Abu Dhabi is stepping out of Dubai’s shadow, emerging as a major global financial hub and attracting its share of wealthy asset managers and billionaires. This shift is helping to solidify the United Arab Emirates’ (UAE) position as a viable alternative to traditional financial centers like London, New York, and Hong Kong. While Dubai has spent the past two decades building itself as the region’s premier financial center, Abu Dhabi is making significant strides, supported by its vast oil reserves and sovereign wealth funds, which collectively manage almost $2 trillion.
While Dubai lacks the rich oil reserves of its neighbor, it has long been the UAE’s leader in finance, boasting a low-tax environment, English common law, and exposure to rapid regional economic growth. However, in recent years, Abu Dhabi has ramped up efforts to diversify its economy, leveraging its sovereign wealth to foster growth in non-oil sectors. As a result, the international financial community is taking notice, with rising interest in the business potential created by Abu Dhabi’s growing investments in various industries.
Ryan Lemand, co-founder and CEO of Neovision Wealth Management in Abu Dhabi, noted a significant increase in interest from money managers and hedge funds. “In the past year, there’s been a notable influx of asset managers and alternative investors coming to raise funds here,” he said. The city’s growing appeal has led to numerous firms setting up operations, either in Dubai or increasingly in Abu Dhabi, seeking to gain an edge over competitors traveling from other global financial hubs.
While Dubai still leads in terms of numbers, with over 420 wealth and asset management firms operating in its financial district, Abu Dhabi is gaining momentum. By the end of June, 112 fund firms were registered in Abu Dhabi, and industry experts at the AIM Summit noted a rising trend in new company registrations, drawn by the presence of sovereign wealth funds and streamlined regulatory processes.
Notable newcomers to Abu Dhabi include billionaire Ray Dalio’s Bridgewater Associates and major asset managers such as PGIM and Nuveen. General Atlantic, a New York-based private equity firm, is also set to establish a presence after receiving preliminary approval. Abu Dhabi’s vast sovereign wealth holdings, valued at around $1.7 trillion, provide an additional incentive for firms to base their operations in the city.
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