PGIM, the investment management division of U.S. insurer Prudential Financial, has announced the opening of its new office in Abu Dhabi, marking a significant expansion into the United Arab Emirates (UAE) capital. This move positions PGIM alongside a growing number of financial institutions establishing a presence in the region to access a burgeoning pool of wealthy clients.
As of the end of June 2024, PGIM manages $1.33 trillion in assets, and the Abu Dhabi office will operate under a Financial Services Permission (FSP) granted by the Abu Dhabi Global Market (ADGM). This new office will cater to regional institutional and professional clients, further solidifying PGIM’s commitment to the Middle East market.
The influx of asset managers, banks, and financial institutions into Abu Dhabi reflects the UAE’s post-pandemic economic resurgence, its politically neutral stance, favorable time zones, and attractive tax environment. The UAE capital has become a magnet for financial giants, including state funds like ADIA, Mubadala, and ADQ, which collectively manage $1.54 trillion in assets.
In recent years, Abu Dhabi has seen an increase in high-profile financial entities setting up operations. Notable examples include Ray Dalio, founder of the hedge fund Bridgewater Associates, who opened a branch of his family office in the city last year, and other prominent hedge funds like Brevan Howard. Banks traditionally based in Dubai, such as Goldman Sachs and Rothschild, are also establishing smaller offices in Abu Dhabi and Riyadh.
The ADGM has reported a 31% surge in company registrations in the first half of 2024 compared to the previous year, alongside a remarkable 226% increase in assets under management. This growth trend has also attracted other major asset managers, including Morgan Stanley, which recently received an FSP.
PGIM, which has served clients in the Middle East for many years, sees Abu Dhabi as a crucial market for its future growth. Mohammed Abdulmalek, PGIM’s Middle East head, emphasized the importance of the new office in the firm’s regional strategy.
“Our presence in Abu Dhabi will strengthen our ability to serve clients in the region with tailored investment solutions,” Abdulmalek said.
The firm, which boasts over 1,400 employees across 41 countries, has not yet disclosed the specific number of staff that will be employed at the Abu Dhabi office. However, the expansion underscores PGIM’s ongoing commitment to broadening its global footprint and enhancing its service capabilities in key financial markets.
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