ADGM Sees Surge In Asset Management And New Entrants In Q1 2025

Abu Dhabi Global Market reported a 33% year-on-year increase in assets under management for the first quarter of 2025, reaching a total managed by 119 fund and asset managers across 184 funds. This growth underscores ADGM's expanding role as a prominent international financial centre.

The financial free zone experienced a 67% rise in new licences issued compared to the same period in 2024, bringing the total number of operational entities to 2,781-a 43% annual increase. Financial services entities specifically grew by 26%, totalling 367 by the end of March.

Notable firms establishing a presence in ADGM during this period include Skadden, Investindustrial, NewVest, Arcapita, Polen Capital, Seviora, Olive Gaea, TON, and Aquila Group. Additionally, German asset manager Patrizia received regulatory approval to commence operations, marking its first office in the Middle East.

The workforce on Al Maryah Island, ADGM's primary location, expanded by 17% year-on-year, surpassing 29,000 individuals. The extension of ADGM's jurisdiction to Al Reem Island contributed to this growth, with over 600 new businesses established in the expanded area.

ADGM's Chairman, Ahmed Jasim Al Zaabi, attributed the strong performance to sustained global investor confidence and strategic initiatives aimed at enhancing Abu Dhabi's status as a financial and innovation hub. He emphasized ADGM's commitment to supporting capital formation and digital transformation across sectors.

The financial centre's appeal is further bolstered by its adoption of English common law, providing a clear and stable legal framework for international businesses. This legal environment, combined with regulatory enhancements and a streamlined licensing process, continues to attract a diverse set of global firms seeking to leverage Abu Dhabi's financial infrastructure.

ADGM's focus on digital assets and sustainable finance is evident through partnerships and initiatives launched during the quarter. The collaboration with Chainlink aims to develop robust systems for digital tokens and financial tools, while the Abu Dhabi Sustainable Finance Declaration now boasts 170 signatories, reflecting a growing commitment to responsible investment practices.

The ADGM Academy played a significant role in workforce development, facilitating job opportunities for UAE nationals through specialized training programs. The academy also released research papers focusing on the future of finance in the UAE, highlighting the impact of emerging technologies on the sector.

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