Following decades of record-setting urban development, making it one of the world’s top places to visit, the UAE has begun setting similar strides in the global financial economy. In 2007, Dubai broke into the Global Financial Centres Index, coming in at 25th place. And in the years since, it has risen rapidly through the ranks, to an all-time high of 8th place in 2019, and is currently holding at 17th; ahead of Berlin, Geneva, Luxembourg, and many other major European cities.
At the moment, Dubai is the leading financial hub in the MESA (Middle East, Africa, and South Asia) region, followed by Abu Dhabi, which is 31st in GFCI rankings. This rise has been fuelled by an unprecedented expansion of financial services in the UAE. Strategically positioned between east and west, the UAE is home to dozens of investment funds – both international and local, providing highly coveted financial solutions to thousands of clients across the country and the wider Middle East.
In this article, we explore these investment funds. Here are 20 of the biggest private investment funds operating in the United Arab Emirates, in order.
Investment funds in the UAE
1. Dubai Investment Fund – $320 Billion AUM
With more than $320 Billion AUM (assets under management) and over 7200 clients spread across 61 countries, Dubai Investment Fund is one of the biggest asset management firms in the Dubai International Financial Centre. Established in 2001 in Dubai, the firm employs a total of 920 consummate finance professionals, with an average of 17 years of industry experience. DIF manages financial resources through diversification into new asset classes and growth oriented investments.
Across the real estate, infrastructure, health care, and other legacy sectors of the economy, DIF has consistently won market-leading returns for its clients. It practices multiple investment strategies, including equity, multi-asset, alternative investments, and liability investments. Also, investors who are so inclined would be relieved to know that DIF also integrates ESG considerations and offers a sustainable investing approach.
As its name implies, the Dubai Investment Fund’s office headquarters are located on Boulevard Plaza in Dubai. They also maintain offices in London, Sydney, Mumbai, Tokyo, New York, Frankfurt, Zurich, and a few other cities across Europe and Asia.
2. KAMCO Investment Company – $14.6 Billion AUM
Established in Kuwait in 1998 and listed on Bursa Kuwait in 2003, KAMCO is a truly enormous financial services provider. Although they are headquartered in Kuwait, they have built a significant presence in the UAE since they opened a branch in the Dubai International Finance Centre in 2016.
Over their 24 years of operation, they have built an extensive track record in multiple sections of the financial markets – wealth management, asset management, investment banking, brokerage, and even equity research. Its investment banking arm has an estimated $29.2 Billion in successful transactions under its belt. And as for asset management, as of December 2021, they currently have over $14.6 Billion in assets under management.
Currently, KAMCO investment company is the 5th largest in all of the Gulf cooperation countries. By following a strict doctrine of prudence, innovation, and intelligent market research, they were one of the few funds to report a profit in 2008, despite the well-publicized turmoil of that period. In recognition of their efforts, they have won dozens of awards, most recently the “Best M&A Investment Bank in the Middle East” award in the February of 2020.
3. SHUAA Capital – $13 Billion
Established in 1979 as the Arabian General Investment Corporation, SHUAA capital is the oldest surviving fund on this list. The firm has kept going through several periods of financial turmoil, especially the Asian crisis of 1997 and the financial crisis of 2008. More importantly, it has been here for almost all of the development of the modern UAE, contributing, where possible, to the country’s growth.
The company majorly focuses on two segments of the financial markets – asset management and investment banking, through which it offers numerous financial products and services. Currently, the fund sits on an estimated $13 Billion in assets under management.
The firm has been through a series of rebrandings, including a name change at the turn of the century and a merger with the Abu Dhabi Financial group in 2016. And more recently, it has aligned with the ESG aspirations of the UAE government, dedicating resources to ensuring sustainability in its operations. At the last count, the company employs workers from across 20 different countries, 25% of whom are women.
As is expected, the firm has won quite a litany of awards. The most recent one is the “Best Asset Management & Investment Banking Firm – Middle East” award, presented by the MEA Business Awards.
4. Emirates NBD Asset Management – $6.1 Billion
Established in 2006, EMBD has grown into becoming one of the top 5 asset managers in the Dubai Internation Financial Centre. Although its a subsidiary of the giant Emirates NBD bank (the UAE’s second-biggest bank, with AED 625 Billion in assets), it has enough independence to be nimble as required in the fast-moving world of investment, while retaining enough oversight from the parent bank to keep everything in line.
EMBD’s major unique selling proposition is that it offers a truly diverse array of conventional and sharia-compliant funds; across the equity, fixed income, global multi-asset, and money market asset classes. This way, its portfolio managers can design completely unique portfolios to meet the specifications of every one of their clients.
