German asset manager Patrizia receives licence to open first Middle East office in ADGM

Investment firm says 26th global office will enable it to cater to regional clients 'more effectively'

Abu Dhabi Global Market has recorded sharp growth amid the emirate's efforts to boost its non-oil economy. Victor Besa / The National

German asset manager Patrizia has been granted regulatory approval to start operating at Abu Dhabi's ADGM, joining a stream of international firms tapping into the Middle East's growing investment scene.

The Augsburg-based company, which has about €55 billion ($57.7 billion) in assets under management, received permission from the Financial Services Regulatory Authority to open an office in the financial hub of UAE capital, allowing it to arrange and advise on investments to clients in the region, Patrizia said on Monday.

It will be Patrizia's first office in the Middle East and 26th globally, joining other key locations in Africa, Australia, Hong Kong, Japan, Singapore, the UK and US.

The Frankfurt-listed company's foray into Abu Dhabi is part of a push to expand its footprint in high-growth regions and boost its international partnerships, said Asoka Wohrmann, chief executive of Patrizia.

The move will allow the company cater to its partners in the Gulf region "more effectively", while also enabling it to "build a diversified and sustainable investment portfolio that meets the evolving needs of our clients, while supporting Abu Dhabi’s continued rise as a leading financial hub", he added.

Patrizia is the latest addition to a growing list of asset managers, insurers, financial institutions and investment houses that have set up office in Abu Dhabi, as the emirate continues to boosts the financial sector to support its economic diversification plans.

New York-based BlackRock, the world's top asset manager with nearly $11.5 trillion in AUM, in November received a commercial licence to operate in ADGM.

In September, Stonepeak, a US-based alternative investment company with $71.2 billion of AUM, received regulatory approval to set up base at ADGM, to arrange and advise on investment opportunities in the UAE, the Arab world's second-largest economy.

Also in September, ADGM welcomed its first trillion-dollar asset managers: PGIM, the global asset management business of the New York Stock Exchange-listed Prudential Financial, and Chicago investment firm Nuveen, with both aiming to expand their operations and client bases in the Middle East.

Establishing its presence in the Middle East will help Patrizia "deepen relationships and deliver tailored investment strategies that fully align with the priorities of our local clients", said JC Klein, who will lead the new Abu Dhabi office.

"This move also underscores Patrizia’s commitment to ... contributing to Abu Dhabi’s position as a leading, global financial hub. By combining local proximity with global expertise, we aim to create value for our investment partners and support the impressive economic growth of the region," he added.

Established in 2015, ADGM on Al Maryah Island has grown rapidly, with AUMs in the on-shore financial hub rising by 215 per cent annually in the third quarter of 2024, according to the latest data from the centre.

The total number of operational entities within ADGM’s jurisdiction increased to 2,251 during the three-month period, a 31 per cent rise on an annual basis. The number of workers employed in ADGM also rose by 35 per cent year-on-year to 4,433 by the end of the June-September quarter of last year.