How ADGM’s record-breaking performance is redefining the global financial landscape
In Abu Dhabi, an economic transformation is quietly unfolding. ADGM, the international financial center of the UAE capital, has emerged as one of the world’s fastest-growing financial ecosystems.
With a staggering 245 percent year-on-year growth in assets under management (AUM) in 2024 and an unprecedented expansion of its operational entities, ADGM has firmly established itself as a regional financial hub that is rapidly gaining global prominence.
This remarkable growth is particularly evident in the wealth management sector, where ADGM has become a key hub for family offices, offering a dynamic environment that attracts high-net-worth families and wealth management entities. With its robust legal framework, tax advantages, and tailored services spanning wealth management, succession planning, and philanthropy, ADGM is now as a global leader in family office operations.
The establishment of billionaire-led family offices, including those of British businessman Asif Aziz, prominent philanthropist and financial strategist Wafic Said, and Singaporean entrepreneur and real estate leader Kishin RK, underscores the center’s growing appeal as a global wealth management destination.
ADGM’s rapid ascent was further cemented during the third edition of ADFW last December, which witnessed major announcements from global financial institutions representing almost $635 billion in assets under management. This impressive figure, up from $450 billion just a year earlier, follows strategic moves by some of the world’s largest asset managers, including BlackRock, PGIM, and Nuveen, all of which have established operations in ADGM.
As international investors and financial institutions increasingly pivot towards emerging markets and innovative regulatory frameworks, ADGM’s performance over the past year offers a compelling case study in how strategic vision, regulatory innovation, and ecosystem development can transform a financial center into what is now being recognized in the global financial sector as the “Capital of Capital.”
What has fuelled this unprecedented rise and how does ADGM plan to sustain this momentum
The statistics paint a picture of extraordinary momentum. By the end of 2024, ADGM was home to 134 asset and fund managers overseeing 166 funds. The center experienced a 32 percent annual growth in operational entities, reaching a total of 2,381 registered businesses. Perhaps most impressively, the workforce within ADGM grew by 39 percent throughout 2024, signalling robust job creation and talent attraction.
“It is not just the AUM growth that’s quite remarkable, but also the 32 percent annual growth in the number of operational entities that has become a direct reflection of rising investor and business confidence in ADGM,” explains Arvind Ramamurthy, chief of market development at ADGM. “Furthermore, it also highlights the appeal of ADGM’s regulatory clarity, global connectivity, and business-friendly infrastructure.”
The financial sub-sector within ADGM’s ecosystem particularly flourished, with 275 financial institutions already registered within its jurisdiction at the start of 2025, 79 of which were licensed during 2024 alone.
These aren’t just regional players — they include global giants such as Polen Capital, General Atlantic, Lone Star Funds, Investindustrial, Marshall Wace, AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, Morgan Stanley — in addition to the previously mentioned BlackRock, PGIM, and Nuveen. Additionally, ADGM’s expansion to Al Reem Island saw 1,100 new entities now operating under its jurisdiction.
The gravitational pull: Why global financial leaders are choosing Abu Dhabi
What’s driving this remarkable influx of global financial institutions to ADGM? According to Ramamurthy, several key factors explain the center’s gravitational pull. “Being able to attract industry leaders like BlackRock, PGIM, Morgan Stanley, and AXA IM is causing the gravitation of other players following the industry leaders,” he notes.
This “bandwagon effect’ has accelerated as more financial heavyweights announce their commitment to the center. “The expansion is further bolstered by announcements of the establishment of global banks and growth in ADGM from heavyweights such as JPM, Morgan Stanley, BNP, and Citi, among others, which solidify the opportunity Abu Dhabi offers,” Ramamurthy adds.
Beyond the presence of financial giants, Abu Dhabi’s reputation as “the safest city” with strong liability protections and economic stability is making it easy for decision-makers of global funds to consider setting up business in the UAE capital, and in ADGM in particular. This sense of security and stability cannot be understated in a world marked by geopolitical uncertainty and economic volatility.
