Stay informed with free updates
Simply sign up to the Fund management myFT Digest — delivered directly to your inbox.
The $1.3tn asset manager PGIM has become one of the biggest players in its industry to open an office in Abu Dhabi, as the oil-rich emirate seeks to build itself up as a financial hub to rival neighbouring Dubai.
The arm of New York-listed insurer Prudential Financial announced on Thursday that it was opening an office in the Abu Dhabi Global Market centre, its first in the Middle East.
A number of hedge funds and billionaire family offices have set up in the city, which is home to sovereign wealth funds including the nearly $1tn Abu Dhabi Investment Authority.
Abu Dhabi Global Market’s head of market development Arvind Ramamurthy said PGIM’s arrival would “strengthen ADGM’s position”.
PGIM’s new Middle East head Mohammed Abdulmalek said the move “emphasises our ongoing dedication to our presence in the UAE and our commitment to the Middle East”, and he described Abu Dhabi as a key market for PGIM. The asset manager said it had secured a licence to operate in ADGM.
“Middle Eastern sovereign wealth funds along with other institutional clients and evolving family offices are looking for partners who can support them as they strive to deepen the local capital markets and become more than providers of capital to the rest of the world,” said David Hunt, PGIM’s CEO. “It’s important to be close to our partners to work most effectively with them as they achieve these goals.”
For years, global money managers served Gulf clients from offices in Europe, North America or the regional financial hub of Dubai.
Abu Dhabi wants to attract some of that business as it tries to diversify its economy and lessen its dependence on oil. It has sought to convince money managers they will have a better chance of raising funds in the oil-rich state if they demonstrate their commitment there, including by opening offices in the UAE capital.
It is also aiming to draw finance professionals with low taxes, as well as private schools and healthcare.
Other major asset managers have a presence in Abu Dhabi too. ADGM said last month that 112 asset and fund managers now operate there, and that firms including Rajiv Jain’s GQG Partners and Morgan Stanley have obtained licenses. BlackRock registered two “Middle East infrastructure” funds at ADGM last year, the centre’s registry shows.
Billionaires have also set up shop. Ray Dalio, the founder of hedge fund Bridgewater Associates, has opened a family office in Abu Dhabi, while former Apollo Global Management chief executive Leon Black this week announced a new Abu Dhabi branch of his family office Elysium.
This article has been corrected. BlackRock has registered funds in Abu Dhabi but has not opened an office there.
Read the full article here
