Morgan Stanley Services Group Inc. plans to establish a new U.S. operations hub in Dallas, a $684 million investment expected to create more than 3,800 jobs, according to Gov. Greg Abbott’s office.
The state has offered the company a $43,849,500 Texas Enterprise Fund grant and a $40,000 Veteran Created Job Bonus. Texas Enterprise Fund payments are tied to the company meeting contractual job and wage targets.
“Texas is the financial capital of America,” Abbott said in the announcement, adding that the state’s talent pool and growing financial services industry continue to attract major companies.
The announcement comes as Texas continues to attract corporate relocations and expansions, bolstering its position as a major financial center. Since 2018, 725 companies have moved to Texas, including Hewlett-Packard and Charles Schwab.
In a recent meeting in Houston, U.S. Treasury Secretary Scott Bessent contrasted Texas’ business environment with California’s, arguing that regulatory and tax policies in California have made it less attractive to businesses.
Morgan Stanley’s expansion was welcomed by state and local officials, who cited the project’s potential to increase employment and strengthen Dallas’ financial services sector.
Company executive Eric Grossman said the new hub will allow Morgan Stanley to serve clients and recruit talent in the region.
State Sen. Royce West (D–Dallas) said the company’s planned partnerships with area universities will help prepare students for careers in financial services. State Rep. Morgan Meyer (R–Dallas) also welcomed the investment, pointing to the thousands of new jobs that will be created.
“Dallas’s selection as the home of Morgan Stanley’s new operations hub is a landmark investment in our city and another defining moment in the rise of Y’all Street,” said Dallas Mayor Eric L. Johnson.
Dallas’ growing financial sector has earned it the nickname “Y’all Street,” reflecting the city’s emergence as a major financial center outside of New York. The New York Stock Exchange opened a regional headquarters in the city and the Texas Stock Exchange recently launched there.
The region has strived to attract major financial institutions in recent years, including Charles Schwab, which moved its headquarters from California to Westlake in 2019, and Goldman Sachs, which is developing a new Dallas campus expected to accommodate thousands of employees.
The Morgan Stanley expansion will receive taxpayer funding through the Texas Enterprise Fund, a performance-based state incentive program administered by the Texas Economic Development and Tourism Office. The program supports business relocation and expansion projects that compete with out-of-state locations and are expected to create new jobs and bring significant capital investment to Texas.
The announcement comes as Texas attracts major corporate investments, including a $2.3 billion pharmaceutical manufacturing campus planned by Bristol Myers Squibb in Houston and a $200 million advanced manufacturing facility announced by Industrial Electric Mfg. in San Antonio.
