World’s richest city: Abu Dhabi’s USD 1.7 trillion SWFs and USD 2.3 trillion capital explained

Mumbai: Abu Dhabi has been recognised as the wealthiest city globally, boasting an astounding USD 1.7 trillion in Sovereign Wealth Fund (SWF) holdings, according to a report by Global SWF. This immense capital surpasses other prominent cities, including Beijing, Oslo, Hong Kong, Singapore, and Riyadh. Combined, these six cities manage SWF holdings worth over USD 12.5 trillion, cementing their status as economic powerhouses.

What sets Abu Dhabi apart is not only its SWF wealth but also an additional USD 388 billion in private holdings managed by its Royal Private Offices (RPOs). These holdings elevate Abu Dhabi’s total assets to USD 2.3 trillion, making it an unparalleled global leader in capital wealth. With such vast resources, the city continues to invest in large-scale infrastructure and development projects, shaping its future as a thriving global hub.

Who Manages Abu Dhabi’s SWFs?

Abu Dhabi’s wealth is managed by several high-performing entities, with the Abu Dhabi Investment Authority (ADIA), Mubadala, and Abu Dhabi Developmental Holding Company (ADQ) at the helm. Supporting these giants are medium-scale funds like the Abu Dhabi Investment Council (ADIC), Lunate, and the Emirates Investment Authority (EIA). Together, they ensure the efficient allocation of assets both domestically and internationally.

In the first nine months of 2024 alone, ADIA, Mubadala, and ADQ invested $36 billion in foreign projects, showcasing Abu Dhabi’s global economic influence. Behind these investments is a workforce of over 3,100 professionals, each contributing to the city’s growing portfolio.

Beyond SWFs: Abu Dhabi’s Expanding Assets

Abu Dhabi’s wealth is not limited to SWFs. It also holds significant assets through its Central Bank, Public Pension Funds, and the private RPOs of its ruling family. Oil and gas remain key contributors, with the city controlling 95 per cent of the UAE’s oil production and 92 per cent of its gas exports. This dominance has made Abu Dhabi a pivotal player in global energy markets.

Strategic investments have allowed Abu Dhabi to diversify its economy. Key sectors such as tourism, real estate, and renewable energy are now flourishing, reducing dependence on oil and gas. As global energy demand surges, Abu Dhabi’s robust oil reserves will continue to drive its economic growth.

Future Growth Prospects

Abu Dhabi’s wealth and strategic vision position it as a leader in the global economy. By leveraging its USD 1.7 trillion SWF and USD 2.3 trillion in total assets, the city is poised for further growth. Large-scale urban development, innovation in renewable energy, and global investments ensure that Abu Dhabi remains a key player in shaping the economic landscape of the future.