Abu Dhabi Finance Week to begin today as emirate brings influx of global asset managers

The four-day event will discuss Abu Dhabi's falcon economy, AI and digital assets

Abu Dhabi Finance Week. General images. Victor Besa / The National

Abu Dhabi Finance Week, ADGM's key financial event, will begin today as the UAE capital continues to attract global asset managers amid its economic diversification efforts.

Double seems to be the common theme this year with Welcome to the Capital of Capital as the banner for the third edition of the event, taking place from December 9-12.

The number of asset and fund managers operating within the jurisdiction reached 128 by the end of the third quarter, managing 156 funds, with the rise of assets under management in the centre not only doubling, but tripling, with a 215 per cent annual increase in the three-month period. This demonstrates increased participation in ADGM and its business events, according to the event's organiser. More than 20,000 delegates from 100 countries are expected to attend Abu Dhabi Finance Week.

“The growth of ADFW as a platform is in many ways correlational to the growth of ADGM as a marketplace,” said Chris Hughes, the finance event's editor-in-chief.

“The demand, to speak, at this year's edition has been quite literally off the charts. We’ve gone from 290 speakers in 2023 to 620 in 2024,” he told The National. This increased demand also led to the establishment of a second event taking place this week ahead of ADFW called Abu Dhabi Business Week that focuses on aspects beyond finance that nurture economic activity.

Mr Hughes said that over the past year, ADGM visited locations such as Shanghai, Paris, New York and others to promote ADGM and ADFW and demonstrated that the demand for setting up meetings had reached a tipping point.

“Our initial objective with ADFW was to become an important annual meeting for the regional marketplace,” Mr Hughes said. “Now with the senior leadership of over $42 trillion of AUM visiting the same event at the same time, it’s clear we are likely now one of the most important financial gatherings in the world.”

People are no longer “primarily coming to fundraise from Abu Dhabi. It’s a much more nuanced dynamic now”, Mr Hughes added.

ADGM, which has expanded its jurisdiction to include Reem Island, has seen an influx of key global asset managers. Among the companies that have set up operations in the financial centre in the third quarter are PGIM, a $1.33 trillion US asset manager, Stonepeak, a US-based alternative investment company with $71.2 billion of assets under management and Nuveen, which manages $1.2 trillion of assets. Last month, BlackRock, the world's biggest asset manager, also received a commercial licence to operate in Abu Dhabi.

“We've been covering the region with a very successful coverage model,” Mohammed Abdulmalek, head of Middle East at PGIM told The National.

“Opening an office in Abu Dhabi is an add on to that strategy, and we want to align ourselves with Abu Dhabi's very promising growth story, not only by bringing our capabilities, but by striving to see the world from their perspective.”

The company, which serves financial institutions, sovereign wealth funds and sophisticated family offices, aims to grow its clients in the region through the new office.

“We want to enhance that through the local set-up, as well as grow beyond to things that we didn't have the bandwidth to cover from abroad. Now we are in the region, we will be able to go to a broader spectrum of clientele base.”

Growth drivers

Abu Dhabi Finance Week is set to discuss Abu Dhabi’s falcon economy and key drivers of its growth, the importance of the Global South as well as growing economic relations between the UAE and China.

Speakers include Larry Fink, chairman and chief executive of BlackRock, the world’s biggest asset manager, Georges Elhedery, group chief executive of HSBC and Ray Dalio, the billionaire founder of Bridgewater Associates, the world's largest hedge fund.

Artificial intelligence will also be in focus as the UAE focuses on developing the advanced technology sector with investments from global companies. In April, Microsoft announced $1.5 billion worth of investments in Abu Dhabi's G42 in a boost to UAE's AI ambitions.

Bitcoin will also be placed front and centre, with the Binance chief outlining the vision for the next phase of growth for the company. Abu Dhabi is also hosting another event around crypto named Bitcoin Mena, highlighting the importance of crypto and developing its use in the emirates.

UAE-China strengthening relations

The UAE-China economic ties, which are strengthening on the back of growing trade and investment between the two countries, will be another area of focus.

China is the UAE’s leading trade partner with non-oil bilateral trade worth Dh296 billion ($81 billion) last year, up 4.2 per cent from the previous year.

Last month, Abu Dhabi clean energy company Masdar and China’s Silk Road Fund signed an initial agreement to jointly invest in renewable energy projects in Belt and Road Initiative countries, mainly in developing countries. The Silk Road Fund plans to invest up to 20 billion yuan ($2.76 billion) in projects alongside Masdar.

The UAE's entry into Brics along with other countries this year is expected to further boost ties with China.

“At a time of global dislocation and fragmentation, the UAE led by Abu Dhabi is creating new linkages,” Nasser Saidi, president of Nasser Saidi and Associates told The National.

The UAE-China relationship “has gone beyond the traditional trade and investment route and moved on to co-operation in the financial sector, technology, renewable energy, tourism and even education”, Mr Saidi said. Increased integration in banking and payments systems between the two countries is expected in the medium term “which would ably support trade and investment flows”, he added.