The Abu Dhabi Global Market (ADGM), the international financial centre of the UAE’s capital, has announced a remarkable increase of 211% in assets under management compared to the first quarter of 2023. This surge underscores ADGM’s growing prominence as a global financial hub.
Rapid Growth and Global Influx
ADGM’s asset management sector has witnessed a vigorous start to 2024, marked by an unprecedented influx of global asset managers establishing operations within the financial centre. By the end of March 2024, the number of fund and asset managers in ADGM reached 107, managing a total of 137 funds. This substantial growth highlights the increasing attractiveness of ADGM as a premier destination for financial services.
Strategic Position and Legal Framework
Ahmed Jasim Al Zaabi, Chairman of ADGM, highlighted the significance of this growth, stating, “Abu Dhabi once again affirms its position as the leading financial powerhouse of the MEASA region. This year holds the promise of even greater growth for ADGM and its ecosystem, marking a significant stride towards achieving Abu Dhabi’s economic goals and ambitions.”
A key factor contributing to ADGM’s allure is its adoption of English common law, making it the only jurisdiction in the region to do so. This legal framework has attracted a diverse array of prominent regional and global firms, further solidifying ADGM’s status as a holistic financial hub.
Expansion and International Outreach
The total number of operational entities in ADGM increased by 30% compared to the same period last year, reaching 1950, including 291 financial services entities. This growth is a testament to ADGM’s expanding influence and the robust infrastructure supporting its financial ecosystem.
In response to the rising demand from major global asset managers in sectors such as hedge funds, private equity, and venture capital, ADGM embarked on a trade mission during the first quarter of this year. This mission included multiple countries, starting with the United States, where over 40 bilateral discussions were held with hedge funds, private equity funds, and venture capital firms at the iConnections Global Alts 2024 event. This event is recognized as the largest gathering for alternative investment professionals, providing a unique platform for networking and collaboration.
Growing Workforce and Enhanced Attractiveness
ADGM’s workforce has expanded to over 25,000 individuals working on Al Maryah Island, with more talented professionals choosing Abu Dhabi as their destination to live, work, and thrive. Rankings have placed the city as the best and safest place to live in the region, offering a high quality of life with world-class amenities and infrastructure. This ranking further enhances ADGM’s attractiveness as a preferred destination for professionals and investors alike.
Future Prospects and Workforce Expansion
According to the 2024 Outlook, a comprehensive survey conducted among the ADGM community, the prospects for ADGM as a preferred destination are promising. The survey revealed that 70.81% of companies anticipate expanding their workforce in ADGM during 2024, with 29.93% expecting significant increases and 40.88% planning moderate growth in staffing. This optimistic outlook underscores the confidence that businesses have in ADGM’s continued growth and stability.
Strategic Partnerships and Technological Advancements
In a move to bolster technological innovation, ADGM introduced the DLT Foundations Regulations and signed a strategic partnership with the Solana Foundation, a non-profit organization dedicated to decentralization, adoption, and security on the Solana network.
This partnership aims to enhance Distributed Ledger Technology (DLT) solutions and advance blockchain innovation within ADGM.
The impressive surge in assets under management at ADGM is a clear indication of its rising status as a global financial hub. ADGM’s strategic legal framework, robust infrastructure, and commitment to innovation position it well to continue attracting top-tier global asset managers and investors.As ADGM progresses, it remains a pivotal player in achieving Abu Dhabi’s broader economic goals and ambitions.
