How family offices are driving growth, diversification in Abu Dhabi

Family offices in Abu Dhabi are becoming increasingly pivotal to the emirate’s economic growth and diversification.

Representing nearly 90 per cent of privately owned businesses in the UAE, family-owned entities are integral to the economic fabric of the country, contributing around 60 per cent of the GDP and employing 80 per cent of the private sector workforce, according to a report by KPMG International.

These businesses, with significant investments across key sectors such as real estate, construction, retail and finance, are not only driving the local economy but also helping Abu Dhabi achieve its broader goals of diversification and sustainability.

Their rising influence was a key topic of discussion during the recent Al Multaqa business gathering, where family office representatives, government officials, and industry leaders came together to explore new economic developments and investment opportunities in the emirate.

The evolution of family offices

Family offices in Abu Dhabi have evolved from traditional wealth management entities into key investors in infrastructure, technology, and other critical sectors.

These entities are collaborating closely with the public sector, helping shape the future of key industries such as energy, manufacturing, and technology, all while fostering innovation and sustainability.

Abu Dhabi’s economic diversification strategy is gaining momentum as these family offices extend their investments into sectors beyond real estate and construction, including advanced technologies and clean energy. Their role in fostering innovation was highlighted during the fourth Al Multaqa meeting, where Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), outlined the significant strides made in the emirate’s economy.

“Abu Dhabi continues to position itself as a premier hub for talent, investments, and businesses,” said Al Zaabi. “Driven by our visionary leadership and supported by our ‘Falcon Economy’ initiatives, we are transforming Abu Dhabi into a diversified, innovative, and sustainable economy. The growth and resilience of our economy are a testament to our unwavering commitment to driving economic progress.”

The role of family offices in Abu Dhabi’s industrial boom

Family offices not only contribute to economic growth through investments in real estate and infrastructure but are also at the forefront of Abu Dhabi’s industrial expansion.

Under the Abu Dhabi Industrial Strategy (ADIS), launched in mid-2022, the emirate has seen substantial improvements in its industrial sector.

Industrial GDP surged from Dhs83bn in 2022 to Dhs101bn in 2023, while new industrial Rowad licences under ADIS rose by over 40 per cent in the second year compared to the first.

The industrial sector’s growth is complemented by a robust rise in local content certification, with Dhs21bn in government tenders awarded to companies with local content certificates by March – a 33 per cent increase from the previous year. This initiative, part of the Abu Dhabi Local Content Programme, aims to boost non-oil sectors, advance technology adoption, and improve Emiratisation rates.

“The achievements of ADIS over the past two years affirm our position as the region’s leading industrial hub,” added Al Zaabi. “We are committed to shaping the future of manufacturing and ensuring that Abu Dhabi remains at the forefront of innovation.”

Expanding investment opportunities

Abu Dhabi’s investment landscape continues to thrive, with the Abu Dhabi Investment Office (ADIO) playing a critical role in driving this momentum.

ADIO has attracted over 165 investors across sectors like financial services, energy, and technology, and has signed 27 agreements focused on clean energy, smart vehicles, and advanced technologies.

Real estate agreements signed

One of ADIO’s standout initiatives is the Musataha Programme, which offers private developers the opportunity to invest in government-owned land for high-impact projects. Several agreements were signed during the latest Al Multaqa meeting, including the development of two commercial facilities and a concrete manufacturing plant, further leveraging Abu Dhabi’s public land assets for sustainable, community-focused projects.

For instance, a new Dhs26.6m Community Market will be built in Al Nahdah Al Askariah, providing retail and community services to residents.

In Al Ain, a commercial facility will be constructed with parking areas, landscaping, and a food truck park. Additionally, a Dhs12m concrete manufacturing facility will be developed in Madinat Zayed, showcasing the continuing growth of Abu Dhabi’s industrial sector.

With its deep-rooted commitment to innovation and growth, Abu Dhabi is positioning itself to be a global economic powerhouse in the years to come. Family offices, in partnership with the public sector, will remain at the heart of this transformation, ensuring that the Emirate continues to thrive across key industries and beyond.