Abu Dhabi – A Falcon Economy Where Opportunities are Unlocked and Ambitions Thrive

Abu Dhabi, the capital of the United Arab Emirates, has progressed and developed rapidly to become one of the leading cosmopolitans in the world. With its dynamic and modern lifestyle, impressive architecture, pioneering global green initiatives and plans for the next generation’s transformation, Abu Dhabi is a hot spot for the world’s brightest entrepreneurs and business leaders.

The leverage that Abu Dhabi enjoys, mirrors a robust economy that is driven by a clear vision for growth and diversification. It is an economy that carries in its DNA the characteristics of the nation’s emblem – the golden falcon. A prominent representation of strength, courage, ambitions, and aspirations, the falcon has stood strong for centuries depicting a heritage that overcomes challenges and explores untapped potential. Attributing the “Falcon” to Abu Dhabi and the wider UAE economy is symbolising what is already seen by the visitors and residents of the UAE capital.

The UAE’s resilience and exemplary response to the health, economic and geopolitical challenges witnessed since the emergence of the pandemic in 2020, has been recognised by the IMF, the world bank and other international entities. Driven by a further rise in oil production, as well as significant improvement in the real non-oil GDP, The UAE economy is poised to have grown faster than the economy of other countries in the Middle East and North African region in 2022.

By being home to some of the world’s biggest sovereign wealth funds, an institutional capital estimated at around USD 1.3 trillion, and a real GDP size at circa USD 300 billion at the end of 2022, driven by growth rates in the non-oil sectors Abu Dhabi is equipped with key and factual features to be foreseen as the “capital of capital”.

This notable economic growth, along with the growing confidence of the international community in the UAE, and the country’s strategic geographic position, makes it a destination of choice for investors, businessmen, entrepreneurs, innovators, and other professionals from different parts of the world.

The Emirate has been named the ‘best city to live’ in the Middle East as per the Global Liveability Index 2022. This nomination is the result of the UAE capital’s success in occupying a global leading position across recognized rankings, including being listed as the safest city in the world for the sixth consecutive year by Numbeo’s Safety Index 2022, and being one of the world’s top 10 best cities for expats to live and work in as by the InterNations Expat City Ranking list 2022. In addition to reinforcing its position as a safe and secure place to live, work and invest, Abu Dhabi’s geographical location is also seen as a strategic advantage. Situated between East and West in a time zone that is suitable for over 75 countries and within a 4-hour flight of a third of the world’s population, the ties and connectivity of this business-friendly city are equally strong with Seoul and Mumbai, as they are with New York and London.

Another catalyst of the Falcon economy of the UAE is witnessed in Abu Dhabi’s success in solidifying its position in the international financial industry, in partnership with its international financial centre, the Abu Dhabi Global Market (ADGM), which is set now to become one of the world’s largest International Financial Districts following the issuance of UAE Cabinet Resolution to expand the jurisdiction of Abu Dhabi Global Market (ADGM) to cover a combined geographic area of nearly 1438 hectares (~14.38 million sqm), ten times greater than its current footprint. There has been an increased demand from a wide range of international companies moving to Abu Dhabi, which has been one of the drivers for this expansion.

By Attracting foreign investments and encouraging companies to set up their businesses in Abu Dhabi, ADGM as a financial hub focuses on being a progressive platform for the creation of job opportunities, GDP growth and diversity, and promote economic development. Only few weeks ago the famous investor Ray Dalio, founder of Bridgewater Associates one of the world's largest hedge fund, selected ADGM as its next strategic hub to expand its family office’s global footprint, moreover Goldman Sachs announced plans to open an office in ADGM as part of its plans to expand in the Middle East and North Africa region. This showcase ADGM strong alignment with Abu Dhabi’s vision to create a prominent and diversified falcon economy that serves as a destination of choice for global entities.

The word ‘Falcon’ has been rightly attributed to the GCC region in a report titled The Gulf Falcon and published last year during Abu Dhabi Finance Week (ADFW) by Dr. Nasser Saidi, President of Nasser Saidi and Associates, and former Chief Economist and Strategist of the Dubai International Financial Centre. In the said report Dr. Nasser Saidi praises the success of the gulf region, led by the UAE and Saudi Arabia, the 2 biggest economies in the middle east, in maintaining macroeconomic stability despite global and regional crises.

The UAE and Saudi Arabia want to become global clean energy finance hubs, by driving structural change through financing infrastructure, privatisation, PPP, efficient management of State assets, and de-risking fossil fuel assets; they are financing regionalised globalisation to enable greater economic integration and transformation of the GCC-connected region including the Middle East and East Africa. The region’s falcon economies’ ongoing initiatives in financing digitalisation and investment in new and disruptive technologies will further open new avenues of growth.

In its next phase of diversification, the region will benefit from global fragmentation while choosing to explore new routes to development, investing in digitalisation and new tech sectors. Implementing a regionalised globalisation policy, the rising ‘Falcon Economies’ will drive and support regional economic integration and transformation.