Abu Dhabi has been recognized as the world’s wealthiest city in terms of sovereign wealth funds (SWF) followed by Oslo, Beijing, Singapore, Riyadh and Hong Kong-as of October 2024. What is the sovereign wealth fund? It is a government-owned investment pool created from country’s surplus reserves, often accumulated through government-generated revenue. These funds then contribute to the nation’s economy and benefit its citizens.
Abu Dhabi is holding staggering 1.7 trillion USD in its sovereign wealth fund. These assets are managed by key institutions such as Abu Dhabi Investment Authority (ADIA), Mubadala, the Abu Dhabi Investment Council (ADIC) and the Abu Dhabi Development Holding Company (ADQ), contributing to a substantial global sovereign wealth fund pool.
The emirate holds one of the world’s largest reserves of crude oil and 95% of the UAE’s oil and 92% of its gas. Hence, the primary source of income for Abu Dhabi is its oil and gas industry. The revenues generated from the export of oil and natural gas contribute significantly to Abu Dhabi’s GDP, funding infrastructure projects and public services. Government entities as abovementioned Mubadala were set up to ease the investment and they are doing great job. The city’s public capital is projected to grow significantly by 2030, further solidifying Abu Dhabi’s role as a premier global financial hub and leader in wealth management and economic development, underscoring its global influence.
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