Arte Capital, one of Asia's biggest asset managers, is collaborating with Abu Dhabi Investment Office to open its first overseas office in Abu Dhabi and launch a $1 billion fund aimed at helping Chinese companies expand their operations in the Mena region.
The Hong Kong-based firm will set up the Arte Capital Middle East unit at Abu Dhabi Global Market and will manage assets and investment funds, arrange deals and credit, and provide advisory services, the Adio said in a statement on Thursday.
The Arte China-Arab Strategic Fund will be managed by Arte Capital and backed by the group’s investors, it said.
The moves are part of a preliminary agreement signed between Badr Al Olama, director general of Adio, and Ethan Chan, chairman of Arte Capital Group, on the sidelines of Abu Dhabi Finance Week.
Arte Capital has received an in-principle approval for a category 3C licence from ADGM's Financial Services Regulatory Authority, according to its website. ADGM will be its third office after its Hong Kong base and one in Shenzhen, in China's Greater Bay Area.
“Abu Dhabi is the gateway for Chinese companies to new markets and new frontiers in the region. As UAE-China economic ties continue to strengthen, a wealth of new expansion opportunities for Chinese companies will unfold," Mr Al Olama said.
"Adio's collaboration with Arte Capital will facilitate and accelerate this growth and enable more Chinese companies to thrive in Abu Dhabi and the Mena region.”
Abu Dhabi is continuing to attract foreign entities as it seeks to establish itself as a financial hub as part of its diversification efforts.
ADGM said on Thursday that 14 major financial institutions, representing combined assets under management of $452 billion, have committed to establishing new operations in the centre.
"We see a rapidly growing demand for asset management and investment banking services in the Middle East region, which is the reason why we took this strategic step to cater to the needs of our clients," Mr Chan said.
"With support from Adio, Arte will connect Middle East capital with Chinese enterprises, enabling them to expand their business locally in the Middle East region and allowing our friends in the Middle East to invest in exciting opportunities."
Adio is seeking to open more offices around the world to attract investors to Abu Dhabi and has offices in the China, France, Germany, Israel, South Korea, the UK and the US. Its Beijing office was opened in 2021.
It has also developed strong ties with Chinese companies. In October, Adio announced that China’s Neta Auto, the electric vehicle brand of Hozon Auto, will conduct research and testing of smart car technologies within Abu Dhabi’s new Smart and Autonomous Vehicles Industry cluster.
Arte Capital, which is a multi-strategy asset manager, operates under the Hong Kong Securities and Futures Commission.
The company recently led a delegation of 10 multibillion-dollar Chinese companies to Abu Dhabi, operating in sectors including education, manufacturing, biotech, gaming and artificial intelligence, to assess expansion opportunities in the emirate.