ADGM has emerged as one of the world’s fastest-growing international financial centers, with assets under management soaring 245 percent in 2024 and an increase of 33 percent in Q1 2025 compared to Q1 2024.
This explosive growth, coupled with an increase in the number of registered entities to more than 11,000, signals a seismic shift in Abu Dhabi’s role within the global financial and investment landscape. The remarkable momentum has attracted an unprecedented roster of financial powerhouses — from Silicon Valley disruptors like Carta to established players such as Tradition, cryptocurrency pioneers including Bitcoin Suisse, and blue-chip asset managers like Polen Capital.
This diverse ecosystem reflects ADGM’s evolution into a comprehensive financial hub that increasingly rivals established centers in London, New York, and Tokyo. Global firms are increasingly choosing ADGM as the targeted international financial center to set up and operate from. A choice driven by ADGM’s strong regulatory framework, dynamic ecosystem, and strategic positioning.
Commenting on this Arvind Ramamurthy, chief market development officer, ADGM, says: “As a leading hub for asset management, wealth management, and family offices, ADGM offers the infrastructure and environment required by high-net-worth and ultra-high-net-worth individuals to establish and grow their presence. The consistent influx of top-tier global institutions reflects ADGM’s role as a trusted platform for innovation, capital formation, and cross-border growth.”
Read: Addleshaw Goddard strengthens Middle East operations with new office in ADGM
Traditional finance’s strategic pivot
ADGM’s appeal to traditional financial institutions continues to tell a compelling story.
Tradition is one of the world’s largest interdealer brokers and one of the first in its sector to establish a presence within ADGM. The move by Tradition is particularly significant given the company’s 60-year history and its role in facilitating trillions of dollars in trades annually, across global markets. Their Abu Dhabi office will serve as a strategic hub for Middle Eastern operations, connecting regional liquidity with global markets.
“The decision to establish an office in ADGM was driven by regulatory excellence, strategic location, and proximity to a growing number of our clients” notes Mike Anderson, CEO Tradition, EMEA. “ADGM offers us the perfect platform to serve our clients across the region whilst maintaining the highest international standards.”
Asset management’s new frontier
ADGM’s draw for the asset management sector reflects broader shifts in global capital allocation. Polen Capital, the US-based growth equity specialist managing over $30 billion in assets, has secured an ADGM license and appointed a regional head as part of its Middle East expansion strategy.
By the end of Q1 2025, the number of asset and fund managers based in ADGM had grown to 144, a figure that underscores the jurisdiction’s emergence as a major asset management hub. This growth has been fuelled by both new entrants and significant capital raising by existing managers.
Arcapita, the Bahrain-based alternative investment firm, expanded its regional footprint with an ADGM license and a new Abu Dhabi office. This move allows the firm to tap into the UAE’s growing pool of sophisticated investors whilst leveraging ADGM’s regulatory framework to access international markets.
Kimmeridge, the energy-focused private equity firm, launched its Abu Dhabi office and signed a memorandum of understanding with Mubadala Energy, demonstrating how ADGM facilitates partnerships between international firms and local sovereign wealth funds. Other global players within the asset management sector that have set up offices in ADGM include Harrison Street, Adam Street, Seviora, Aquila Group, Brown Advisory, Investindustrial and Partners Group that bring together almost $356 billion of AUMs.
Digital assets lead the charge
ADGM continues to grow its digital assets portfolio, with six Virtual Asset Providers (VASPs) currently registered within its jurisdiction, and others at the In-Principle Approval (IPA) stage. ADGM currently has the most comprehensive framework for institutional financial products and services in the UAE.
Bitcoin Suisse (BTCS), the Swiss cryptocurrency pioneer, recently secured IPA from ADGM’s Financial Services Regulatory Authority (FSRA). The firm’s decision to establish operations in Abu Dhabi reflects a broader trend of established crypto institutions seeking regulatory clarity and institutional-grade infrastructure.