As of December of 2021, EMBD controls a total of $6.1 Billion in assets under management from a coterie of HNWIs, pension funds, SWFs, retail investors, family offices, and so on. Its REIT – EMBD REIT was listed in 2017; it now has a market cap of $107.5 Million and is one of the only two REITs listed on NASDAQ Dubai.
For its giant strides, EMBD has won quite a few awards. The most recent one was the “Global Sukuk Strategy (3 Years)” at the Bonds, Loans & Sukuk Awards in 2021.
5. Dubai investments – $6 Billion AUM
Dubai Investments is a pioneer in the UAE financial market. Set up 27 years ago in 1995, DI was one of the first entrants into the then-fledgling Dubai International Finance Centre. It was also one of the first companies to attain a listing on the Dubai Financial Market. As it does anywhere, this kind of longevity portrays an image of a matured company that has reached strategic stability.
Over the years, it has attracted more than 15,000 shareholders and currently controls 22 Billion Dirhams (〜$6 Billion) in assets under management. It maintains a presence in over 23 sectors of the economy, including real estate, construction, healthcare, financial services, and education. All of which are managed by its 3,800 employees out of its office in Dubai.
In line with the UAE government’s lofty sustainability goals, Dubai Investments provides special consideration for companies producing products of the future. It also actively practices efficient energy use and environmental preservation in its activities and promotes the same in its portfolio companies.
6. Alkhair Capital – $3 Billion AUM
Located in the lofty Emirates Financial Towers in Dubai International Financial Centre, Alkhair is another one of the biggest investments in the UAE. It has a rich history, with its roots in Bahrain, being a subsidiary of the popular Bank Alkhair.
Founded in 2014, the firm is dedicated to providing Sharia-compliant Islamic investment services to a burgeoning clientele in the Middle East; who want to stay true to their deen while participating in the financial markets.
They work across multiple aspects of the financial markets, including fund and investment management, capital markets, corporate finance, and private equity, providing such services as investment banking, asset management, custody services, brokerage, and market research. As of Q1 2022FY, the fund has $3 Billion in assets under management.
7. Gulf Capital – $2.5 Billion AUM
Gulf Capital is the first on this list that’s located outside of Dubai. A self-professed, socially conscious firm, Gulf Capital invests in growth markets across private equity, private debt, and real estate. With 16 years of experience under its belt, the company controls $2.5 Billion in assets under management and has so far made 35 investments.
A thematic investing firm, Gulf employs 48 people, 18 of whom are finance professionals with years of experience in the industry. Their strategy is to identify promising teams leading businesses in the core sectors of the economy of the future. Not only does this strategy secure long-term returns, but it also helps drive beneficial growth for the economy and the community in the regions as a whole.
The sectors that they invest in include technology/fintech, healthcare, business services, consumer products, and the sustainable economy. With a track record in 64 countries, companies like ART Fertility Clinics and the Medica Group, among others on their portfolio, there don’t seem to be any clouds on the horizon for Gulf Capital.
8. ADCB Asset Management – $2 Billion
Based in Abu Dhabi’s ADGM, ADCB is another leading asset management firm in the UAE. Compared to most of the funds on this list, it is fairly young, as it was established in 2018. However, it has grown at an impressive speed and now controls over $2 Billion in assets under management.
It introduced some of the earliest index funds into the UAE’s financial market – ADCB Arabian Index Fund and the ADCB MSCI UAE Index AED.
Its strategy is to let its clients choose between three options – self-directed investments, advisory solutions, and discretionary investment management. By maintaining such transparency in its strategies, it has been able to build exceptionally strong client relationships; hence it’s controlling $2 Billion AUM, only 4 years into its existence.
With self-directed investments, the client has full control over investments, which are then executed through ADCB’s impressive network of third-party brokers. With the advisory solutions option, they let the firm go shopping for opportunities while they retain the authority to make final decisions. And with discretionary investment management, they fully let go of the reins, allowing ADCB to take control.
9. Mashreq Capital – $1.8 Billion
A lot of the investment funds on this list are subsidiaries of bigger banks, and Mashreq Capital is one of them – it’s 100% owned by Mashreq Bank, the UAE’s sixth-biggest bank, with ~AED 163 Billion in total assets.
Established in the Dubai International Financial Centre in 2006, Mashreq Capital has grown an extensive collection of conventional and shariah-compliant offerings. It controls six major funds and then private funds for UHNWIs. Some of its funds are domiciled in Bahrain and others in the DIFC.
Right now, the firm controls $1.8 Billion in assets under management.
