Abu Dhabi Global Market (ADGM), the prominent international financial center in the capital of the UAE, has recently revealed that 14 major financial institutions, with a combined total assets under management (AUM) of $452 billionA, have committed to establishing new operations within ADGM. This announcement comes as Abu Dhabi’s “Falcon Economy” enters its second year and coincides with the second edition of Abu Dhabi Finance Week (ADFW). These developments serve as a reaffirmation of the emirate’s growing appeal to the global finance industry and highlight ADGM’s strategic role and contributions in fostering the remarkable growth of the “capital of capital” and its emergence as a global financial powerhouse.
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In a clear demonstration of trust in the significant influence of the financial center within the global and regional financial arenas, JP Morgan, the largest bank in the world, has reaffirmed its dedication to the capital by obtaining an upgraded license to operate its payment and banking operations.
Jamie Dimon, chairman and chief executive officer, JP Morgan, said: “The determination of the emirate that is forging ahead with its reform agendas is extremely impressive, be it their economic, financial, and social agendas. These are not easy changes but there is clear progress on all fronts towards the goal to create a safe and secure society and a dynamic Falcon Economy. We have continued to add to the team this year and have submitted an application to upgrade our operating licence to a full category one banking entity, signalling our intent and commitment to the size of the opportunity here.”
ADGM license
Furthermore, Rothschild & Co, the largest independent financial services group globally, has reinforced its already strong presence in the Emirates by obtaining a newly granted ADGM license. This expansion aligns with the firm’s broader growth strategy and reflects its ongoing commitment to the region. Additionally, the World Bank has renewed its longstanding presence in the financial center, further solidifying its dedication to operating within ADGM.
Reaffirming commitment
Saeed Al Awar, partner and head of Middle East, Rothschild & Co, said: “We are delighted to have received our licensing approvals from ADGM. This is an expansion of our existing presence in the UAE where we have been operating for nearly two decades which reaffirms our commitment to our clients in Abu Dhabi and the UAE and is part of our broader expansion strategy and commitment to the region.”
Holistic financial hub
ADGM’s appeal as a comprehensive financial hub, distinguished by its unique adoption of the direct application of English common law, has attracted renowned global companies to establish their presence in the capital. Among them are BNY Mellon’s venture Alpheya, GQG Partners, Joy Capital, Apeiron Group Investments, The Children’s Investment Fund (TCI), Copper, Vibrant Capital, Centricus, and Eiffel Investment. These firms join a growing list of prestigious organizations that have chosen the Abu Dhabi Global Market as their preferred jurisdiction. Additionally, the financial center has witnessed six additional announcements from emerging growth firms, bringing the total number of new entrants to 23.
Commenting on the “Falcon Economy’s” impressive flight, Ray Dalio, founder, co-chairman and co-chief investment officer, Bridgewater Associates said: “We’re talking today about how the world order is changing, and how Abu Dhabi and the whole GCC region are becoming a renaissance state.”
Alan Howard, co-founder, Brevan Howard Asset Management, said: “Abu Dhabi’s robust regulation, rule of law and favourable taxation, represent a lure for financial firms moving to the capital of the United Arab Emirates. Out of this place, you can see the Bank of Japan at the beginning of the day and at the end of the day, you can see the Fed. As soon as you get more top hedge funds coming here, that can lead to the banks having to send their best people.”
Global opportunity
His Excellency Ahmed Jasim Al Zaabi, member of Abu Dhabi’s Executive Council & chairman of the Abu Dhabi Department of Economic Development (ADDED) and ADGM, said: “What we are witnessing in Abu Dhabi today, with major global players choosing the capital city to base their business operations is proof of a unique global opportunity being seized by future thinking institutions. We warmly welcome their presence and support in the growth and diversification of the ‘Falcon Economy’. This is the most successful week in ADGM’s history.”
Flurry of positive announcements
The market announcements were unveiled as part of the second edition of ADFW, which was themed “Investing in the Transition Era.” This edition attracted more than 17,000 participants from over 100 countries. The multitude of positive announcements during ADFW further highlights ADGM’s significant role as a key contributor to Abu Dhabi’s economic diversification efforts.
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