Abu Dhabi Global Market (ADGM), the international financial centre (IFC) of Abu Dhabi, saw significant expansion in 2024, with assets under management (AUM) increasing by 245%.
This growth coincided with the completion of ADGM’s jurisdictional expansion to Al Reem Island.
Ahmed Jasim Al Zaabi, Chairman of ADGM, stated:
“The unprecedented expansion and growth we have achieved is a reflection of Abu Dhabi as the ‘Capital of Capital’ – a hub where capital, ideas, and innovation converge.”
Asset Management Growth
ADGM’s AUM rose 245% in 2024, compared with a 35% increase in 2023. It now hosts 134 asset and fund managers overseeing 166 funds.
The centre also recorded an influx of global firms, with 79 new financial institutions licensed in 2024, bringing the total to 275.
Major firms that established operations in ADGM last year include BlackRock, Morgan Stanley, PGIM, Nuveen, General Atlantic, Lone Star Funds, Investindustrial, and AXA IM.
Business Expansion and Workforce Growth
Following its jurisdictional expansion to Al Reem Island, ADGM integrated 1,100 new businesses in 2024.
To facilitate this transition, non-financial and retail businesses on Al Reem Island were exempt from commercial licensing fees until the end of the year.
By year-end, ADGM had 2,381 operational entities, marking a 32% annual increase. Its workforce grew by 39%, reflecting rising investor interest.
Numou, ADGM’s SME lending platform launched in 2023, expanded its network in 2024, partnering with the Khalifa Fund for Enterprise Development and private credit providers such as Credible-X and Klubworks.
Regulatory Developments
ADGM’s Financial Services Regulatory Authority (FSRA) introduced new frameworks for stablecoins, ESG greenwashing, and IT risk management.
Updates were also made to Prudential Rules, aligning with Basel Committee recommendations. A whistleblowing framework and reporting portal were also introduced.
On real estate, ADGM’s Registration Authority implemented new regulations for off-plan developments and launched AccessRP, a digital platform for property transactions.
Sustainable Finance Initiatives
ADGM continued its focus on sustainable finance, publishing a discussion paper on regulatory expectations for ESG-labelled investment vehicles.
New asset managers with sustainable mandates included BlackRock, TPG, Nuveen, and PGIM.
The FSRA granted a Green Fund designation to Vortex Energy IV, a USD 1.8 billion AUM firm focused on energy transition investments.
ADGM also welcomed 44 new signatories to the Abu Dhabi Sustainable Finance Declaration, bringing the total to 160.
Growing Presence of Family Offices
In 2024, more family offices and high-net-worth individuals established operations in ADGM. Notable names included Leon Black’s Elysium Management, as well as family offices led by Asif Aziz, Wafic Said, and Kishin RK.
Global Outreach and Academic Initiatives
ADGM strengthened international ties through roadshows in key financial centres, including New York, London, Paris, Hong Kong, and Singapore.
Over 300 bilateral discussions were held with investors and financial institutions.
ADGM Academy expanded its educational offerings, training over 2,000 UAE Nationals for financial and fintech roles.
It also published 11 research reports on AI, fintech, and digital transformation while securing partnerships with institutions such as MIT and the Federal Tax Authority.
Featured image credit: edited from freepik
