Abu Dhabi Global Market (ADGM) has experienced significant growth in the first half of 2024, issuing a total of 1,271 new licences, showcasing a 20.5% increase compared to the previous year. The asset management sector within ADGM has seen a notable surge in assets under management (AUM), with a growth of 226% in the first six months of 2024. The number of fund and asset managers operating in ADGM has reached 112, managing 141 funds. Additionally, various financial services entities across banking, payment services, wealth management, and insurance sectors have joined the ADGM ecosystem, receiving either an FSP or an IPA.
ADGM’s strategic initiatives and consistent achievements have positioned it as the fastest-growing financial centre in the region, with direct application of English Common Law. The growth of ADGM has contributed significantly to Abu Dhabi’s non-oil economy, which grew by 9.7% in Q1 2024. ADGM is attracting global asset management firms, talent, and investments, cementing Abu Dhabi’s status as the ‘Capital of Capital’. The Chairman of ADGM, Ahmed Jasim Al Zaabi, highlighted the organization’s role in fostering Abu Dhabi’s position as a premiere hub for global corporations and financial institutions.
One of the key factors driving ADGM’s growth is the increase in operational entities, which have risen to 2,088, including 231 financial services entities. This represents a 31% increase compared to the previous year. In addition, the number of Financial Services Permissions (FSP) granted in the first six months of 2024 has grown by over 90%. ADGM’s efforts to expand its international positioning have involved conducting roadshows in various countries and regions, including the USA, Europe, Hong Kong, and the Chinese subcontinent.
ADGM has been at the forefront of blockchain innovation, signing strategic partnerships with organizations such as the Solana Foundation and Hacken to enhance DLT solutions and advance blockchain innovation. The workforce within ADGM’s Al Maryah Island has increased by more than 2,500 individuals compared to the previous year. Companies in ADGM are anticipating further expansion in their workforce in 2024, with a significant number planning moderate to significant increases. Al Reem Island has seen a surge in residential units, with occupancy rates rising steadily.
In addition to supporting existing businesses on Al Reem Island, ADGM has launched initiatives to engage with the business community, provide essential updates, and foster collaboration among stakeholders. An incentive initiative has been introduced for existing non-financial and retail businesses on Al Reem Island, exempting them from paying any fees for obtaining an ADGM commercial license. ADGM’s exceptional growth and initiatives have positioned it as an ideal location to live, work, and conduct business, reinforcing its status as a global financial hub.
