At the end of June 2024, the Abu Dhabi Global Market (ADGM), the UAE’s capital’s international financial centre (IFC), issued a total of 1,271 new licenses, marking a 20.5 per cent increase from the previous year, according to recent data. The asset management sector within ADGM is flourishing, with a significant rise in assets under management (AUM), global asset managers, firms, and funds establishing a presence. During the first half of 2024, AUM surged by 226 per cent compared to the same period in the previous year. By June 2024, ADGM hosted 112 fund and asset managers overseeing 141 funds.
While asset management remains a key driver of ADGM’s growth, other financial services sectors including banking, payment services, wealth management, and insurance have also expanded their presence by obtaining either a Financial Services Permission (FSP) or an Intermediary Permit Application (IPA). Notable FSP recipients include Barrenjoey, Deutsche Bank AG, Fidelis OPCO, Laser Digital, and Paxos Issuance MENA. Prominent IPAs granted include Oyster Reinsurance Brokers and SMBC Bank International, among others.
As the fastest-growing financial centre in the region and the only one applying English Common Law directly, ADGM’s continuous success and strategic efforts significantly contribute to the expansion of Abu Dhabi’s financial sector. This growth supports Abu Dhabi’s non-oil economy, which expanded by 9.7 per cent in Q1 2024. ADGM is increasingly attracting global asset management firms, talent, and investments, solidifying Abu Dhabi’s status as the ‘Capital of Capital’.
Ahmed Jasim Al Zaabi, Chairman of ADGM, highlighted that ADGM’s impressive growth in the first half of 2024 enhances Abu Dhabi’s standing as a premier hub for global, regional, and local corporations and financial institutions. ADGM’s strategies are in line with Abu Dhabi’s visionary leadership, aiming to position the UAE’s capital as a leading international financial centre. Through fostering a thriving ecosystem and pursuing innovation, excellence, and strategic development, ADGM has achieved significant milestones in its Growth Strategy 2023-2027, accelerating the growth of Abu Dhabi’s financial industry.
ADGM’s strong performance in H1 2024 is also attributed to a substantial increase in operational entities, reaching 2,088, including 231 financial services entities, a 31 per cent rise from H1 2023. Additionally, the number of Financial Services Permissions (FSP) granted in the first half of 2024 reached 42, a 90 per cent increase from June 2023.
In May 2024, ADGM hosted the second edition of the UAE-France Investors Meetup, attended by 24 French asset management firms with USD 1.6 Trillion AUM, under the leadership of His Excellency Bruno Le Maire. This event provided a unique platform for strategic alliances and mutual growth, reinforcing Abu Dhabi’s global financial hub status and the strong Franco-Emirati partnership.
To enhance its international presence, ADGM conducted roadshows in the first half of 2024 across the USA, Europe, Hong Kong, and the Chinese subcontinent. Additionally, ADGM has engaged in strategic blockchain innovation partnerships, including with the Solana Foundation and Hacken, to advance DLT solutions and blockchain security and compliance.
The workforce on ADGM’s Al Maryah Island has expanded by over 2,500 individuals since June 2023, with 70.81 per cent of companies planning to expand their workforce in 2024. Residential growth on Al Reem Island has also surged, with 1,266 new units added since April 2023, and occupancy rates rising from 84.78 per cent to 92.82 per cent by June 2024.
ADGM has supported existing businesses on Al Reem Island through regulatory amendments and community engagement initiatives, including an information centre at Shams Boutik Mall and community events. ADGM also introduced an incentive for non-financial and retail businesses to obtain an ADGM commercial licence without fees if applied before October 31, 2024.
