ADGM, the international financial centre (IFC) of the UAE’s capital, continues its growth trajectory, reporting solid performance in the first half of 2024.
As the fastest-growing financial centre and the only jurisdiction with the direct application of the English Common Law in the region, ADGM’s achievements and initiatives are said to be a catalyst to “the growth of Abu Dhabi’s financial sector growth.”
The momentum of ADGM bolsters the financial sector’s contribution “to Abu Dhabi’s non-oil economy, which grew to 9.7% in Q1 2024.”
ADGM is increasingly becoming a global magnet “for asset management firms, outstanding talent, and investments, and is a cornerstone in cementing Abu Dhabi’s position as the ‘Capital of Capital’.”
Ahmed Jasim Al Zaabi, Chairman of ADGM said:
“As a catalyst for Abu Dhabi’s financial sector, ADGM’s remarkable growth in the first half of 2024 fosters Abu Dhabi’s position as a premiere hub and a destination of choice for global, regional and local corporations and financial institutions. ADGM’s strategies have been aligned with Abu Dhabi’s visionary leadership to position the UAE’s capital as a leading international financial centre. Through the establishment of a thriving ecosystem and our pursuit of innovation, excellence, and strategic development, we are proud to have propelled towards the exceptional success of realising the ADGM Growth Strategy 2023-2027 targets, underscoring the accelerated growth of Abu Dhabi’s financial industry.”
He added:
“ADGM’s contribution to Abu Dhabi’s stature as a global financial powerhouse and its sustainable economic growth will continue to capitalise on opportunities that will further elevate Abu Dhabi’s Falcon Economy to unprecedented heights throughout this exceptionally successful year and beyond.”
One of the factors that has supported ADGM’s strong growth in H1 2024 is “the significant increase in operational entities, which have risen to 2,088, including 231 financial services entities – a 31% increase in operational entities compared to H1 2023.”
This growth is also complemented “by the number of Financial Services Permissions (FSP) granted in the first six months, equivalent to 42 – a growth of over 90% compared to the June 2023 numbers which stood at 22.”
Moreover, the number of licences issued at “the end of June 2024 showcased 1,271 new licences – 20.5% more licences than a year earlier.”
Financial Services Sector Led by Asset Management Positions Abu Dhabi as the Region’s Financial Hub
The asset management sector within ADGM continues “to thrive, with a notable surge in AUM, global asset managers, firms and funds being anchored.”
In the first six months of 2024, AUM grew “by 226% compared to the same period last year. By the end of June 2024, the number of fund and asset managers operating in ADGM reached 112, managing 141 funds.”
Some of the major names within the asset management sector “that have been granted an FSP include AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley.”
Furthermore, several entities within this space “have also received their In-Principle Approval (IPA) including Aspen Digital, Blantyre Capital, Blue Owl, Fiera Capital, Infini Capital, I Squared Capital, Ninety One Gulf Capital, Peninsula, Token Bay Capital, Triton, and Vizier.”
The pipeline of entities within the asset management sector “remains strong across hedge funds, private equity, institutional funds and venture capital firms set to be anchored in ADGM.”
