Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
Abu Dhabi has been ranked the second-best financial centre in the MENA region in the latest Global Financial Centres Index (GFCI). The city was highlighted for its strong legislative frameworks and was forecast to be one of the centres with high growth potential in the coming years.
Abu Dhabi placed 38th globally, placing it behind neighbouring Dubai which ranked 12th. The city was highlighted by respondents as 11th most likely to become more significant in the near future, a strong signal of the capital's growing presence on the world stage.
"A robust and transparent regulatory framework is essential for ensuring market stability and fostering investor confidence, which are critical for the competitiveness of financial centres like Abu Dhabi," Project Manager from an Investment Firm in New York, who was quoted in the GFCI report.
"Strong rule of law and low levels of corruption are vital for creating a trustworthy environment where investments are protected, enhancing Abu Dhabi's appeal as a financial hub."
Published in conjunction between the China Development Institute (CDI) in Shenzhen and London-based think tank, Z/Yen Partners, the GFCI aims to give a comprehensive view of the competitiveness of financial centres around the world. It compiles 140 instrumental factors, from sources like the IMF and World Bank alongside questionnaires from 5,000 respondents.
This year's listing saw Abu Dhabi improve its overall rating on the index, despite losing 3 places overall since last year when it ranked 35th. The capital made large gains in the Finetch space where it gained 10 places and ranked 32nd overall.
The latest results are indicative of the gradually increasing influence of Abu Dhabi as a global financial centre. Despite still being somewhat behind neighbouring Dubai, the city has been undergoing a rapid transformation in recent years led by Abu Dhabi Global Markets (ADGM), which has seen some of the biggest finance houses in the world open shop.
In 2024, ADGM saw a 245% increase in assets under management and saw several leading financial institutions, including global giants such as BlackRock, Polen Capital, and Morgan Stanley set up in Abu Dhabi. ADGM also saw the opening of several family offices from the world's richest households.
All of this is underpinned by the growing geography of the Abu Dhabi's financial centre, adding an extra 500,000 sqm through the addition of Al Reem Island, and the growing maturity of its legislative infrastructure.
