Prudential's global asset management arm debuts in Middle East with office in ADGM

PGIM, the global asset management business of the New York Stock Exchange-listed Prudential Financial has opened an office in Abu Dhabi to expand its operations in the Middle East amid a sharp increase in affluent clients in the region.

PGIM, with $1.33 trillion in assets under management, secured financial services permission to operate in the Abu Dhabi Global Market, the company said in a statement on Thursday.

It aims to offer advisory services to institutional and professional clients in the region.

The company “has served clients in the Middle East for many years”, and is opening an office for the first time in the region, it said.

PGIM, which has 41 offices in 19 countries, appointed Emira Socorro as head of the newly opened office in Abu Dhabi.

“Abu Dhabi remains a key market for us, and the establishment of our new legal entity in ADGM emphasises our ongoing dedication to our presence in the UAE and our commitment to the Middle East,” said PGIM Middle East head Mohammed Abdulmalek.

A number of global financial institutions and money managers are setting up operations in ADGM. This comes as Abu Dhabi focuses to diversify its economy away from oil and amid a significant increase in the number of affluent clients in the wider Middle East – especially within the GCC – in recent years.

Established in 2015, ADGM is one of the world's fastest-growing financial districts. It has recorded rapid growth as Abu Dhabi focuses on attracting more international companies and investors.

In the first half of this year, the capital’s financial centre registered 231 financial services companies – up 31 per cent over the same period last year – with the total number of companies setting up base in ADGM reaching 2,088 by the end of June.

ADGM also issued 1,271 new licences in the first half of the year, up 20.5 per cent on an annual basis, while the number of FSPs granted during the period rose 90 per cent to 42, ADGM said last month.

By the end of June, the number of fund and asset managers operating in ADGM reached 112, managing 141 funds.

Some of the major names within the asset management sector that have been granted an FSP include AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services and Morgan Stanley.

ADGM has also announced new measures to attract more companies to the financial centre.

In July, ADGM said it plans to cut commercial registration licence fees for certain categories while raising them for others, as part of its transitional strategy after the financial district expanded to include Reem Island under its jurisdiction.

The revised fee structure, which will come into effect on January 1, 2025, will see new registrations within the non-financial category halved to $5,000, with annual licence renewal fees cut to $5,000 from $8,000.

The registration fee for the retail category has been slashed by more than 66 per cent to $2,000, with renewals also halved to $2,000. In the financial category, fees have increased to $20,000 from $15,000, with renewals for an annual ADGM licence rising to $15,000 from $13,000.