Abu Dhabi’s dominance in the SWF sector is not only due to its sheer capital but also its strategic investments and diversification across industries
In a recent report by industry specialist Global SWF, Abu Dhabi has emerged as the global leader in managing sovereign wealth fund (SWF) capital, surpassing Oslo, Norway, and solidifying its status as a major financial hub.
The findings, based on the capital managed by SWFs as of October 2024, reveal that the UAE capital now oversees an impressive $1.7tn in assets, putting it at the forefront of global financial centres.
Abu Dhabi’s SWF portfolio includes the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), the Abu Dhabi Developmental Holding Company (ADQ), and the Emirates Investment Authority (EIA).
Together, these entities have helped Abu Dhabi maintain its position as the city managing the most SWF capital worldwide.
Abu Dhabi’s rise to the top spot comes just ahead of Oslo, which remains home to the world’s largest SWF, the Government Pension Fund of Norway (GPF).
With more than $1.6tn in assets, Oslo continues to play a significant role in the global SWF landscape.
Other key cities in the top six include:
– Beijing, the headquarters of the China Investment Corporation (CIC)
– Singapore, home to GIC Private and Temasek Holdings
– Riyadh, where the Public Investment Fund (PIF) is based
– Hong Kong, where China’s second SWF, the SAFE Investment Corporation, operates
Together, these six cities account for two-thirds of the world’s SWF capital, estimated at $12.5tn. This concentration underscores the global influence of these financial centres, which have become pivotal in shaping the future of investment.
Abu Dhabi’s growing influence
Abu Dhabi’s dominance in the SWF sector is not only due to its sheer capital but also its strategic investments and diversification across industries.
Over the past few decades, the emirate has grown an impressive portfolio of institutional investors, making it a key player in global markets.
With an estimated $2.3tn in public capital as of 2024, Abu Dhabi’s financial footprint is expected to grow even further, reaching an estimated $3.4tn by 2030, according to Global SWF.
This growth can be attributed to Abu Dhabi’s strategic focus on diversifying its investments and expanding its global reach.
In addition to financial capital, Abu Dhabi also leads in human capital, with over 3,100 personnel employed by SWFs based in the city.
This highly skilled workforce is pivotal in managing the vast assets of these funds and reinforcing Abu Dhabi’s position as a financial powerhouse.
The emirate’s role as a hub for SWF activity is further solidified by the presence of experts from various fields of finance, investment and governance.
Shifting global dynamics
The rise of Abu Dhabi to the top of this ranking highlights not only its growing influence in global finance but also the shifting dynamics of sovereign wealth, where a handful of cities have become the focal points for international investment.
As global wealth continues to grow and sovereign nations increasingly turn to SWFs to manage their financial assets, cities like Abu Dhabi, Oslo, Beijing, and Singapore will likely see their roles expand even further.
These financial hubs will play an increasingly important role in shaping the global economy, driving sustainable investment, and fostering international partnerships across industries.
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