Abu Dhabi has earned the title of the wealthiest city globally in terms of sovereign wealth fund (SWF) assets, as highlighted in a recent report by Global SWF.
Significant SWF Assets in Abu Dhabi
According to the report, the city manages a staggering $1.7 trillion in assets through its various sovereign wealth funds. Among the most prominent entities are:
- Abu Dhabi Investment Authority (ADIA)
- Mubadala Investment Company (MIC)
- Abu Dhabi Developmental Holding Company (ADQ)
- Emirates Investment Authority (EIA)
Comparison with Other Global Financial Centers
Abu Dhabi surpasses Oslo, which hosts the Government Pension Fund (GPF), the largest SWF globally, with assets exceeding $1.6 trillion. Following closely behind Abu Dhabi and Oslo are Beijing (home to China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (Public Investment Fund), and Hong Kong (headquarters of SAFE Investment Corporation, China’s second SWF).
These six cities collectively manage two-thirds of the capital under SWF control, amounting to $12.5 trillion as of October 1, 2024.
A Growing Financial Hub
Over the past several decades, Abu Dhabi has expanded its institutional investor base, becoming a global financial powerhouse. In addition to its SWFs, the emirate is home to several major asset owners, including central banks, pension funds, and family offices, some of which are associated with the Royal Family.
Future Projections
Global SWF projects that Abu Dhabi’s public capital, currently valued at $2.3 trillion, could reach $3.4 trillion by 2030. Furthermore, the city’s SWF sector employs over 3,100 personnel, reinforcing its position as a leader in both financial and human capital. This dominance has earned Abu Dhabi the moniker “Capital of Capital.”
Insights from Global SWF
Diego López, Founder and Managing Director of Global SWF, commented, “This global ranking highlights the concentration of sovereign wealth funds in a few key cities, emphasizing their importance on the international financial stage. The report sheds light on how the distribution of SWF-managed capital is evolving and expanding in specific regions around the world.”
Published on: 9 Oct 2024
Source: https://www.arabianbusiness.com/money/sovereign-wealth/abu-dhabi-named-worlds-richest-city-for-sovereign-wealth-funds-with-1-7tn-in-assets