A robust and progressive regulatory framework
At the heart of ADGM’s appeal lies a robust and progressive regulatory framework. Unlike many other financial centers that operate with rigid, prescriptive rules, ADGM has adopted a principles-based approach aligned with global best practices. This offers predictability and trust — critical factors for global investors, asset managers, and fintech players.
The Financial Services Regulatory Authority (FSRA) of ADGM has been particularly innovative in developing frameworks that address emerging areas of finance. Recently, it issued a comprehensive regulatory framework for fiat-referenced tokens (FRTs), expanded its digital asset ecosystem, and introduced guidance on staking, lending, and borrowing in decentralized finance (DeFi).
This regulatory innovation extends to sustainable finance as well. In 2024, the FSRA published guidance on ESG greenwashing and granted a new Green Fund Designation to Vortex Energy IV, a $1.8 billion AUM energy transition investment manager based in ADGM. Such initiatives demonstrate ADGM’s commitment to balancing innovation with investor protection — a delicate balance that many financial centers struggle to achieve.
Beyond traditional finance: ADGM’s sectoral diversification
What distinguishes ADGM from many other financial centers is its strategic diversification beyond traditional banking and asset management. As Ramamurthy observes: “ADGM is no longer just a financial center — it’s a hub for fintech innovation, sustainable finance, private equity, family offices, and digital assets. This diversity creates resilience and attracts a broader range of global and regional players.”
The sustainable finance sector has been particularly notable in ADGM’s expansion. The center now leads the UAE Sustainable Finance Working Group and houses ALTÉRRA, a $30 billion private investment vehicle dedicated to climate action. The Global Climate Finance Center (GCFC) is also headquartered in ADGM, further cementing Abu Dhabi’s position as a leader in green finance.
Similarly, ADGM has positioned itself at the cutting edge of financial technology. Its fintech ecosystem continues to attract top-tier global players such as eToro and M2, while regulatory innovations around decentralized autonomous organizations (DAOs), tokenized assets, and digital currencies are placing ADGM at the forefront of digital transformation in finance.
The collaborative ecosystem: Startups, corporates, and government all working hand in hand
ADGM’s success isn’t merely about attracting established financial institutions; it’s equally focused on fostering innovation and entrepreneurship through strategic collaboration between startups, corporates, and government entities. “Collaboration lies at the heart of ADGM’s ecosystem strategy,” Ramamurthy emphasizes. “In 2025, ADGM is focused on scaling up initiatives that bring together startups, corporations, and government bodies to co-create and commercialize innovation.”
Central to this collaborative approach is Hub71, Abu Dhabi’s global tech ecosystem based in ADGM. Backed by sovereign wealth funds and major corporations, Hub71 supports startups through funding, mentorship, and market access, serving as a bridge between innovators and institutional players.
The RegLab, ADGM’s regulatory sandbox, continues to function as a “living lab” for fintech experimentation, allowing startups to pilot solutions in a controlled environment with regulatory support. This close engagement helps shape market-relevant regulations while reducing the risks associated with innovation.
For small and medium-sized enterprises, ADGM subsidiary Numou, established in 2023, has expanded its network of lending partners and strengthened its position as a digital lending marketplace. The platform now features collaborations with institutions like the Khalifa Fund for Enterprise Development and private credit providers such as Credible-X, Klubworks, and NymCard Payment Technologies.
Global outreach: Extending ADGM’s international presence
While building its domestic ecosystem, ADGM has simultaneously pursued an aggressive international outreach strategy. In 2024, the center hosted roadshows across major financial capitals including New York, Washington, Paris, Switzerland, Hong Kong, Shanghai, Singapore, and London.
“During these engagements, ADGM highlighted Abu Dhabi’s dynamic financial ecosystem to institutional investors, asset managers, and global financial leaders, bringing the total number of bilateral discussions to more than 300 across key international markets,” Ramamurthy notes.
This global outreach has paid dividends, attracting investment and institutional presence to the center, and continues to do so as conversations have extended beyond the roadshow which could eventually lead to more business for ADGM, and Abu Dhabi in general. As such, additional roadshows are being planned for 2025 as part of ADGM’s strategy to continue expanding its global influence, further contributing to its projected growth in the coming year.
Seeing opportunities behind challenges
With its remarkable success, ADGM now faces the challenge of maintaining its growth trajectory and fulfilling its vision of becoming a truly global financial center.
ADGM’s growth will naturally require attracting and retaining talent to fuel its continued growth. Sustaining such growth requires a deep talent pool with specialized skills in finance, technology, and regulatory compliance.
Though competing with established financial centers like London, New York, and Singapore, which have extensive networks of universities, professional training programs, and established expatriate communities, Abu Dhabi has many attractive aspects that make it a haven for world-class talent, including tax-free salaries, top-notch education and healthcare facilities, first-rate infrastructure in addition to the capital being rated as the safest city in the world for nine consecutive years since 2017.
ADGM will also need to ensure regulatory agility, along with stability and investor protection. As ADGM ventures into cutting-edge areas like digital assets, decentralized finance, and climate finance, it will need to continuously innovate its regulatory framework without introducing uncertainty or risk.
This balancing act becomes increasingly complex as the center grows and diversifies. “ADGM views competition from other regional financial hubs as an exciting opportunity for growth,” Ramamurthy says.
“As these financial centers vie for the same pool of global financial institutions, talent and capital, ADGM has a unique position as the ‘Capital of Capital’. By continuing to focus on regulatory innovation, ecosystem development, and strategic specialization, the IFC can strengthen its position and attract more global attention, solidifying its role as a leading financial hub in the MEASA region,” he adds.
In addition, growth is closely connected to the broader economic dynamics shaping the Gulf region. Factors like oil price fluctuations and changing global investment trends offer opportunities to influence the center’s development in a positive direction. For ADGM’s leadership, these factors present opportunities to showcase the financial center’s strengths and capabilities in order to continue its upward trajectory.
“As a dynamic financial hub built for progress, ADGM will continue to attract leading financial institutions, asset managers, and exchanges, strengthening Abu Dhabi’s position as a premier global financial center,” Ramamurthy says.
The path forward: ADGM’s vision for 2025 and beyond
Looking ahead, ADGM is building on its 2024 momentum with ambitious plans for further growth and innovation. In asset management, the center aims to continue enhancing its fund framework and regulatory ecosystem, offering a range of structures from Qualified Investor Funds (QIFs) and public funds to sector-specific vehicles for venture capital and private equity.
ADGM serves as a key enabler for accelerated growth across strategic clusters such as hedge funds, private banking, wealth management, family offices, and digital assets, offering a robust regulatory framework and world-class infrastructure.
By driving innovation and fostering a dynamic ecosystem, ADGM supports the rapid expansion of these sectors, positioning them at the forefront of global financial markets. “Our goal is to make ADGM a top destination for global fund managers by offering flexibility, efficiency, and access to Abu Dhabi’s sovereign wealth funds and capital markets,” Ramamurthy explains.
For sustainable finance, ADGM is focused on enhancing climate risk management practices, implementing a structured mandatory ESG disclosure framework, and refining climate transition planning in alignment with the UAE’s Net-Zero goals.
The center is also exploring new strategic sectors for 2025 and beyond, including energy transition technologies and climate tech, to broaden its financial ecosystem and attract next-generation capital flows.
“Looking ahead, ADGM remains optimistic that its ecosystem’s evolution will continue to reinforce Abu Dhabi’s role as the ‘Capital of Capital’ — where growth, innovation, and responsible finance converge,” Ramamurthy states.
In a world where financial innovation and capital flows are increasingly moving eastward and southward, ADGM’s rise may well presage a broader realignment of the global financial landscape, one in which Abu Dhabi plays a central role as a nexus of traditional finance, technological innovation, and sustainable investment.
The path forward for ADGM appears bright, and will require continued vision, adaptability, and execution excellence to contribute towards realizing Abu Dhabi’s financial ambitions.
If its 2024 performance is any indication, this year will no doubt see the Falcon Economy soaring higher and strengthening its position as the world’s ‘Capital of Capital’.
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