Abu Dhabi Crowned Richest City in the World, Outshining Global Giants

Abu Dhabi, the capital of the United Arab Emirates, has earned the title of the richest city in the world, surpassing notable global cities from Europe, the United States, and beyond. As of October 2024, the city’s sovereign wealth funds (SWFs) have reached an impressive $1.7 trillion, putting it at the top of the global financial scene, according to a report by Global SWF.

This wealth positions Abu Dhabi ahead of other cities with substantial sovereign wealth, such as Beijing, Singapore, Riyadh, Hong Kong, and Oslo. Together, these six cities control two-thirds of the $12.5 trillion held by sovereign wealth funds globally as of October 1, 2024.

Abu Dhabi’s financial success stems from its robust network of investment firms. These include key players such as the Abu Dhabi Developmental Holding Company (ADQ), the Abu Dhabi Investment Authority (ADIA), Mubadala, Abu Dhabi Investment Council (ADIC), Lunate, the Abu Dhabi Fund for Development (ADFD), Tawazun, and the Emirates Investment Authority (EIA). Collectively, these firms manage Abu Dhabi’s extensive wealth, driving the city’s economic power.

Oil Discovery Fueled Abu Dhabi’s Wealth

The foundation of Abu Dhabi’s financial success can be traced back to the discovery of oil in 1958. This marked the start of a rapid economic transformation. With the city becoming a major oil producer, its economy flourished, positioning it as a significant global energy hub. Today, Abu Dhabi holds 95% of the UAE’s oil reserves and 92% of its gas reserves, making energy a critical component of its wealth.

In 2024, Abu Dhabi’s principal sovereign wealth funds, including ADIA, Mubadala, and ADQ, invested a substantial $36 billion in international ventures and enterprises during just the first nine months. This level of investment showcases Abu Dhabi’s strategic approach to growing its global influence through diversified assets. An official from one of these funds emphasized, “Our investments across various sectors globally are aimed at ensuring long-term growth and stability.”

Abu Dhabi’s Investment Workforce Leads the World

The city not only leads in terms of financial assets but also in its investment workforce. Abu Dhabi’s sovereign wealth funds employ 3,107 personnel, far surpassing cities like Singapore, Riyadh, Kuala Lumpur, and Dubai, which each have around 1,000 employees working across their fund management divisions. This large workforce is instrumental in managing the city’s vast resources and investments.

“Abu Dhabi’s strong human capital in investment management is a critical asset,” said a spokesperson from Mubadala. “Our expertise allows us to efficiently manage significant global investments, ensuring sustainable returns.”

A Wealth Comparison That Stuns

The scale of Abu Dhabi’s wealth is especially striking when compared to economies like Nigeria. Nigeria’s gross domestic product (GDP) stands at $66.84 billion as of 2023, according to Statista. This makes Abu Dhabi’s sovereign wealth over 25 times larger than Nigeria’s entire GDP. This comparison is even more staggering considering it doesn’t account for private investments within Abu Dhabi, highlighting the city’s unparalleled financial strength.

Abu Dhabi’s rise to becoming the richest city underscores the strategic use of its natural resources, savvy global investments, and a focus on economic diversification. With its sovereign wealth funds playing a crucial role on the global stage, the city has solidified its position as a powerhouse in the world of finance. As the city continues to invest heavily in both domestic and international ventures, its influence on the global economy is only set to grow.