ADGM, the international financial centre of Abu Dhabi, announced another quarter of unprecedented growth, with exceptional achievements for the third quarter of 2024 across key metrics.
The results underscore ADGM’s pivotal role in Abu Dhabi’s strategic ambition to diversify its economy and solidify its position as a premier global destination for finance, investment, and innovation. ADGM continues to align with Abu Dhabi’s economic growth, which registered a 6.6 percent growth in non-oil GDP in the Q2 of 2024.
Asset management leads growth
ADGM recorded a substantial increase of 215 percent in total assets under management (AUM) in Q3 2024 compared to Q3 2023, demonstrating its rapid ascent as a top asset management hub in the MENA region. This growth highlights ADGM’s ability to attract high-calibre asset managers, investment funds, and private equity firms, establishing it as a go-to location for institutional investors worldwide. This is also reflected in the growth of the total fund and asset managers, which reached 128, managing 156 funds, as of the end of Q3 2024.
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Joiners during Q3 of 2024 include PGIM, Nuveen and Elysium Management. PGIM is a $1.33 trillion US asset manager, while Nuveen manages $1.2 trillion of assets. Other recent joiners include Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, and Gemcorp Capital.
His Excellency Ahmed Jasim Al Zaabi, chairman of ADGM, said: “Our record-breaking achievements in Q3 exemplify the appeal of ADGM’s world-class ecosystem that brings together a stable regulatory environment, strategic location and ease of doing business. The continued influx of businesses and investors into ADGM highlights Abu Dhabi’s competitive advantage in the global financial industry and the growth of the Falcon Economy. As we pave the ‘Path to Forward’, we aim to continue building on this momentum to deliver further growth and innovation that benefits not just Abu Dhabi and the UAE, but the wider financial community.”
Surge in new registrations
In Q3 of 2024, ADGM saw a 33 percent rise in the number of newly issued business licenses compared to the same period last year. A total of 759 new licenses were issued over the period to financial, non-financial and retail firms. The total number of operational entities within ADGM’s jurisdiction jumped to 2,251, an impressive 31 percent year-on-year growth. The surge reflects strong demand from a diverse range of sectors, including asset management, FinTech, and professional services, within ADGM’s ecosystem.
Furthermore, the workforce within ADGM’s jurisdiction has been steadily increasing with more and more businesses joining its vibrant ecosystem. Since Q3 2023, there has been an influx of 4,433 workers, marking an increase of 35 percent in the overall workforce.
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New initiatives, stronger regulations
ADGM’s regulatory framework has been at the forefront of introducing new regulatory enhancements aimed at supporting the dynamic and evolving needs of its expanding ecosystem. This included introducing the new whistleblowing framework reflecting ADGM’s commitment to sustain transparency, accountability and market integrity within the IFC. On the digital assets side, the Financial Services Regulatory Authority (FSRA) of ADGM published a consultation paper to enhance its regulatory framework to allow the issuance of fiat-referenced tokens (FRTs), a category of stablecoins that are backed by high-quality, liquid assets denominated in the same currency as the FRT and that can be liquidated rapidly with minimal adverse price effect.
Al Reem Island transition
After expanding its jurisdiction to Al Reem Island, ADGM entered the transition period where businesses are moving to ADGM licenses to be regulated by its regulations. An incentive initiative was introduced in March to ensure a seamless transition by exempting businesses operating within the non-financial and retail sectors on Al Reem Island from paying any fees to obtain an ADGM commercial license until October 31, 2024. This date has now been extended to December 31, 2024.
International roadshows
In line with its mission to enhance global connectivity and attract investments, ADGM participated in a series of international roadshows during Q3 of this year. One of the major ones was several high-level engagements in China and Hong Kong to celebrate 40 years of bilateral relations between the UAE and China. Furthermore, ADGM delegations continued their series of engagements with financial leaders and authorities in the international market covering Singapore, London, Washington DC and New York. This brings the total number of bilateral discussions to more than 150 across key international markets.
Read: ADGM strengthens global ties with U.S. roadshows
ADFW
Looking forward, as ADGM nears the end of the 2024 financial year, it is set to host the third edition of its flagship event series, Abu Dhabi Finance Week (ADFW) in December. The event is expected to bring over 20,000 delegates to explore the theme ‘Welcome to the Capital of Capital’.