10. Waha Capital – $1.7 Billion
Over the past 12 years, Waha Capital has consistently delivered profits to its investors. In the first quarter of 2022, despite the choppy conditions of the markets, it has already declared a $40 Million profit, a 31% increase year-on-year.
Established in 1997, the fund has accumulated extensive holdings in multiple sectors of the economy, in the public and private markets, and local and international assets. It, most notably, makes investments in the public securities & credit market, healthcare, industrial real estate, infrastructure, energy, financial services, travel, and fintech. Its doctrine is to create consistent incomes for its investors while preserving long-term value.
Its CEO, Ahmed Khalifa Al Mehairi, comes to the table with an extensive wealth of knowledge built over an impressive career. Having worked at the Abu Dhabi Investment Council, Abu Dhabi Investment Ministry, and the Abu Dhabi Investment Authority, among many others.
In May 2022, the fund reported that its total assets under management had grown 8% quarter-on-quarter to $1.7 Billion. The company is not without its fair share of awards and accolades. That same month, it won the “EuroHedge 2021 Award for Best Emerging Markets”.
11. Ithmar capital – $1.2 Billion AUM
Founded in 2005, Ithmar Capital is yet another one of the UAE’s largest investment funds. Like most of the others on this list, it is headquartered in the Dubai International Financial Centre. Over its 17 years of operation, the firm has raised $1.2 Billion in assets under management.
By following a unique strategy combining growth and buyout private equity opportunities with public equities, special situations, and some real estate ventures, the firm has realized an IRR of 19% over its lifetime.
However, its core strategy is to invest in the healthcare and education sectors. Believing that these sectors are pivotal to its goal of driving some positive difference in the Gulf Cooperation Countries, where it boasts extensive coverage, the firm dedicates 75% of its resources to healthcare and education. And on its investments in these sectors, it has earned a lifetime IRR of 45%.
Some of its portfolio companies are the Al Noor hospital group, Belhoul Specialty hospital, and the Abu Dhabi University Holding Company, among many others.
12. Safanad – $1.2 Billion AUM
Safanad capital has one of the most exciting name choices on this list. According to Arabian legend, the Queen of Sheba presented King Sulaiman with a mare made from the four winds named Safanad. This horse, whose name translates to “the pure” was imbued with spirit, strength, speed, and intelligence from the northern, southern, eastern, and western winds, respectively, and is said to be the progenitor of all Arabian horses.
These are the qualities that this fund’s founders had in mind when they started the firm in 2009. Founded with a primary focus on private equity and real estate investments, the fund’s inbuilt nimbleness (borne of spirit, strength, speed, and intelligence) enables them to navigate the wide range of investment opportunities for maximum returns on a case-by-case basis. So, instead of stubbornly sticking to an investment theme above all else, the primary driver for Safanad is delivering long-term value for its investors and other stakeholders.
Economics expert Dr. John Rutledge is the resident Chief Investment Strategist at Safanad. The man, credited with being one of the brains behind US President Reagan’s economic reform plan, and the Bush administration’s policy on taxes and the reconstruction of Iraq, plays a key role in determining Safanad’s investment strategy direction.
With offices in Dubai, New York, and London, Safanad has a team of 40 seasoned finance professionals who processed over 40 transactions across the US and Europe, with a cumulative value of $10 Billion.
13. NBK Capital Partners – $1.1 Billion AUM
NBK Capital Partners is headquartered in Dubai but has satellite offices in Istanbul, Kuwait City, and Manama in Bahrain. Founded in 2005, NBK is a subsidiary of the National Bank of Kuwait. With over $1.1 Billion in assets under management, NBK has made 37 investments for a total of $663 Million and recorded 22 successful exits across markets in the EMEA region; one of the best track records among investment funds in the region.
The firm operates across three cardinal investment strategies – private equity, private credit, and real estate. The firm employs a total of 19 thorough-bred finance professionals who have produced credible, astounding returns for their investors year after year.
As a firm that is fully aware of ESG responsibilities, NBK evaluates potential investments for worker welfare and social responsibility issues. And they don’t stop there; they provide hands-on guidance to their portfolio companies to ensure that they continue to have the most positive impact on their workers and communities.
14. Binghatti holdings – $953 Million AUM
Unlike most of the firms mentioned in this article, Binghatti is a holding company rather than just a private equity fund. Basically, what this means is that they own the companies in which investors’ funds are invested. Binghatti operates in multiple sectors of the UAE economy, especially consumer goods, construction, education, industries, etc.
As a holding company, Binghati has multiple subsidiaries dedicated to handling several aspects of its business. But, perhaps the most well-known of them all is its property development arm – Binghatti Developers. Through that business alone, the firm has completed a whopping 40 projects, with a value of 3.5 Billion AED (〜$953 Million).
