Global Wealth Managers Summit in Dubai, Abu Dhabi emerges as an alternate hub in UAE.

Abu Dhabi is rising out of Dubai’s shadow as it draws a fair amount of the wealth of asset managers and billionaires, thereby solidifying the United Arab Emirates’ position as a substitute for major international financial centers.

Despite not having large oil reserves, Dubai has become the leading financial hub in the region over the last 20 years thanks to its attractive tax rates, use of English common law, and exposure to the fast-growing economy of the area.

Dubai is ranked 16th globally in the most recent Global Financial Centers Index, while Abu Dhabi is ranked 35th.

The Middle East and Africa are ranked 1 and 2, respectively.

Abu Dhabi, which owns 90% of the UAE’s oil reserves, has, however, stepped up efforts to diversify its economy in recent years, relying on its enormous wealth and sovereign funds, which collectively control about $2 trillion, to spur growth outside of the oil industry.

The international financial community has taken notice of the rise of businesses in many new industries and the commercial opportunities brought forth by Abu Dhabi’s investments.

In the past year, “it’s completely changed, there’s been an influx of money managers, hedge funds, alternatives, etc. coming to conferences to raise funds here,” stated Ryan Lemand, co-founder and CEO of Neovision Wealth Management, an investment consulting and fund Management Company based in Abu Dhabi.

To get an advantage over those who come from London, New York, or Hong Kong to generate new business, some have already opened offices in Dubai or, more recently, Abu Dhabi.

Lemand was speaking ahead of the Alternative Investment Management (AIM) Summit in Dubai this week, which attracted hundreds of organizations from around the world, including JPMorgan Asset Management and Brevan Howard.

Dubai is still far ahead, even though the data for the two centers are not comparable.

At the AIM conference, the head of wealth and asset management for the Dubai International Financial Center stated that more than 420 wealth and asset management companies are already working in the city.

Data from the end of June indicated that 112 fund businesses were registered in Abu Dhabi, although no latest figures were available.