Abu Dhabi has been named as the world's richest city in sovereign wealth funds, according to Global SWF's October 2024 report. The country's estimated capital of $1.7 trillion exceeds the mark of cities like Oslo, Beijing, Singapore, Riyadh, and Hong Kong, which collectively hold two-thirds of the world's sovereign wealth fund capital ($12.5 trillion as of October 1, 2024). Especially, Oslo which is considered as the home to the world's largest SWF, NBIM.

The assets under management include those of Abu Dhabi Investment Authority (AIDA), Mubadala, Abu Dhabi Investment Council (ADIC), Abu Dhabi Developmental Holding Company (ADQ), Lunate, Abu Dhabi Fund for Development (ADFD), Tawazun, and Emirates Investment Authority (EIA). Besides financial capital, Abu Dhabi also leads in human capital, with 3,107 employees working across its sovereign wealth funds.

 

What are Sovereign wealth funds?

 

Sovereign wealth funds are essentially investment funds owned by governments. These funds are created using surplus money that the government has left over, usually from things like taxes or revenue from natural resources.

The city has witnessed rapid growth in recent decades, attracting a large number of institutional investors who are actively involved in dealmaking. Besides sovereign wealth funds (SWFs), Abu Dhabi is also home to central banks (CBs), public pension funds (PPFs), and royal private offices (RPOs). These various asset owners contribute to the emirate's substantial public capital, which currently stands at US$2.3 trillion.

A major economic source of the city is its oil-producing capacity. Oil was discovered in 1950 in Abu Dhabi and since then the city has become the major oil supplier for the world. In recent times, the city is one of the world's top energy producers and owns 95% of the UAE's oil and 92% of its gas. Looking at the growth chart of the city it is well named as the ‘Capitals of  Capitals’. ADIA was established after Abu Dhabi began selling oil. As the city became a global investor, it combined ADIA and Mubadala to make investing easier.

Apart from oil production, Abu Dhabi has a rich culture and tradition including falconry and pearl diving. Abu Dhabi's energy dominance and economic prowess have elevated its global presence.