“ADGM’s progressive approach to digital asset regulation has created an environment where innovation can flourish while maintaining the highest standards of investor protection,” says Ceyda Majcen, head of global expansion of Bitcoin Suisse and designated senior executive officer of BTCS (Middle East) Ltd. “The regulatory clarity here is among the best globally, which is precisely what institutional investors need when entering the digital asset space.”
This sentiment resonates throughout the digital asset ecosystem. Versifi, a leading digital assets trading platform, has been granted IPA for digital assets dealing in multilateral trading facilities (MTF) and over-the-counter (OTC) trading. The company’s decision to establish operations in ADGM reflects the jurisdiction’s sophisticated understanding of digital market infrastructure.
Stacks Asia DLT Foundation has also set up in ADGM, becoming the first Bitcoin-based foundation to do so, further pushing the momentum for Bitcoin layer-2 adoption across the Middle East and Asia. The Stacks Asia DLT Foundation leverages ADGM’s world-leading Distributed Ledger Technology (DLT) Foundations framework, recognized as the most progressive and flexible of its kind globally.
Meanwhile, Bitgrit has taken innovation a step further by launching the world’s first blockchain network for AI assets under ADGM’s regulatory umbrella. This groundbreaking initiative combines two of the most transformative technologies of our time — artificial intelligence (AI) and blockchain — positioning ADGM at the forefront of technological convergence in finance.
Notable additions to ADGM’s digital assets portfolio include Circle and Hidden Road who received their In-Principle Approval (IPA) from ADGM’s FSRA. To make its regulatory framework more robust, the FSRA has announced the implementation of amendments to its regulatory framework for digital assets, effective immediately.
The implemented amendments streamline the approval for Virtual Assets (VAs) as Accepted Virtual Assets (AVAs) within ADGM, while establishing enhanced capital requirements and fee structures for authorized firms conducting regulated activities in the digital asset space.
These revisions introduce targeted product intervention powers specific to virtual assets and formalize existing restrictions on privacy tokens and algorithmic stablecoins within the jurisdiction. Additionally, the amendments broaden investment opportunities for venture capital funds by expanding their permissible asset classes.
The insurance emergence
Perhaps one of the most significant developments is the establishment of major insurance and reinsurance operations within ADGM. International Holding Company (IHC) launched a global reinsurance platform based in ADGM in partnership with BlackRock, the world’s largest asset manager.
This partnership represents a new model for reinsurance, combining IHC’s regional expertise with BlackRock’s global asset management capabilities. The platform is expected to manage billions in reinsurance assets, positioning ADGM as a serious player in the global reinsurance market.
Technology as a differentiator
What sets ADGM apart from other financial centers is its embrace of technology across all sectors. Carta, the Silicon Valley-based equity management platform valued at over $7 billion, has received Financial Services Permission (FSP) from ADGM’s FSRA, bringing its innovative approach to equity management to the Middle East.
Carta’s presence in ADGM is particularly noteworthy as it signals the convergence of traditional financial services with modern technology platforms. The company’s software manages equity for over 30,000 companies globally, and its expansion to ADGM opens new opportunities for Middle Eastern startups and growth companies.
Compelling economics
The financial metrics underlying ADGM’s growth tell a story of accelerating momentum. Overall, ADGM achieved significant growth across key metrics, supported by ongoing global investor confidence, regulatory enhancements, and the successful implementation of major initiatives within its expanded jurisdiction on Al Reem Island.
The 245 percent surge in assets under management recorded at the end of 2024 represents one of the fastest growth rates among global financial centers. With 2,781 registered operational entities — up 43 percent from the same period last year — ADGM has demonstrated consistent expansion across all sectors.
With a growing number of VASPs registering in the jurisdiction, ADGM continues to highlight its strength as a hub for emerging financial technologies. Combined with a total of 184 funds which are now managed out of ADGM at the end of Q1 2025 and the number of financial service entities growing by 26 percent to 367, the international financial center has achieved significant growth to underscore its position as a key global financial hub on par with eminent financial centers in the world.
