities to grow their careers with us”, he said.The Dubai office is expected to help Citadel strengthen its around-the-clock trading capabilities and deepen relationships with companies that already have a significant presence in the Gulf.Members of its Fixed Income and Macro business, which is led by Edwin Lin, will be the first to establish a presence in the city.Griffin, the firm’s chief executive officer, has previously said any expansion decision would hinge on access to talent, not just tax perks. “Having a portfolio manager located in a low-tax jurisdiction on Zoom intermittently with a team back in London — that’s not a winning formula,” he said at an event in Doha last year.Still, the likes of Brevan Howard Asset Management and Millennium Management have set up local offices in the UAE in recent years. The influx of firms has brought in hundreds of traders and associated staff to the country, helping build a foundation for a hedge fund ecosystem.Meanwhile, both Dubai and Abu Dhabi have stepped up efforts to attract global investment firms, touting their zero personal income tax, business-friendly regulation and a timezone that connects traders in Asia, Europe and the US. Some firms are now using Gulf offices as perks to recruit and retain global talent.In all, Dubai now hosts more than 100 hedge funds. Neighboring Abu Dhabi is also expanding rapidly, with Hudson Bay Capital Management, Marshall Wace and Arini all setting up in the city over the past year.With Citadel, one of the world’s largest hedge fund employers, now entering the UAE, one prominent holdout remains: D.E. Shaw, which opened in Dubai in 2009 but later pulled out.

Gulf Times

Crafting in drafting contracts

Drafting of contracts require certain skills and special capabilities, as instances of inappropriate drafting, or weak or bad or ambiguous drafting are normally treated as a major legal risk. What you write by yourself could fire back on you with great losses and damages. Here comes the inherent importance of accurate drafting. Where a clause is duly incorporated into a contract and there are conflicts regarding the interpretation of such clauses, the Courts will normally examine the words used to see if the clause covers the breach and loss which has actually occurred. In such instances the main rules used by the Courts, include “strict interpretation” where, an exemption clause will be effective only if it expressly covers that kind of liability which has in fact happened. For example, a clause, for exclusion of liability for breach of warranty will not provide protection against liability for breach of condition. This is taking in consideration the differences between warranties and conditions in contracts. Also, if there is any ambiguity or doubt as to the meaning of an exemption clause, the Courts will construe it against the party who put in the contract. Therefore, very clear words must be used before a party will be held exempted from liability in negligence. This goes in line with the rule that, a contract is the will of the contracting parties which represents their intention at the time of contracting. However, such intention shall be put in clear words and perfect drafting. The Courts can strike out an “exemption clause” which is inconsistent with or repugnant to the main purpose of the contract. Also, the doctrine of “fundamental breach”, was developed in the fight against exclusion clauses which had been properly incorporated into contracts. According to the doctrine of ‘fundamental breach” no exemption clause, however clear and unambiguous could, as a matter of law, protect a party from liability for a serious or fundamental breach of a contract. In a famous case, the deft a security company agreed to provide security services to the plaintiff factory. One night the security man lit fire and the fire got out of control and damaged the factory. The deft, relied on an exclusion clause in their contract which stated that they would not be responsible “for any injurious act or default by an employee unless such act or default could have been foreseen and avoided by the exercise of due diligence by the deft. The Court held that the deft was protected by the exemption clause. Although a breach of contract with serious consequences had taken place, the exclusion clause as a matter of construction, was clear and unambiguous and it covered the “fundamental breach” that had taken place. Moreover, the Court said, in this case the parties had contracted as equals and were clearly in the best position to decide how to allocate the risk of the factory being damaged or destroyed. Herein, there is clear damage, however, going back the contract the liability is exempted. Beware and be careful, as sometimes, what you have agreed to could work against you. We strongly believe that, utmost care is needed in crafting and drafting free-risk contracts. It is your prime duty when drafting contracts, otherwise, you run the legal contractual risk. Not only bad drafting or ambiguous wordings or otherwise, nowadays, some people blindly sign ready-made contracts without reading them. Never ever do this for your own sake and legal protection. Being part of the contract, you have the absolute right to read, understand, amend and or to ask for amendments. Don’t give up this right at all. Dr AbdelGadir Warsama Ghalib is a corporate legal counsel. Email: [email protected]