Abu Dhabi's Financial Center Booms with 211% Increase in Assets Under Management
Abu Dhabi's financial center has experienced a remarkable surge in assets under management, soaring by 211% in the first quarter compared to the same period last year. This substantial growth is attributed to the influx of money managers such as GQG Partners and SS&C Technologies Holdings to the emirate. Additionally, high net worth individuals like Ray Dalio and Changpeng "CZ" Zhao have also established firms in the city. Notably, Abu Dhabi now serves as the primary location for managing assets for Brevan Howard Asset Management globally. The region, encompassing Dubai, continues to attract financial behemoths due to the wealth managed by Gulf sovereign wealth funds and the absence of income tax. This expansion is illustrated by a 30% increase in operational entities to 1,950, accompanied by a workforce of 25,000, signaling ongoing growth in the financial sector.
Key Takeaways
- Abu Dhabi's financial center sees a 211% rise in assets under management during Q1.
- 107 asset managers, including GQG Partners and SS&C Technologies, operate from the emirate.
- High net worth individuals like Ray Dalio and Changpeng Zhao have set up firms in Abu Dhabi.
- Brevan Howard Asset Management manages more money from Abu Dhabi than any other location.
- Abu Dhabi reports a 30% increase in operational entities, with 25,000 employees.
Analysis
The surge in Abu Dhabi's assets under management reflects the emirate's growing appeal for financial giants, drawn by the wealth managed by Gulf sovereign funds and the absence of income tax. This trend is evidenced by the influx of money managers like GQG Partners and SS&C Technologies, as well as high net worth individuals such as Ray Dalio and Changpeng Zhao. The region, including Dubai, is poised for further growth in the financial sector, with a 30% increase in operational entities and a workforce of 25,000. The consequences could include heightened regional competition for financial dominance, potential regulatory challenges, and a shift in global financial power dynamics. Organizations like Brevan Howard Asset Management and countries with significant financial interests, such as the United States and China, may need to adapt to these changes.
Did You Know?
- Assets under management (AUM): This term refers to the total market value of assets that a financial institution, such as a mutual fund, hedge fund, or pension fund, manages on behalf of its clients. In this context, Abu Dhabi's financial center has experienced a substantial 211% increase in AUM during the first quarter, compared to the same period last year.
- GQG Partners and SS&C Technologies Holdings: These are two prominent asset management firms that have established their operations in Abu Dhabi. GQG Partners is a global investment firm focusing on active management strategies, while SS&C Technologies Holdings is a multinational provider of financial services software and technology. Their presence in Abu Dhabi indicates the city's growing appeal for financial institutions.
- Ray Dalio and Changpeng "CZ" Zhao: Both are high net worth individuals who have set up firms in Abu Dhabi. Ray Dalio is the founder of Bridgewater Associates, one of the world's largest hedge funds. Changpeng Zhao, also known as CZ, is the CEO of Binance, the world's largest cryptocurrency exchange by trading volume. Their decision to establish operations in Abu Dhabi highlights the city's attractiveness for wealthy entrepreneurs and financial professionals.