Abu Dhabi Global Market (ADGM) experienced a remarkable growth in the first half of 2024, showcasing a 226% increase in assets under management compared to the same period in 2023. This impressive growth reinforces ADGM’s status as a major hub for asset management in the MENA region, attracting top-tier asset managers, investment funds, and private equity firms.
Background and Key Highlights
ADGM has seen a substantial rise in the number of operational entities, with 2,088 entities now active, including 231 financial services entities, marking an increase of 31% compared to the first half of 2023. The number of Financial Services Permissions (FSP) granted has also surged considerably, with 42 permissions issued in the first six months of 2024, reflecting growth exceeding 90% compared to the same timeframe in 2023.
In-Depth Analysis and Development
The growth in assets under management is attributed to the influx of global asset managers establishing their operations at ADGM. Notable firms such as Brevan Howard, Apollo, NinetyOne, Rothschild & Co, GQG Partners, and TCI have contributed to this expansion. ADGM’s participation in international events like iConnections Global Alts 2024 in Miami has enhanced its global appeal and facilitated significant partnerships. Furthermore, Abu Dhabi’s non-oil economy has benefited from this growth, recording a 9.7% increase in the first quarter of 2024.
Strategic Initiatives and Future Outlook
ADGM’s strategic initiatives, including the launch of new incentive programs for businesses on Al Reem Island, have been pivotal in attracting more entities. The initiative waived all fees related to obtaining an ADGM business license for eligible companies until October 31, 2024. These efforts align with Abu Dhabi’s visionary leadership to position the city as a major international financial center, promoting innovation, excellence, and strategic development.
In summary, ADGM’s record growth underscores its position as a leading financial hub in the MENA region. With ongoing strategic initiatives and a thriving ecosystem, ADGM is poised to attract further global talent, investment, and financial institutions, thereby enhancing Abu Dhabi’s status as a global financial powerhouse.