Its investment strategy is to focus on markets with high growth opportunities, where it then brings its years of experience in business operation to bear in turning results for consumers and investors alike at impressive speed.
15. Fajr Capital – $700 Million AUM
Fajr Capital is another top-flight private equity firm located in the UAE. Established in 2008, the firm’s client list includes some of the highest-profile sovereign wealth funds in the middle east, from Brunei and Abu Dhabi to other major cities across the Middle East and Asia.
With a preference for high-growth companies, Fajr directly drives positive change in the communities it invests in through its impact investing strategies. By investing in these relatively early-stage businesses in manufacturing, renewable energy, education, and infrastructure, Fajr assumes a direct role in the development of communities in the region; earning returns for its investors, portfolio companies, and the EMEA region as a collective.
Some of its most well-known exits include GEMS Education, the biggest K-12 education provider in the world, and the National Petroleum Service in Dubai, a leading oil services company in the region.
In recognition of its efforts, in 2017, the EMEA Finance Achievement Awards bestowed the firm with the award for the Best Private Equity House in the Middle East 2017. Across its offices and portfolio companies in Brunei, Indonesia, Saudi Arabia, Egypt, UAE, Turkey, Singapore, and a few other major EMEA countries, Fajr employs over 15,000 professionals.
16. Samena Capital – $390 Million AUM
Named after the SAMENA (the subcontinent, Asia, Middle East, and North Africa) markets where its primary focus is, Samena Capital is another of the UAE’s biggest private equity shops, with a focus on private equity investments, direct investments, and credit, following a strategy of a combination of growth capital deployments and buy-outs.
Considering that the SAMENA region is one of the world’s most promising economic regions, there are a lot of returns to be made in the area. According to IMF data, the combined GDP of the countries in this region is expected to rise from $11.3 Trillion in 2021 to an estimated $14.8 Trillion in only the next 5 years.
Founded in 2008, Samena Capital has raised over $1.5 Billion in its lifetime, of which $950 Million has been returned to its investors following successful exits. As it stands, they have over $390 Million in assets under management.
Although its headquarters are in the Dubai International Financial Centre, Samena Capital runs syndicated operations in three other major cities, one each in Europe, Asia, and Africa – London, Mumbai, and Mauritius.
It employs a total of 15 professionals who have successfully coordinated 46 investments, out of which they have had 26 exits. As of now, they have about 13 companies in their portfolio.
17. Cedarbridge partners – $140 Million AUM
Of all the investment funds on this list, Cedarbridge is probably the one with the most reach. Operating in the growth-rich middle markets as is characteristic of private equity funds, this middle-market private equity firm operates in the MENA area and specific EU countries; even extending its tentacles as far as London, from its operational and corporate headquarters in the financial district of the Emirate of Dubai.
Also specializing in healthcare, education, and consumer goods, Cedarbridge handles $140 Million in assets under management. Founded in 2011, Cedarbridges’ modestly sized investment team has a cumulative 50+ years of experience in the industry and has been able to complete more than 16 successful acquisitions.
Some of its most well-known exits are Advanced Laboratory Services and the Cairo for Investment and Real Estate Development (CIRA) fund. Some companies still in its portfolio are al-Shams labs and the Eton Institute, among many others.
18. Etjar investments
Etjar is another investment fund that’s primarily focused on the real estate sector of the market in the emirate of Dubai. Its services include sales, leasing, and management of mainly residential properties.
19. MBI
Mubarak and Brothers Investments, popularly known as MBI, is an investment firm working out of Abu Dhabi. Founded in 2003 and led by H.E. Saeed Abdul Jaleel Al Faheem, the fund invests across the real estate, asset management, retail, and project management sectors of the economy.
Specifically, they have come to be most known for their real estate business; and one of their most known portfolio companies is the Deerfields mall at the heart of Abu Dhabi. By focusing on quality, innovation, and sustainability as its cardinal values, the company has achieved tremendous growth over the years while also aligning with the government’s development aspirations – the Abu Dhabi Economic Vision 2020.
20. ATI
Established in 2006, Al Tamimi Investments is another heavyweight player in the Dubai financial space. With 3,000 employees, the firm controls massive operations across 6 industries in the economy – manufacturing, retail, education, hospitality, healthcare, and corporate support services.
As a policy, ATI evaluates every investment opportunity on its own merits; rather than be restricted to any particular investment class. So, while they may have a special focus on start-ups, they do not turn down the opportunity to invest in companies at any stage of their lifecycle, provided the numbers are right.
