ADGM says assets under management rose by 35% in 2023

The Abu Dhabi Global Market (ADGM) said its assets under management rose by 35 per cent in 2023, as the city’s main financial centre continues to attract global investment firms and hedge funds.

The latest data from the financial hub shows that a total of 102 asset managers, comprising investment firms and hedge funds, who manage 141 funds have set up shop in Abu Dhabi.

Growth is attributed to the ADGM Financial Services Regulatory Authority’s (FSRA) regulatory framework that allows investment funds to invest in credit by originating and participating in credit facilities through its Private Credit Fund framework.

“Enhancing Abu Dhabi’s international standing as the capital of capital, ADGM has truly realised the capital city’s potential for the financial landscape and strategically unlocked opportunities within underlying sectors,” said Ahmed Al Jasim Al Zaabi, chairman of ADGM.

Al Zaabi said in just eight years, the centre has become one of the world’s largest financial districts and the fastest-growing international financial centre in the region.

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

ADGM said new company registrations surged by 32 per cent in 2023, bringing the number of active companies in the financial centre to 1,825 compared to 1,378 a year earlier.

“There are more than 125 firms that are already in the pipeline to be registered with ADGM,” the financial centre said in a statement.

Furthermore, the latest data from the financial hub shows that 88 financial institutions and two exchanges received In-Principle Approvals in 2023.

ADGM drives economic diversification

Abu Dhabi and nearby Dubai have become thriving global cities. The arrival of big names including JP Morgan, Rothschild & Co. and Morgan Stanley follows ADGM’s tenfold expansion in May 2023 – making it one of the world’s largest financial districts with a geographic area of 14.38 million square metres.

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

Its FSRA also began implementing its sustainable finance regulatory framework, comprising the region’s most comprehensive environmental, social and governance disclosure requirements.

The results follow the removal of the UAE from the grey list of the global watchdog Financial Action Task Force in February, a decision that is expected to lead to smoother foreign currency transactions and increased trade and investment.

Read: UAE’s great grey list escape: A ‘gradual thaw rather than instant spring’