Wall Street’s Favorite Form of Compensation Arrives in Abu Dhabi

More private equity-style paychecks could soon be making their way to the Middle East.

With sovereign wealth funds like the Abu Dhabi Investment Authority, Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority hiring more talent from well known Wall Street firms, a growing number of candidates are inquiring about their ability to offer carried interest awards, according to people familiar with the matter.

Such compensation, tied to gains on investments, is already on offer at a few of Abu Dhabi’s newer firms. Some employees at Mubadala Capital and Lunate get a form of carry as part of their ...