RANKED: World’s richest city has Rs 142 lakh crore in assets, it is not Singapore, New York, Tokyo or Hong Kong
A recent report from Global SWF has revealed the latest global ranking of cities based on the capital managed by their Sovereign Wealth Funds. According to the data and research, Abu Dhabi has been named the world’s richest city. As of October 2024, the UAE emirate holds an impressive USD 1.7 trillion (approximately Rs. 142 lakh crore), securing the top position. This substantial amount of capital allows Abu Dhabi to surpass other wealthy cities like Oslo, Beijing, Singapore, Riyadh, and Hong Kong. The combined value of Sovereign Wealth Funds across these six cities totals around USD 12.5 trillion (over Rs. 1,000 lakh crore).
It is also important to note that the reported USD 1.7 trillion does not account for the USD 344 billion (Rs 28 lakh crore) managed by Abu Dhabi’s Royal Private Offices (RPOs), which handle private investments for the ruling family. Including these private assets would further increase Abu Dhabi’s overall wealth.
Note: A Sovereign Wealth Fund (SWF) is a government-run investment fund that invests in real and financial estates, with the profits being used to support the country’s economy or fund future expenditures.
Abu Dhabi – beyond Sovereign Wealth Funds
For the past few decades, Abu Dhabi, often referred to as “the Capital of Capital,” has built an impressive portfolio of institutional investors, making it one of the world’s largest and most active dealmakers.
Beyond Sovereign Wealth Funds (SWFs), the emirate hosts various other asset owners, including Central Banks (CBs), Public Pension Funds (PPFs), and family offices associated with royal family members, also known as Royal Private Offices (RPOs).
Currently, Abu Dhabi’s public capital is estimated at USD 2.3 trillion, with projections indicating it could reach USD 3.4 trillion by 2030.
Who manages Abu Dhabi’s Sovereign Wealth Funds
Abu Dhabi’s sovereign wealth funds are managed by several prominent investment organizations. These include the Abu Dhabi Investment Authority (ADIA), Mubadala, the Abu Dhabi Investment Council (ADIC), Abu Dhabi Developmental Holding Company (ADQ), Lunate, the Abu Dhabi Fund for Development (ADFD), Tawazun, and the Emirates Investment Authority (EIA).
In the first nine months of 2024 alone, Abu Dhabi’s leading sovereign wealth funds, such as ADIA, Mubadala, and ADQ, invested a remarkable USD 36 billion (Rs 3 lakh crore) in global projects and businesses. Furthermore, Abu Dhabi leads the world in terms of investment fund workforce, with 3,107 employees, far surpassing other financial hubs like Singapore, Riyadh, Kuala Lumpur, and Dubai, each employing around 1,000 people in fund management departments.
Primary source of income for Abu Dhabi
The city’s journey to immense wealth began with the discovery of oil in 1958, which turned Abu Dhabi into a major oil producer and key player in the global energy market. Today, Abu Dhabi controls 95% of the UAE’s oil reserves and 92% of its gas reserves, solidifying its position as a global energy powerhouse.
The primary source of income for Abu Dhabi is its oil and gas industry, with the emirate holding one of the world’s largest reserves of crude oil. This sector has been the backbone of Abu Dhabi’s economy for decades, with revenues from the export of oil and natural gas significantly contributing to its GDP. These earnings fund essential infrastructure projects, public services, and the government’s efforts to diversify the economy. Although Abu Dhabi is actively investing in sectors like tourism, real estate, and renewable energy to reduce its reliance on hydrocarbons, the oil and gas sector remains a critical pillar of its economy.