Dubai and Abu Dhabi, two prominent cities in the UAE, are emerging as financial giants in the Middle East, attracting wealth managers from around the world. With unique assets, each city is working to position itself as the region’s top financial center. Dubai, the established hub, ranks 16th on the Global Financial Centres Index, while Abu Dhabi follows at 35th. However, Abu Dhabi’s recent push to diversify its economy and leverage its wealth reserves has intensified the rivalry.
Abu Dhabi, which controls the majority of the UAE’s oil reserves, is rapidly building its non-oil sectors, thanks in part to its sovereign wealth funds, which collectively manage nearly $2 trillion. This shift has sparked interest in Abu Dhabi’s financial ecosystem among international investors. The UAE’s supportive regulatory framework has also encouraged many to establish bases in Abu Dhabi and Dubai to cater to the region’s demands for financial services.
“It’s completely changed in the past year,” said Ryan Lemand, CEO of Abu Dhabi-based Neovision Wealth Management. “There’s been an influx of money managers, hedge funds, alternatives, etc., coming to conferences to raise funds here.”
Dubai International Financial Centre (DIFC) currently hosts over 420 wealth and asset management firms. In contrast, Abu Dhabi’s financial zone, the Abu Dhabi Global Market (ADGM), has reported 112 fund firms as of mid-year.
The ADGM is steadily gaining traction, with many hedge funds, including industry leaders like Brevan Howard, entering the Abu Dhabi market.
Additionally, asset managers such as PGIM and Nuveen have also moved to Abu Dhabi, following the city’s strategic approach to attracting global financial players.
Abu Dhabi’s draw lies in its substantial sovereign wealth funds, which total around $1.7 trillion, significantly higher than Dubai’s $500 billion. A senior representative from a wealth management firm observed, “The bigger presence of sovereign wealth funds in Abu Dhabi is a major pull factor.”
Dubai, known for its vibrant business environment, offers a long history of financial allure, low taxes, and a cosmopolitan lifestyle. With the UAE also positioning itself as a hub for the crypto industry, both cities continue to attract diverse investments. Brevan Howard, for instance, conducts significant crypto trading activities from the UAE, leveraging the region’s supportive regulations.
While Dubai’s bustling financial district and attractive lifestyle offerings still give it an edge, the race is on as both cities work to attract global wealth managers, secure investments, and shape the future of the financial sector in the region.
