ADGM, the international financial centre (IFC) of Abu Dhabi, announced another quarter of steady growth, with a number of key achievements for the third quarter (Q3) of 2024 across various metrics.
The results are said to underscore ADGM’s role in Abu Dhabi’s strategic goal to diversify its economy and enhance its position as a destination for finance, investment, and innovation.
ADGM said that it continues to align with Abu Dhabi’s economic growth, which reportedly achieved a 6.6% growth in non-oil GDP during Q2 of 2024.
Ahmed Jasim Al Zaabi, the Chairman of ADGM, remarked that their achievements in Q3 exemplify the appeal of ADGM’s ecosystem that brings together a “stable regulatory environment, strategic location and ease of doing business.” They added that the continued influx of businesses and investors into ADGM highlights Abu Dhabi’s “competitive advantage in the global financial industry and the growth of the Falcon Economy.”
As they pave the ‘Path to Forward’, they aim to continue “building on this momentum to deliver further growth and innovation that benefits not just Abu Dhabi and the UAE, but the wider financial community.”
As noted in the update, ADGM recorded an increase of 215% in total Assets Under Management in Q3 2024 compared to Q3 2023.
This highlights ADGM’s ability to attract asset managers, investment funds, and private equity firms. This is said to be reflected in the growth of the total fund and asset managers, which “reached 128, managing 156 funds, as of the end of Q3 2024.”
Joiners during the Q3 of 2024 include: PGIM, Nuveen and Elysium Management. PGIM is a USD1.33 trillion US asset manager, while Nuveen manages USD1.2 trillion of assets. Other recent joiners reportedly include Stonepeak, an alternative investment firm “specializing in infrastructure and real assets, and Gemcorp Capital.”
In Q3 of 2024, ADGM saw a 33% rise in the “number of newly issued business licenses compared to the same period last year.”
A total of 759 new licenses were “issued over the period to financial, non-financial and retail firms.”
The total number of operational entities within ADGM’s jurisdiction jumped to “2,251, a 31% year-on-year growth.”
The surge reflects demand from a range of sectors, including asset management, FinTech, and professional services.
ADGM notably launched its brand ‘Path to Forward,’ which captures its role as a sustainable, and “future-focused” financial centre.
ADGM’s regulatory framework, underpinned by the application of English Common Law, continues to provide “transparency and trust, attracting global firms and solidifying its reputation as a secure and reliable financial jurisdiction.”
It has been at the forefront of introducing regulatory enhancements aimed at supporting the dynamic and evolving needs of its expanding ecosystem.
On the digital assets side, the Financial Services Regulatory Authority (FSRA) of ADGM published a consultation paper to “enhance its regulatory framework to allow the issuance of Fiat-Referenced Tokens (FRTs), a category of stablecoins that are backed by high-quality, liquid assets denominated in the same currency as the FRT and that can be liquidated rapidly with minimal adverse price effect.”