The investment management division of American insurer Prudential Financial, PGIM, said on Thursday that it has opened an office in Abu Dhabi. This money manager is one of many that have come to the capital of the United Arab Emirates to access a growing base of wealthy investors.
As of the end of June, PGIM had $1.33 trillion in assets under administration. It has been granted a Financial Services Permission (FSP) to operate in the ADGM, Abu Dhabi’s financial center, serving institutional and professional clients in the region.
In recent years, asset managers, banks, hedge funds, and family offices have increased their presence in the UAE. Factors such as the post-pandemic economic recovery, the UAE’s relatively neutral political position, its convenient time zones, and its tax-free status have all contributed to this trend.
Ray Dalio, the billionaire founder of Bridgewater Associates, and his peer Brevan Howard are prominent figures in Abu Dhabi. The sovereign wealth fund tracker Global SWF reports that state funds ADIA, Mubadala, and ADQ manage $1.54 trillion in assets.
Banks like Goldman Sachs and Rothschild have historically preferred neighboring Dubai as their regional headquarters. However, they are increasingly opening smaller offices in Abu Dhabi and Riyadh and are also being drawn to the oil-rich emirate.
The financial center reported a 31% increase in company registrations at ADGM in the first half of 2024 compared to the same period the previous year. Additionally, assets under management surged by 226%. Among the asset managers to obtain an FSP throughout the time was Morgan Stanley.
Although Abu Dhabi will be PGIM’s first location in the Middle East, the company claimed to have served clients there “for many years.”
Mohammed Abdulmalek, its Middle East director, stated that “Abu Dhabi remains a key market.”
The company employs over 1,400 people worldwide and distributes them across 41 nations. However, it did not disclose the number of people it plans to hire in Abu Dhabi.
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