We recently had the privilege of being part of Abu Dhabi Finance Week, where Bill Stone, the Chairman and CEO of SS&C Technologies, shared his expertise on a panel called “Inside the Hedge Fund Industry.” The conversation revolved around strategies for achieving superior investment returns, especially highlighting how artificial intelligence is revolutionizing investment decisions today. Stone and other panelists pointed out the growing significance of AI in dissecting data, forecasting market trends, and boosting portfolio performance amidst the fiercely competitive financial landscape.
Abu Dhabi, often referred to as the emerging Falcon Economy, marked a substantial achievement in 2024 as its non-oil GDP surpassed the 50% mark, a testament to its successful economic diversification. This milestone is supported by a remarkable surge in foreign direct investment alongside increased activity from sovereign wealth funds (SWFs). Notably, Abu Dhabi has climbed to the top of the global rankings in terms of assets under management, underscoring its appeal to international investors and solidifying its reputation as a hub for financial innovation and stability.
The influence of Abu Dhabi’s sovereign wealth funds further emphasizes its financial prowess and global standing. With institutions like the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental Holding Company (ADQ), and the Emirates Investment Authority (EIA), the city continues to lead the world in SWF capital management.
The panel also delved into the ongoing energy transition, a significant focal point echoing worldwide investment trends. With clean energy investments reaching $1.8 trillion in 2023, experts discussed the potential in renewable energy, hydrogen projects, and energy storage solutions. They also faced topics like project delays and climbing interest rates, highlighting the necessity of innovative investment strategies to successfully navigate these challenges and benefit from the shift to sustainable energy.
Private credit emerged as another vibrant discussion area, recognized as one of the fastest-growing asset classes today. The market has just about doubled over the past five years, soaring to $2 trillion and is projected to hit $2.8 trillion by 2028. Thanks to its attractive premiums over liquid credit options, private credit draws substantial investor interest. The insights shared focused on the advantages of this asset class, such as elevated base rates, while also considering the risks and complexities inherent in private credit investments.
For those keen to explore the opportunities within the Abu Dhabi market further, our “Launching a Fund in the Abu Dhabi Global Market” whitepaper is a valuable resource. Additionally, more information can be accessed through our Private Markets solution page.
Kindly note, SS&C Financial Services Middle East Limited is duly regulated by the Financial Services Regulatory Authority within the Abu Dhabi Global Market.
