Abu Dhabi Global Market (ADGM), the main financial center of Abu Dhabi, has experienced a significant surge in its assets under management (AuM) during the first half of the year. According to recent data, ADGM’s AuM increased by a record-breaking 35%, highlighting its appeal to both global and regional players in the financial industry.
The financial hub has attracted a total of 102 asset managers, consisting of investment firms and hedge funds, who are responsible for managing a total of 128 funds. This growing interest in ADGM has led to the establishment of prominent global firms such as Brevan Howard, Ardian, Goldman Sachs, Tikehau Capital, Blackstone, SBI Capital, Asian Infrastructure Investment Bank (AIIB), Apollo, Fifth Wall, Fidera, and Vibrant Capital.
The AIIB, a multilateral development bank with assets worth Dh367 billion, has also set up its first overseas office in ADGM earlier this year. The bank’s objective is to finance sustainable infrastructure projects, making its presence in Abu Dhabi even more significant.
In addition to these achievements, ADGM has granted in-principle approval for 46 international and regional companies to operate within the financial hub, marking a remarkable 119% increase compared to the previous year. These companies are expected to commence full operations in the near future.
Ahmed Jasim Al Zaabi, a member of Abu Dhabi’s Executive Council and chairman of the Abu Dhabi Department of Economic Development and ADGM, expressed his enthusiasm for the growth witnessed in ADGM, emphasizing its role in supporting the development and diversification of the Falcon Economy. He highlighted that ADGM is currently the fastest-growing international financial center in the region.
ADGM has not only attracted global players but has also established itself as a preferred destination for local and regional firms. Companies such as ADQ, G42, Chimera, Gulf Capital, OneIM, and Investcorp have chosen to operate within the financial hub.
The success of ADGM can be attributed to its ability to create an enabling environment for businesses. The center’s Registration Authority published a consultation paper on the legislative framework for Distributed Ledger Technology Foundations during the first half of the year. Additionally, ADGM launched its inaugural Money Laundering and Terrorist Financing Risk Assessment of ADGM Legal Persons and Arrangements Report in May 2023. The hub’s Financial Services Regulatory Authority has also introduced a comprehensive sustainable finance regulatory framework that includes environmental, social, and governance disclosure requirements.
During the first half of the year, ADGM expanded its geographic area, bringing Al Reem Island under its jurisdiction in addition to the existing Al Maryah Island. This expansion has positioned ADGM as one of the largest financial districts globally, covering an area of 14.38 million square meters.
The impressive growth and achievements of ADGM in the first half of 2023 set a positive tone for the rest of the year. Its success contributes to positioning Abu Dhabi as a financial powerhouse and a prominent player in the global economy.
In related news, Dubai Financial Market has reported a half-year profit of Dh112.2 million, marking a significant increase of 77%. This further underscores the overall strength and growth of the financial sector in the United Arab Emirates.