Ray Dalio, the billionaire founder of Bridgewater Associates, the world's largest hedge fund, is expanding his family office to Abu Dhabi, as reported by Bloomberg. Dalio, who stepped down from Bridgewater in October, has been focusing on growing his family office's presence worldwide, with the most recent expansion targeting the Middle East.

According to people familiar with the matter, Dalio Family Office will be located in Abu Dhabi Global Market, the international financial free zone in the United Arab Emirates' capital, Abu Dhabi. Dalio's expansion of his family office to the Middle East is based on close relationships developed over the years. 

"Plans are underway to bring in a team of experienced investment professionals to lead the arm of the family office," said one person familiar with the matter. 

Another person said Dalio is exploring an investment partnership with Group 42, an artificial intelligence company headed by UAE National Security Adviser Sheikh Tahnoon bin Zayed. They said one goal of the project is to develop "Indonesia's new capital." 

Dalio told Bloomberg in a statement:

"I have had more than 30 years of meaningful work and meaningful relationships with the people and leadership in Abu Dhabi which has led me to like and admire them greatly.

"Abu Dhabi is also becoming a hub for many exciting developments in the region, including across the UAE and in Saudi Arabia."

Numerous hedge funds have shifted operations to Dubai in the last several years due to the city-state's low taxes. In February, Dubai's financial center said more than 50 firms are considering new offices in the area, such as Millennium Management and ExodusPoint Capital Management.