Abu Dhabi Rises to the Top: A Trillion-Dollar Sovereign Wealth Champion!

SINGAPORE – In an impressive display of financial prowess, Abu Dhabi has officially ascended to the pinnacle of a new global ranking focused on sovereign wealth fund capital managed at the city level, boasting a staggering US$1.7 trillion in assets as of October 2023. This remarkable achievement solidifies the United Arab Emirates' capital as the ultimate hub for sovereign fund investments, according to the latest report released by Global SWF on October 8.

For the first time, this groundbreaking ranking evaluates sovereign fund assets based on individual cities, propelling Abu Dhabi ahead of notable competitors such as Oslo, Beijing, and Singapore. The latter, home to the Government of Singapore Investment Corporation (GIC) and Temasek Holdings, ranks fourth with over US$1.1 trillion in assets. Interestingly, the Singapore Government has opted not to publicly disclose the complete size of reserves managed by GIC.

The report highlights that Abu Dhabi's financial prowess is underpinned by several key entities, including the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company, and ADQ. These institutions operate with distinct investment mandates, enabling Abu Dhabi to deploy a variety of investment strategies effectively.

Remarkably, the combined investment efforts of these three powerhouse entities resulted in US$36 billion being invested globally in just the first three quarters of 2024, representing an impressive 26% of sovereign fund investments during this timeframe.

A significant factor contributing to this impressive financial performance is the sustained high oil prices, which have generated considerable fiscal surpluses for Abu Dhabi since 2020. In fact, forecasts from Fitch suggest that if the current conditions persist, the emirate could see an additional US$60 billion surplus flowing into ADIA over the next two years.

However, it's not just assets that Abu Dhabi controls; it also leads in human capital employed by its sovereign wealth funds, boasting a workforce of 3,107 personnel spread across the various institutions. Other major cities, such as Singapore, Riyadh, Kuala Lumpur, and Dubai, follow closely behind, each employing over 1,000 individuals within their respective sovereign funds.

On a global scale, sovereign wealth funds collectively manage a staggering US$12.5 trillion in assets. Remarkably, six cities—Abu Dhabi, Oslo, Beijing, Singapore, Riyadh, and Hong Kong—account for over two-thirds of this monumental total.

In summary, Abu Dhabi's commanding lead in sovereign wealth assets not only reaffirms its status on the world stage but also sets the stage for a new era of investment opportunities and financial strength in the region. Keep an eye on this dynamic city as it continues to redefine global wealth management!