ADGM posts stellar Q1 with 33% surge in assets under management

Khaleej Times

03-06-2025

Abu Dhabi Global Market (ADGM), the UAE capital's international financial centre, kicked off 2025 with an impressive first quarter, reinforcing its position as a global powerhouse for finance and innovation.
With a 33 per cent surge in assets under management (AUM), 119 fund and asset managers now oversee 184 funds, a significant leap from last year. The number of operational entities soared by 43 per cent to 2,781, while financial services firms grew by 26 per cent to 367.
New licences issued jumped 67 per cent compared to Q1 2024, highlighting ADGM's growing appeal to global businesses.
This growth reflects Abu Dhabi's status as a trusted destination for investors, driven by ADGM's transparent regulatory framework, which directly applies English common law — a rarity in the region. This legal clarity, combined with strategic initiatives, has attracted top-tier firms like Skadden, Investindustrial, and Polen Capital to set up shop. The expansion to Al Reem Island has been a game-changer, with over 600 new businesses established and 500 existing companies transitioning to ADGM licences, bringing the total to 1,100 new entities.
A revised fee structure, slashing commercial licence costs by 50 per cent to a flat Dh1,000, has made it easier for small and medium enterprises (SMEs) to thrive.
ADGM's workforce on Al Maryah Island grew by 17 per cent to over 29,000, with 3,509 new work permits issued for Al Reem Island businesses. New Employment Regulations introduced in Q1 enhance workplace protections while maintaining business flexibility, solidifying ADGM's appeal as a talent hub. The ADGM Academy furthered this by creating 800 job opportunities for UAE nationals across nine specialized tracks, supported by 23 global certifications. Strategic partnerships with Arab Youth and the Federal Tax Authority are empowering young talent and aligning with national goals.
Globally, ADGM's outreach has strengthened its role as a financial bridge. In January, a delegation engaged hedge funds and private equity leaders at iConnections Global Alts Miami, highlighting Abu Dhabi's access to sovereign wealth capital. In February, ADGM joined a high-level mission to China, fostering ties as UAE-China trade is projected to boom. In April, meetings with Japanese financial institutions focused on wealth management and family businesses, signaling ADGM's growing influence in Asia.
Innovation is at ADGM's core. A new mobile app launched in Q1 offers real-time regulatory updates, compliance tools, and networking features, while a digital platform for real estate transactions enables fully virtual processes—a first in the region. ADGM's focus on blockchain is evident through a partnership with Chainlink to develop compliant tokenisation frameworks and the integration of firms like Stacks Asia into its Distributed Ledger Technology framework, positioning Abu Dhabi as a blockchain hub.
Sustainable finance is another priority, with the Abu Dhabi Sustainable Finance Declaration gaining 170 signatories, including Aquila Capital and PwC, promoting environmental, social, and governance (ESG) principles. The ADGM Research Centre's six papers on AI's role in finance underscore its commitment to cutting-edge technology.
Ahmed Jasim Al Zaabi, ADGM chairman, said, 'ADGM's Q1 2025 performance reflects the trust global institutions place in us, boosting Abu Dhabi's status as a financial and innovation hub. As the world's safest and most dynamic jurisdiction for asset management, we're driving sustainable growth and digital transformation.'