In a significant development for the financial landscape of the Middle East, U.S.-based Golub Capital has announced the opening of a new office in Abu Dhabi. This decision comes in the wake of an increasing trend among international firms looking to tap into the wealthy markets of the Gulf region. With Abu Dhabi positioning itself as a burgeoning financial hub, Golub Capital joins the ranks of numerous companies aiming to enhance their presence in a region rich with investment opportunities, especially in private credit.
Abu Dhabi, home to 90% of the United Arab Emirates’ oil reserves, is historically known for its oil-driven economy. However, recent initiatives aimed at diversifying its economic structure are gaining traction. By launching Abu Dhabi Finance Week, regional and global financiers congregated to discuss innovative systems and collaborations that can stimulate growth beyond traditional sectors. An example of such initiatives is the Abu Dhabi Global Market (ADGM), which is emerging as a key player in attracting multinational financial institutions. This development aligns with UAE’s broader vision to create a sustainable economy, capitalizing on the region’s wealth and strategic location.
Golub Capital has not only received preliminary approval to operate within the ADGM but has also appointed Naser Almutairi as the managing director for the Middle East. With over $70 billion in capital under management, Golub Capital’s entry into the UAE signifies a strong commitment to the Middle Eastern market. As private credit continues to grow—anticipated to increase from $1.5 trillion to $2.6 trillion by 2029—firms like Golub Capital are seizing the moment to establish footholds in a market characterized by higher yields and a demand for alternatives to traditional lending.
While ADGM is making strides, it still finds itself in competition with Dubai’s Dubai International Financial Centre (DIFC), which has historically been the leading financial hub in the UAE. Yet, despite this competition, ADGM’s assets under management have surged to $157.2 billion, indicating a burgeoning attraction for financial services. Major asset management firms, including BlackRock and Brevan Howard, have opted for ADGM as their regional base, revealing a trend towards optimizing their investment strategies amidst evolving regulatory frameworks.
The move by firms such as Golub also opens up avenues for partnerships with sovereign wealth funds, a prominent feature of the UAE’s financial ecosystem. For instance, Abu Dhabi’s Mubadala Investment Company, with its substantial $330 billion portfolio, offers both capital and collaboration opportunities in private credit markets. By forming alliances with major players like Apollo and Goldman Sachs, Mubadala emphasizes the region’s commitment to expanding its influence in the global investment community.
As Golub Capital begins its journey in Abu Dhabi, its role in shaping the private credit landscape will be closely monitored. This development not only underscores the attractiveness of the UAE for foreign investments but also reflects a shift towards innovative lending solutions that cater to the evolving needs of businesses within this dynamic region.