PGIM, the investment management arm of U.S. insurer Prudential Financial, announced the opening of a new office in Abu Dhabi on Thursday. This move aligns with a trend of global money managers establishing a presence in the UAE capital to access its expanding base of affluent clients.
Financial Services Permission and Regional Focus
With $1.33 trillion in assets under management as of the end of June, PGIM has secured a Financial Services Permission (FSP) to operate within Abu Dhabi’s financial centre, ADGM. The office will focus on serving regional institutional and professional clients.
Growing Financial Hub in Abu Dhabi
Abu Dhabi has seen an influx of asset managers, banks, hedge funds, and family offices, driven by factors such as a post-pandemic economic recovery, the UAE’s neutral political climate, favorable time zones, and tax advantages. Notable additions include Ray Dalio’s Bridgewater Associates and Brevan Howard, as well as banks like Goldman Sachs and Rothschild, which are establishing smaller offices in the emirate.
Surge in Company Registrations and AUM
The Abu Dhabi Global Market (ADGM) reported a 31% increase in company registrations in the first half of 2024 compared to the previous year, with assets under management rising by 226%. During this period, Morgan Stanley also received an FSP.
PGIM’s Regional Strategy
PGIM, which has been serving Middle Eastern clients for years, considers Abu Dhabi a crucial market. The firm, which employs over 1,400 people globally across 41 countries, has not yet disclosed how many staff members will be based in its new Abu Dhabi office.
Conclusion
PGIM’s expansion into Abu Dhabi underscores the growing importance of the UAE capital as a financial hub. As global financial institutions continue to establish a foothold in the region, Abu Dhabi is set to enhance its position as a key player in the global investment landscape.
Related Topics:
