ADGM, the international financial center (IFC) of the UAE’s capital, continues its strong performance, paving the way for another robust year as the fastest growing financial center in the region. The IFC marked a record-breaking start in the first quarter of 2024, with a 211 percent increase in Assets Under Management (AUM) compared to the same period in 2023.
The growth trajectory of ADGM’s AUM, coupled with a significant increase in the number of operational entities, size of workforce, and other elements of the IFC ecosystem during Q1 2024, underscores the concerted efforts and strategic initiatives undertaken to strengthen its position as a leading international financial hub. This reaffirms Abu Dhabi’s status as a global financial powerhouse and a destination of choice for regional and global entities.
Unprecedented influx of asset managers to ADGM
ADGM’s asset management sector began 2024 with vigor, witnessing an unprecedented influx of global asset managers establishing operations in the IFC. This surge pushed the size of AUM within ADGM during the first three months of 2024 to unprecedented figures, recording a growth of 211 percent compared to the same period in 2023. By the end of March 2024, the number of fund and asset managers operating in ADGM reached 107, managing 137 funds.
Read more: ADGM ensures seamless transition with incentive program for Al Reem Island businesses
The attractiveness of ADGM as a holistic financial hub, being the sole jurisdiction in the region to adopt the direct application of English common law, has resulted in an ongoing increase in the number and diversity of prominent regional and global firms establishing in the IFC. By the end of March 2024, the total number of operational entities in ADGM increased by 30 percent compared to the same period last year, reaching 1950, including 291 financial services entities.
Expanding global outreach, partnerships
In response to unprecedented demand from major global asset managers in the hedge fund, private equity, and venture capital sectors, ADGM has embarked on a trade mission to multiple countries, starting with the United States, where more than 40 bilateral discussions were held with hedge funds, private equity funds, and venture capital firms at the iConnections Global Alts 2024 event – recognized as the largest gathering for alternative investment professionals.
Thriving workforce, quality of life in Abu Dhabi
ADGM’s workforce has grown to over 25,000 individuals working on Al Maryah Island, as more talented professionals choose Abu Dhabi as their destination to live, work, and thrive. Abu Dhabi’s appeal extends beyond its business opportunities, as it has been ranked as the best and safest city to live in the region, offering a high quality of life with world-class amenities and infrastructure.
Optimistic expansion plans among ADGM community
A comprehensive survey conducted among the ADGM community provides insight into the promising prospects for the IFC as a preferred destination. A total of 70.81 percent of companies anticipate expanding their workforce in ADGM during 2024, with 29.93 percent expecting significant increases and 40.88 percent planning moderate growth in staffing. This collective optimism reflects Abu Dhabi’s robust economic health and the strong confidence within the business community in the conducive business environment of the IFC.
Empowering Emirati talent at ADGM Academy
During Q1 2024, the ADGM Academy has achieved further success in training and placing hundreds of Emirati nationals in professional job profiles across various companies in the UAE, equipping them with the necessary skills and knowledge to excel in their chosen fields.
Blockchain innovation, regulatory excellence
Following the introduction of the DLT Foundations Regulations, ADGM signed a strategic partnership with the Solana Foundation, a non-profit organization dedicated to decentralization, adoption, and security on the Solana network. This significant partnership aims to enhance Distributed Ledger Technology (DLT) solutions and advance blockchain innovation, aligning with ADGM’s strategic vision of becoming a central hub for technology-driven financial services.
Through proactive measures in enhancing regulatory frameworks and investor confidence, ADGM continues to play a pivotal role in fostering financial stability and driving economic growth, including by becoming a member of the International Forum of Independent Audit Regulators (IFIAR), reinforcing its commitment to sustaining regulatory excellence.
Facilitating the transition to ADGM on Al Reem Island
2024 is the year of transitioning businesses on Al Reem Island for ADGM, with several initiatives announced and implemented during Q1 2024 to support the migration process. This includes the launch of an information center in Shams Boutik Mall on Al Reem Island, offering comprehensive support and gathering feedback to engage with businesses and provide step-by-step guidance for registration within ADGM. Additionally, ADGM unveiled a new incentive initiative to relieve eligible businesses on the island from any fees associated with acquiring an ADGM commercial license until October 31, 2024, facilitating a seamless transition for these non-financial and retail entities.
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