World’s Richest City: Abu Dhabi Tops Sovereign Wealth Fund Rankings
A recent report released by Global SWF has revealed that Abu Dhabi is now the richest city in the world. This report was based on its sovereign wealth fund assets. With an estimated $1.7 trillion in investments across its various SWFs, Abu Dhabi has surpassed Oslo, which hosts the world’s largest individual fund.
The Abu Dhabi Investment Authority and Mubadala Investment Company are two of the main SWFs contributing to this success. Together these institutions manage $1.7 trillion in assets just ahead of Oslo’s Government Pension Fund, which holds over $1.6 trillion.
The financial influence of the Gulf state of Abu Dhabi doesn’t stop there. According to Global SWF currently, the total public capital in the city is currently valued at $2.3 trillion. It is expected to see a big growth and it can rise to $3.4 trillion by the year 2030. This remarkable growth is why Abu Dhabi is being dubbed the “Capital of Capital.”
According to the report Abu Dhabi, Oslo, Dubai, Beijing, Singapore, Riyadh, and Hong Kong are the leading cities in financial growth. Till October 2024, globally the sovereign wealth funds manage total assets of $12.5 trillion. According to the report the 2/3 of the funds lie in these cities.
The founder and managing director of Global SWF Diego López highlighted the growing importance of these cities making these the financial centers of the globe. He also said that the report highlights the increasing concentration of sovereign wealth fund capital in a select few cities showcasing their significant role in global finance.
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How did Abu Dhabi become a global financial superpower?
The wealth in Abu Dhabi started with the discovery of oil in 1958, this led to the formation of the Abu Dhabi Investment Authority (ADIA) to manage its assets.
The approach of Abu Dhabi involves multiple sovereign wealth funds like ADQ and Mubadala, each with unique strategies. Mubadala has grown significantly and raised $18 billion from global investors. ADQ which was founded in 2018, and Sheikh Tahnoun’s Royal Group have also made major strides by investing in sectors like AI and healthcare, ensuring Abu Dhabi’s financial influence extends far beyond oil.
