Abu Dhabi’s national champions, like Etihad, ADPorts, and Masdar, bolster its financial prowess with substantial overseas investments.
Abu Dhabi now holds the title of the wealthiest city in the world, boasting an impressive US$ 1.7 trillion managed through its Sovereign Wealth Funds (SWFs), as reported by Global SWF. This remarkable wealth is distributed among major entities like ADIA, Mubadala, and ADQ, positioning Abu Dhabi as a key player in the global financial arena, reported nukta.com.
The city’s ascent to this towering position has not been instantaneous; it is the outcome of decades of strategic investments, diversification efforts, and a comprehensive vision for sustainability. Global SWF notes that Abu Dhabi’s journey to wealth commenced in 1958 with the discovery of oil. By the early 1970s, the government established ADIA, one of the earliest SWFs in the world, to invest surplus oil revenues on an international scale.
Over the past sixty years, Abu Dhabi’s financial strategy has matured, emphasizing the attraction of foreign investment while simultaneously channeling surplus capital abroad. This dual approach not only amplifies the city’s wealth but also ensures its long-term sustainability, according to the report.
Global SWF highlights Abu Dhabi’s multi-fund strategy, wherein entities like ADIA, Mubadala, ADQ, and others operate autonomously, each with distinct mandates and leadership. This diversification enables the emirate to explore a broad spectrum of investments, from global infrastructure projects to cutting-edge technologies, thereby enhancing its financial resilience.
In 2024, Abu Dhabi’s SWFs invested US$ 36 billion globally, which represented two-thirds of all investments made by Gulf SWFs, as per Global SWF data. The city’s latest financial addition, Lunate Capital, has quickly made an impact, managing US$ 105 billion and closing significant deals, such as the ADNOC Oil Pipelines.
Additionally, Abu Dhabi’s national champions, like Etihad, ADPorts, and Masdar, bolster its financial prowess with substantial overseas investments. The Abu Dhabi Stock Exchange (ADX) has also emerged as a significant entity, featuring 99 listed companies and a market capitalization of US$ 779 billion, the report concluded.
