Abu Dhabi has claimed the top spot in managing sovereign wealth fund (SWF) capital, surpassing Oslo, Norway, according to the latest report by industry specialist Global SWF. This solidifies the UAE capital’s position as a major financial hub, managing an astounding $1.7 trillion in assets as of October 2024.
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 institutions have elevated Abu Dhabi to lead the global SWF sector.
Oslo, home to the world’s largest sovereign fund, the Government Pension Fund of Norway (GPF), ranks just behind with over $1.6 trillion in assets. Other key cities in the top six include Beijing, Singapore, Riyadh, and Hong Kong, all of which contribute to two-thirds of the world’s $12.5 trillion SWF capital.
Abu Dhabi’s Strategic Growth
Abu Dhabi's rise in the SWF sector can be attributed to its strategic investments and diversification across industries. The emirate's SWFs are pivotal in global markets, and with an estimated $2.3 trillion in public capital, it is on track to reach $3.4 trillion by 2030, according to Global SWF.
In addition to capital, Abu Dhabi leads in human resources, with over 3,100 highly skilled professionals managing its SWF assets, reinforcing the emirate's status as a global financial powerhouse.
Shifting Dynamics in Global Sovereign Wealth
Abu Dhabi’s ascension highlights shifting global dynamics, where select cities, including Oslo, Beijing, and Singapore, have become focal points for international investment. As sovereign wealth grows, these cities are expected to play even larger roles in shaping the global economy through sustainable investments and international partnerships.
News Source: Gulf Business
