PGIM, the investment management division of US insurer Prudential Financial, announced on Thursday the opening of an office in Abu Dhabi, joining a growing number of money managers setting up shop in the United Arab Emirates capital to access an expanding pool of wealthy clients.
With $1.33 trillion in assets under management as of June-end, PGIM has secured a Financial Services Permission (FSP) to operate in Abu Dhabi's financial hub, ADGM, where it will focus on serving regional institutional and professional clients.
In recent years, asset managers, banks, hedge funds, and family offices have bolstered their presence in the UAE, driven by a post-pandemic economic resurgence. Abu Dhabi, home to state funds ADIA, Mubadala, and ADQ, which collectively manage $1.54 trillion in assets according to sovereign wealth fund tracker Global SWF, has attracted notable names such as Ray Dalio, the billionaire founder of hedge fund Bridgewater Associates, who opened a branch of his family office last year, alongside peers like Brevan Howard.
The emirate has also drawn in banks such as Goldman Sachs and Rothschild, traditionally preferring neighboring Dubai as their regional base but now establishing smaller offices in Abu Dhabi and Riyadh. ADGM reported a 31% surge in company registrations in the first half of 2024 compared to the previous year, with assets under management skyrocketing by 226%. Morgan Stanley was among the asset managers granted an FSP during this period.
PGIM has been serving clients in the Middle East for many years, but Abu Dhabi marks its first regional office. "Abu Dhabi remains a key market," said Mohammed Abdulmalek, PGIM's Middle East head. The firm, which employs over 1,400 staff across 41 countries globally, did not disclose the number of employees it plans to deploy in Abu Dhabi.
