State Street Corporation has opened its first Abu Dhabi office, which will be located in the Abu Dhabi Global Market (ADGM), the country’s international financial centre.
This is the firm’s second office in the United Arab Emirates, building on its 26-year presence in Dubai.
According to State Street, the firm’s new office will strengthen its current service offering for its Middle East clients in areas including global custody, accounting, risk and performance analytics, and securities lending, as well as indexed, overlay, multi-asset and active investment management.
The firm’s presence in the Middle East will be led by Oliver Berger, senior executive officer for State Street Bank and Trust, and Emmanuel Laurina, senior executive officer for State Street Global Advisors.
State Street has also unveiled a research paper that draws on survey responses from 306 institutional investors based in the Middle East and North Africa (MENA), who were asked about their outlook for growth and future economic trends in the region.
According to the research, more than three quarters (78 percent) of those surveyed are optimistic about their own growth prospects in the Middle East.
Some 75 percent foresee growing inflows into Gulf Cooperation Council (GCC) domiciled funds over the next five years.
In a sign of growing sophistication and increasing risk appetite, 91 percent plan to diversify their portfolios to historically complex asset classes including emerging market equities, hedge funds, and infrastructure.
Furthermore, almost three quarters (73 percent) believe there will be growth in demand for funds which are led by environmental, social and governance considerations.
Liz Nolan, CEO of State Street, Europe, the Middle East and Africa (EMEA) and chairperson for State Street global advisors, commented: “To find this level of concurrence and optimism among major institutions is unusual.”
She added: “The results show there is an almost universally positive outlook and prediction of growth in the Middle East and North Africa. Having had a presence in the region for more than a quarter of a century, we have a unique perspective on the institutional investor community, and their positive outlook mirrors our own.”
Richard Teng, CEO of the Financial Services Regulatory Authority for the Abu Dhabi Global Market (ADGM), said: “We extend our heartiest congratulations to State Street Corporation and welcome them to the ADGM family.”
“State Street joins a rapidly growing list of global financial institutions that have chosen to anchor their operations in ADGM to better serve a fast-growing region with dynamic business and investment needs.”
He added: “The strong endorsement by State Street demonstrates its confidence in the exciting prospects and opportunities offered by Abu Dhabi and the region. Their branch office attests to ADGM’s strengths as a fast-growing and award-winning international financial centre. We look forward to supporting State Street in its global growth aspirations.”
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