Abu Dhabi is now the richest city in the world

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_{Yes, you read that accurately: Abu Dhabi, the UAE's capital, is officially the "Capital of Capital," managing an astounding $1.7 trillion in assets through its Sovereign Wealth Funds (SWFs) as of October 2024.}

_{The research was produced by industry expert Global SWF, and the figure places Abu Dhabi far ahead of global competitors such as Oslo, Beijing, and Riyadh.}  

_{Furthermore, this figure excludes the massive US$ 344 billion handled by Abu Dhabi's Royal Private Offices. With a roster of 3,107 SWF employees, the largest workforce in this industry, Abu Dhabi is definitely in an elite category of its own.}

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_{Abu Dhabi has an extensive record of economic prosperity that predates its designation as the "richest city" in the world. The story begins in 1958, with the discovery of oil in the emirate. A few years later, the Abu Dhabi Investment Authority (ADIA) was founded, ushering the emirate's reign as a global financial powerhouse.}

_{What began with oil profits properly invested in worldwide markets has evolved into a diverse, powerful economy with fingers in every financial pie imaginable.}

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_{But Abu Dhabi isn't only about preserving money; it's about expanding it responsibly. Over the last several years, the city has altered gears to recruit foreign institutions, transforming it into not only a capital hub but also a magnet for global talent.}

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_{While some cities combine their wealth into one large pot, Abu Dhabi adopts a more targeted approach. With many SWFs, each with its own strategy, emphasis, and leadership, the city's investment landscape is as complex as it is profitable.}

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_{Consider Mubadala, for example. Mubadala was founded in 2002 as a development business and has since grown into a key role in the global financial scene. Mubadala Capital has even managed to secure third-party equity in recent years, raising $18 billion from overseas investors.}

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_{Then there's ADQ, Abu Dhabi's newest wealth management firm, which launched in 2018. And don't forget about Sheikh Tahnoun's Royal Group, an intricate web of enterprises including IHC, Multiply, and Alpha Dhabi that has made major investments in fields ranging from artificial intelligence to healthcare.}

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_{While Abu Dhabi's wealth is deeply rooted in oil (it owns 94% of the UAE's oil), the country's financial empire is significantly more diverse.}

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_{Abu Dhabi's assets extend far beyond oil pipelines, thanks to renewable energy powerhouse Masdar, telecommunications leader e&, and real estate titan Aldar. This diversification assures that the city's prosperity is not solely derived from fossil resources, but also from future prospects.}

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_{And the numbers back it up. Sustained high oil prices may have helped Abu Dhabi weather recent global financial storms, but the city's expanding budget surpluses are now being directed towards a wide range of global ventures.}

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_{From software companies to renewable energy projects, Abu Dhabi is taking steps to maintain its status as the world's richest city. Abu Dhabi's SWFs were especially active in 2024. ADIA, Mubadala, and ADQ invested a total of US$ 36 billion internationally in just the first three quarters of the year. That accounts for two-thirds of all Gulf SWF investments and a startling 26% of worldwide SWF investments during the same time.}

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_{And it isn't just the major players. The newly formed Lunate Capital has already made some high-profile acquisitions, including shares in ADNOC Oil Pipelines and the iconic ICD-Brookfield Place. With assets of US$105 billion under management, Lunate is poised to become yet another feather in Abu Dhabi’s already heavily decorated cap.}

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What happens next?

_{So, what will the future hold for this wealth capital? A great deal more.}

_{The Abu Dhabi Securities Exchange (ADX), which is completely owned by ADQ, is experiencing increased activity. IPOs are flourishing, with three already raising $1.4 billion in 2024 and more on the way, including potential household brands such as NMC Healthcare and Lulu Hypermarkets. Even Etihad Airways could be the next to go public. There are now 99 firms listed on ADX, with a total market capitalisation of $779 billion. Two-thirds of them are held by domestic SWFs, demonstrating Abu Dhabi's policy of keeping money in-house while growing its worldwide influence.}

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_{Abu Dhabi's rise to become the world's richest city is more than just the sheer quantity of cash it possesses - although US$ 1.7 trillion is nothing to scoff at. It refers to the city's intentional, diverse, and forward-looking expansion approach.}

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