In a significant shift within the United Arab Emirates (UAE), Abu Dhabi is stepping into the spotlight, vying for attention alongside Dubai in attracting asset managers and billionaires’ wealth. This competition is strengthening the UAE’s position as an alternative to other major global financial hubs.
Historically, Dubai has established itself as the premier financial center in the region, benefiting from its strategic location, low tax environment, and the application of English common law. Over the last two decades, Dubai has leveraged these advantages to secure its status, currently ranking 16th on the Global Financial Centres Index. In contrast, Abu Dhabi sits at 35th, although both cities rank first and second in the Middle East and Africa region.
Recently, however, Abu Dhabi has intensified its efforts to diversify its economy, capitalizing on its substantial oil reserves—accounting for 90% of the UAE’s total. With nearly $2 trillion managed by its wealth and sovereign funds, the emirate is focusing on boosting non-oil sectors and attracting international business.
The financial community has taken notice of Abu Dhabi’s strategic investments across various emerging sectors. “The landscape has transformed dramatically over the past year, with a surge of money managers, hedge funds, and alternative investment firms attending conferences to raise funds here,” remarked Ryan Lemand, co-founder and CEO of Neovision Wealth Management, based in Abu Dhabi.
Many firms are establishing operations in both Dubai and Abu Dhabi to gain a competitive edge, especially those traveling from key financial markets like London, New York, and Hong Kong. Lemand made these comments leading up to the Alternative Investment Management (AIM) Summit in Dubai, which attracted numerous institutions, including major players like Brevan Howard and JPMorgan Asset Management.
While direct comparisons between the two financial centers are challenging, statistics reveal that Dubai still maintains a significant lead. The Dubai International Financial Centre (DIFC) boasts over 420 wealth and asset management firms currently operating within its jurisdiction, according to the head of wealth and asset management at the AIM conference. In comparison, Abu Dhabi had registered 112 fund firms as of June, with no recent figures available.
As Abu Dhabi continues to strengthen its financial ecosystem, the competition between these two dynamic cities is set to redefine the region’s standing in the global financial landscape.
