ADGM, Abu Dhabi's international financial hub, has reported yet another quarter of remarkable growth, showcasing exceptional results for the third quarter of 2024 across critical indicators. These outcomes highlight ADGM's significant role in Abu Dhabi's strategic goal to diversify its economy and establish itself as a leading global financial, investment, and innovation destination. ADGM's performance aligns with Abu Dhabi's economic expansion, which saw a 6.6 per cent increase in non-oil GDP in Q2 2024.
Ahmed Jasim Al Zaabi, ADGM's chairman, stated: 'Our Q3 record-breaking achievements reflect the appeal of ADGM's top-tier ecosystem, which combines a stable regulatory environment, strategic location, and business-friendly conditions. The sustained influx of businesses and investors into ADGM underscores Abu Dhabi's competitive edge in the global financial sector and the growth of the Falcon Economy. As we advance on our 'Path to Forward,' we aim to build on this momentum to drive further growth and innovation that benefits not only Abu Dhabi and the UAE but the broader financial community.'
ADGM experienced a substantial 215 per cent rise in total assets under management (AUM) in Q3 2024 compared to Q3 2023. This growth is mirrored in the increase of fund and asset managers, which reached 128, overseeing 156 funds by the end of Q3 2024. In Q3 2024, ADGM issued 33 per cent more new business licenses compared to the previous year, totaling 759 licenses for financial, non-financial, and retail firms. The number of operational entities within ADGM's jurisdiction surged to 2,251, a 31 per cent year-on-year increase, reflecting robust demand from various sectors such as asset management, FinTech, and professional services.
The workforce within ADGM's jurisdiction has grown steadily, with 4,433 new workers joining since Q3 2023, marking a 35 per cent increase. ADGM's regulatory framework, based on English Common Law, has introduced new regulatory enhancements to support the evolving needs of its expanding ecosystem, including a new whistleblowing framework. On the digital assets front, the Financial Services Regulatory Authority (FSRA) of ADGM released a consultation paper to enhance its regulatory framework for the issuance of Fiat-Referenced Tokens (FRTs).
Following the expansion of its jurisdiction to Al Reem Island, ADGM initiated a transition period for businesses moving to ADGM licenses under its robust regulations. An incentive program was introduced in March to facilitate a smooth transition by exempting non-financial and retail sector businesses on Al Reem Island from paying any fees for an ADGM commercial license until 31st October 2024. This deadline has now been extended to 31st December 2024. Major revisions to the licensing fee schedule were announced in Q3, with significant fee reductions of 50 per cent or more for non-financial and retail licenses from January 1, 2025. Additionally, ADGM signed an MoU with the Department of Municipalities and Transport (DMT) to streamline real estate services within its expanded jurisdiction.
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