Regulatory excellence redefined
ADGM’s regulatory framework is based on the direct application of English common law, is a key differentiator. The FSRA has developed bespoke regulations for emerging sectors like digital assets, while maintaining equivalence with international standards for traditional financial services.
“ADGM has struck the perfect balance between innovation and regulation,” observes Sadiq Hussain, senior executive officer at Seviora Middle East, which recently opened its first Middle East office in ADGM.
“The regulatory team here understands that financial innovation requires a nuanced approach, not a one-size-fits-all rulebook.” The FSRA’s approach to licensing has been praised for its efficiency and transparency. This efficiency, combined with regulatory clarity, has made ADGM an attractive destination for firms looking to establish operations quickly.
Strategic location and progressive regulations
ADGM’s geographical position offers unique advantages for global financial firms. Situated between Asian and European markets, Abu Dhabi provides optimal time zone coverage for 24-hour trading operations. The eight-hour overlap with both London and Hong Kong trading hours creates unique arbitrage and trading opportunities.
ADGM is the first and only jurisdiction in the Middle East to adopt the direct application of English Common Law. The flexibility and progressiveness of ADGM’s regulatory frameworks make it open to the development of new financial products and services. Its robust and dynamic financial ecosystem and offering a stable, transparent, and business-friendly environment.
Furthermore, the UAE’s extensive network of double taxation treaties and investment protection agreements provides firms with efficient structures for cross-border transactions. ADGM entities benefit from over 130 such agreements, facilitating seamless international operations.
Infrastructure for the future
Beyond regulatory and business advantages, ADGM offers world-class infrastructure and quality of life. Al Maryah Island, where ADGM is headquartered, features state-of-the-art office buildings, residential complexes, and lifestyle amenities that rival any global financial center.
The upcoming ADGM Square development will add 6.5 million square feet of Grade A office space, ensuring capacity for continued growth. Advanced digital infrastructure, including dedicated fiber optic networks and proximity hosting for trading firms, provides the technological backbone necessary for modern finance.
The sustainability imperative
Environmental, social, and governance (ESG) considerations are central to ADGM’s strategy. Several green funds and ESG-focused asset managers including Aquila Capital, Digital Climate, GFC Global Carbon Development, and Vortex Energy have established operations, drawn by both regulatory support and demand for sustainable investments.
Building tomorrow’s talent pipeline
A critical factor in ADGM’s success has been its ability to attract and retain top-tier talent. The jurisdiction’s flexible visa policies, including 10-year golden visas for senior professionals, have made it easier for firms to relocate key personnel. ADGM Academy, the financial center’s knowledge arm, has partnered with leading global institutions to provide continuous professional development. The academy ensures a steady pipeline of qualified talent for the growing financial sector.
Looking forward: The next chapter
As ADGM enters its next phase of development, several trends are emerging. The convergence of traditional finance with digital assets is accelerating, with more hybrid firms establishing operations. The center is also seeing increased interest from family offices and wealth management firms attracted by the region’s growing affluent population.
ADGM’s transformation from an emerging financial center to a global hub hosting industry leaders represents more than just regional development — it signals a fundamental shift in the geography of global finance.
As traditional centers face regulatory uncertainty and technological disruption, ADGM has positioned itself as a forward-thinking alternative that combines regulatory excellence with innovation. The diverse array of firms choosing ADGM — from cryptocurrency pioneers to traditional brokers, from Silicon Valley tech platforms to European asset managers — demonstrates the jurisdiction’s broad appeal.
As the financial world becomes increasingly multipolar, ADGM has established Abu Dhabi not just as a regional hub, but as a truly global financial center. For international firms seeking growth opportunities, regulatory clarity, and access to capital, ADGM has emerged as the destination of choice. Its remarkable growth shows no signs of slowing.
The question for global financial institutions is no longer whether to consider ADGM, but how quickly they can establish their presence in what has become one of the world’s most secure and dynamic financial centers.
