The UAE is fast emerging as the epicentre of global private capital. Anchored by Abu Dhabi’s sovereign wealth giants and powered by Dubai’s dynamic financial ecosystem, the country is becoming a launchpad for strategic, long-term capital that backs bold ideas, frontier technologies, and mission-driven innovation.
From climate tech to AI, digital assets to sustainable infrastructure, the UAE is curating a future shaped by transformative investment.
As Antoine Colson, CEO of IPEM, put it: "Capital doesn’t just seek returns, it shapes the future. It backs bold ideas, deep technologies and long-horizon missions. It empowers nations to diversify, founders to dream bigger, and innovation to scale across borders. From AI to climate tech, life sciences to space, this is the capital that dares to bet on the next frontier. And the UAE is becoming its global home."
On 13 May 2025, IPEM, in partnership with First Abu Dhabi Bank, hosted its inaugural GCC event in Abu Dhabi, a city now widely known as the "Capital of Capital". With around $1.7 trillion in assets under management via sovereign wealth funds and institutional investment firms, Abu Dhabi is leading the global private capital conversation.
The event convened international fund managers, representatives from GCC sovereign wealth funds and key private market stakeholders to explore the most significant trends shaping private capital in 2025. Here we unpack the key themes from the conference.
1. Abu Dhabi: The Capital of Capital
Abu Dhabi and the broader Middle East are home to some of the world’s largest Limited Partners (LPs). The Emirate continues to pioneer developments in private markets, with several new global private equity funds targeting the region. These are projected to raise $4.5 to $5 billion, with an estimated $9 to $10 billion in transactions over the next 3 to 4 years. In addition, there has been a flurry of global asset managers and hedge funds establishing bases in ADGM.
2. Geopolitical and Economic Risks
Rising geopolitical instability, inflation and the effects of deglobalisation are complicating cross-border investments and capital deployment. Several panellists noted that this volatility is presenting significant challenges for deal-making and long-term strategic planning.
Demographics, technological advancement, and improved regulatory environments are driving growth, especially in India, China, Japan, and Southeast Asia.
Artificial Intelligence (AI) remains a trending topic, though its integration into investment selection is still evolving. Asset managers and investors are beginning to use AI platforms to support underwriting and risk management by providing objective deal analysis and tracking historical performance.
There is growing acceptance of GP-led transactions, which provide LPs with liquidity while maintaining exposure to high-performing assets. These deals allow for extended holds on successful ventures and broaden diversification for LPs.
US direct lending market now stands at $1.5 trillion, with asset-backed financing expanding into sectors such as consumer lending, mortgages, and aviation. Despite perceptions of risk, many high-grade companies seek the flexibility and certainty private debt offers. Thorough due diligence is crucial as market share grows.
Private credit markets in the GCC have matured considerably in recent years. There is an increasing focus on non-sponsored, direct lending to meet capital demands from national strategies like Saudi Vision 2030, especially given the high number of banks (53 in the UAE) relative to the financing needs.
Gulf sovereign wealth funds are playing increasingly prominent roles in transactions, acting as both co-investors and competitors. Their involvement is guided by capital preservation principles aligned with regional investment strategies.
Financial centres like the DIFC and ADGM have adopted English law frameworks, enhancing legal clarity and predictability for investors and lenders. These legal features enable the development of more sophisticated lending structures and building investor confidence through greater enforceability.
Higher interest rates have significantly impacted real estate investment, with transaction volumes down by 70%. Liquidity is crucial for asset holders, particularly in the US office and multifamily sectors, which are facing high delinquency rates.
Large multi-asset managers are adopting both systematic and fundamental strategies in private and public digital assets, including futures and equities. Smaller funds are targeting early-stage fintech and digital asset convergence, particularly regulated infrastructure.
The UAE is emerging as a global hub for digital assets, underpinned by progressive regulation and a commitment to innovation.
Despite regulatory pushback in the US, ESG remains a priority globally. Companies continue to invest in sustainability initiatives, and China’s diversification into renewables highlights ongoing momentum.