Capital Group Establishes Base in Abu Dhabi’s ADGM Amid Global Expansion

Capital Group’s Strategic Expansion into Abu Dhabi

Capital Group, a Los Angeles-based investment management firm with $3.3 trillion in assets under management, is setting up a new office in Abu Dhabi’s Abu Dhabi Global Market (ADGM). This move is part of the firm’s long-term global expansion strategy and is aimed at enhancing its presence in the Middle East, a region it views as having significant growth potential. The announcement was made on Tuesday, with the firm indicating that the office will be its 35th worldwide, pending regulatory approvals.

Mike Gitlin, Capital Group’s chief executive and president, emphasized the firm’s commitment to establishing local capabilities that align with its global investment platform. He stated, ‘We take a long-term and deliberate approach to building our global footprint, and we move only when we have high conviction. This is one of those moments.’ Gitlin further noted that the new office in Abu Dhabi demonstrates the firm’s intent to strengthen relationships with business partners in the region.

Benno Klingenberg-Timm, who is currently the head of institutional business for Europe and Asia, will relocate to Abu Dhabi to oversee the new office. This strategic move reflects Capital Group’s dedication to tapping into the Middle Eastern market, which is home to several prominent sovereign wealth funds and institutional investors.

ADGM’s Role in Attracting Global Investment

Ahmed Al Zaabi, chairman of ADGM, remarked that Capital Group’s decision to establish a presence in Abu Dhabi underscores the importance of regulatory certainty and a stable environment for sustainable growth. He stated, ‘ADGM is built to support global firms operating at scale, and Capital Group’s presence further strengthens Abu Dhabi’s role as a bridge between international capital and regional opportunity.’ This sentiment reflects the ongoing trend of global financial firms recognizing Abu Dhabi as a key financial hub.

The establishment of Capital Group’s office comes at a time when ADGM is increasingly becoming a preferred destination for major asset management firms. Other notable firms like BlackRock, State Street, and PGIM have already set up operations in the financial hub, showcasing its appeal despite geopolitical uncertainties in the region.

Moreover, ADGM has recently reported a 36 percent increase in assets under management, highlighting its growing significance in the global financial landscape. As of the end of 2025, more than 170 asset and fund managers, managing a total of 244 funds, have chosen to operate from ADGM.

Recent Developments in Abu Dhabi’s Financial Sector

Capital Group is not alone in its expansion into Abu Dhabi. On the same day, Man Group, the world’s largest listed hedge fund, announced plans to establish a presence in ADGM, submitting an application for a license to operate. This move is indicative of a broader trend among investment firms seeking to capitalize on the opportunities presented by the Middle East’s dynamic financial environment.

Recent entrants like Barings and Bain Capital have also set up bases in ADGM, further solidifying the region’s status as a hub for financial services. These developments align with Abu Dhabi’s ambition to diversify its economy away from hydrocarbons, positioning the city as a central player in the global financial market.

Frequently Asked Questions

What is Capital Group’s new office in Abu Dhabi focused on?

The new office aims to enhance Capital Group’s presence in the Middle East and strengthen relationships with local business partners.

Why is ADGM attractive to global investors?

ADGM offers regulatory certainty and a stable environment, making it appealing for major financial firms.

Which other firms have established offices in ADGM recently?

Firms like BlackRock, State Street, PGIM, Barings, and Bain Capital have also set up operations in ADGM.

What is the significance of the new office for Capital Group?

The office represents Capital Group’s commitment to local engagement and opportunities in the Middle East.

How has ADGM performed in recent years?

ADGM has reported a 36% increase in assets under management, indicating growth and interest from the financial sector.