In a significant development within the financial landscape of the Middle East, Golub Capital, a prominent U.S.-listed direct lender and private credit manager, has announced the opening of a new office in Abu Dhabi. This move marks a pivotal moment in the growing trend of international firms establishing a presence in the UAE, particularly within its capital, as they seek to tap into the region’s wealth funds and diversify their operations.
The Abu Dhabi Global Market (ADGM) has quickly positioned itself as a competitive financial center, second only to Dubai’s established DIFC. By securing preliminary approval for an operational license at ADGM, Golub Capital joins a roster of prestigious companies aiming to leverage Abu Dhabi’s favorable economic climate. The emirate, holding a substantial 90% of the UAE’s oil reserves, is making concerted efforts to reduce its economic dependency on oil by fostering a robust financial services sector. ADGM’s growing assets—topping $157.2 billion as of June—underscore its appeal, attracting players from various sectors including hedge funds and asset management giants.
The recent surge in private credit signifies a major shift in the financial arena, driven by increasingly stringent regulations that complicate traditional financing routes. The private credit market is forecasted to grow from $1.5 trillion at the end of 2022 to a staggering $2.6 trillion by 2029, according to Preqin data. This burgeoning market is being embraced by wealth funds in the Gulf Cooperation Council (GCC) region, including notable players such as Abu Dhabi’s Mubadala, which has been forming strategic partnerships with renowned investment firms like Apollo and Goldman Sachs. By capitalizing on private credit, these funds are not only enhancing their investment portfolios but also solidifying their position within the international investment landscape.
As a strategic appointment aimed at enhancing Golub Capital’s influence in the Middle East, Naser Almutairi has been designated as managing director. His leadership is expected to spearhead the firm’s initiatives in the region, particularly amidst the backdrop of the Abu Dhabi Finance Week conference, an event gathering financiers from around the globe. His role will not only involve direct management but also the cultivation of relationships within local industries and with the ever-influential wealth funds.
Golub Capital’s foray into Abu Dhabi signals a broader trend of international financial firms recognizing the strategic potential of the Middle East’s rapidly evolving markets. The UAE, with its attractive regulatory environment and commitment to economic diversification, presents fertile ground for investment and growth. As firms like Golub Capital and others continue to navigate this landscape, the implications for the region’s financial ecosystem are profound, potentially establishing Abu Dhabi as a global hub for private credit and alternative financing. The coming years are poised to reshape how capital flows within and beyond the Middle East, as local and international entities converge in pursuit of new opportunities.