Abu Dhabi’s ADGM posts robust growth in H1 2023

The Abu Dhabi Global Market (ADGM) said its assets under management (AuM) surged by a record 35 per cent in the first half of the year, as the city’s main financial centre continues to attract major global and regional players.

The latest data from the financial hub shows that a total of 102 asset managers, comprising investment firms and hedge funds, who manage 128 funds have set up shop in Abu Dhabi.

The attractiveness of ADGM has seen prominent global firms set up shop in ADGM in 2023 including Brevan Howard, Ardian, Goldman Sachs, Tikehau Capital, Blackstone, SBI Capital, Asian Infrastructure Investment Bank (AIIB), Apollo, Fifth Wall, Fidera and Vibrant Capital.

Earlier this year, the AIIB – a Dhs367bn multilateral development bank, signed an agreement to open its first overseas office in the ADGM. The AIIB’s mission is to finance infrastructure with sustainability at its core.

#ADGM achieved remarkable growth in H1 2023, as #AbuDhabi continues to thrive as the region’s financial powerhouse. Through Al Reem expansion, ADGM continues to position itself as a destination of choice for regional and international businesses.
? https://t.co/ubCENt01qX pic.twitter.com/jn2YXv0ELQ

— Abu Dhabi Global Market (@ADGlobalMarket) September 14, 2023

The hub granted 46 international and regional companies in-principle approval to operate within the ADGM in H1 2023, a 119 per cent increase compared to the year ago. The firms are expected to be fully operational soon.

“What we are witnessing in Abu Dhabi today, with some of the major global players choosing the capital city to base their business operations is nothing short of a major transition that is supporting the growth and diversification of the Falcon Economy,” said Ahmed Jasim Al Zaabi, member of Abu Dhabi’s Executive Council, chairman of the Abu Dhabi Department of Economic Development and ADGM.

“We are excited to see the growth numbers of ADGM as we end the first half of 2023 which reinforces our position as the fastest-growing international financial centre in the region.”

The financial hub is also a preferred destination for local and regional firms, including Abu Dhabi holding company ADQ, Abu Dhabi artificial intelligence company G42, Chimera, Gulf Capital, OneIM and Investcorp, the financial hub said in a statement.

ADGM creates an enabling environment

The centre’s Registration Authority published a consultation paper on the legislative framework for Distributed Ledger Technology Foundations in the first half of 2023.

ADGM also launched its inaugural Money Laundering and Terrorist Financing (ML/TF) Risk Assessment of ADGM Legal Persons and Arrangements Report (LPA Report) in May 2023.

The hub’s Financial Services Regulatory Authority also began implementing its sustainable finance regulatory framework, comprising the region’s most comprehensive environmental, social and governance disclosure requirements.

The financial centre’s milestones in H1 2023 include the expansion of its geographic area, bringing Al Reem Island under its jurisdiction, in addition to the existing Al Maryah Island. The expansion positioned the ADGM as one of the largest financial districts in the world with an area of 14.38 million square metres.

The results have demonstrated significant growth across various aspects, setting a positive tone for the rest of the year and continuing its contribution to positioning Abu Dhabi as a financial powerhouse and a falcon economy.

Read: Dubai Financial Market reports Dhs112.2m half-year profit, up 77%