ADGM strengthens position as fastest-growing financial centre in MENA, with 245% growth in assets under management

ADGM, the international financial centre of Abu Dhabi, achieved unprecedented growth in 2024, with assets under management increasing 245 per cent, reinforcing Abu Dhabi’s position as the Capital of Capital, supported by regulatory advancements and the completion of the transition period following its expansion to Al Reem Island.

His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, said: “Abu Dhabi stands at the forefront of global finance, exemplifying stability, ambition, and economic growth. As the Falcon Economy reinforces its position as a premier destination for investment and innovation, ADGM plays a crucial role in supporting this growth as the world's safest and most dynamic jurisdiction for asset and wealth management.

“The unprecedented expansion and growth we have achieved is a reflection of Abu Dhabi as the Capital of Capital, a dynamic hub where capital, ideas, and innovation converge to shape the financial landscape of tomorrow. As we look ahead, ADGM remains committed to fostering a world-class financial ecosystem that is resilient, progressive, and ready for global impact."

ADGM recorded a 245 per cent increase in assets under management in 2024, compared with a 35 per cent increase in 2023. It is now home to 134 asset and fund managers overseeing 166 funds. This growth is reflected in the surge of new licences issued, with top global firms choosing ADGM as their regional hub. During 2024, ADGM licensed 79 new financial institutions, bringing the total within its jurisdiction to 275.

In 2024, several leading financial institutions, including global giants such as Blackrock, Polen Capital, PGIM, Nuveen, General Atlantic, Lone Star Funds, Investindustrial, Marshall Wace, AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley established operations in Abu Dhabi.

After expanding its jurisdiction to Al Reem Island in 2023, ADGM concluded the integration of the island at the end of 2024. A total of 1,100 Al Reem businesses, including migrating and new, now operate under ADGM’s jurisdiction. ADGM introduced incentives such as exempting businesses within the non-financial and retail sectors on Al Reem Island from paying any fees to obtain an ADGM commercial licence until 31 December 2024 to ensure a smooth transition process. Other major initiatives included significant revisions to its licensing fee schedule and a Memorandum of Understanding (MoU) with the Department of Municipalities and Transport (DMT) to facilitate the transfer of real estate services within ADGM’s expanded jurisdiction.

During 2024, ADGM reinforced its position as the fastest-growing international financial centre in MENA, with a total of 2,381 operational entities, reflecting a 32 per cent year-on-year growth. This growing business community drove a surge in workforce numbers, with a 39 per cent increase in ADGM’s overall workforce.

In the small and medium-sized enterprises sector, Numou, a subsidiary of ADGM that was launched in 2023 as a platform for businesses to access a diverse range of financial products, expanded its lending partner network and strengthened its position as an innovative digital lending marketplace in 2024. The platform now features strategic collaborations with leading institutions, including the Khalifa Fund for Enterprise Development and private credit providers such as Credible-X, Klubworks, and NymCard Payment Technologies.

In 2024, ADGM’s Financial Services Regulatory Authority (FSRA) introduced regulatory frameworks that reinforced its reputation as a globally trusted financial jurisdiction and ensured that innovation and stability remain core ADGM priorities. Key developments included regulations for fiat-referenced tokens (stablecoins), guidance on ESG Greenwashing, and IT Risk Management, as well as updates to Prudential Rules in alignment with Basel Committee recommendations. ADGM also implemented a robust whistleblowing framework and launched a dedicated Whistleblower Reporting Portal to promote financial integrity and regulatory compliance.

On real estate, ADGM’s Registration Authority played a pivotal role in integrating Al Reem Island, enhancing real property regulations, introducing new off-plan development regulations and a digital platform, AccessRP. Such innovation ensured seamless registration, verification, and transaction capabilities, positioning ADGM as a leader in real estate frameworks.

ADGM reaffirmed its leadership in sustainable finance in 2024 by publishing a discussion paper to enhance the region’s first comprehensive Sustainable Finance Regulatory Framework. The paper seeks input on proposed guidelines outlining the FSRA’s expectations for ESG-labelled investment vehicles and appropriate next steps in the development of regulatory expectations about climate-related risk management and transition planning.

Prominent asset managers with sustainable investing mandates, which were set up in ADGM in 2024 include TPG, Patrizia, Alterra, Fiera Capital, Nuveen, Kimmeridge, Marshall Wace, PGIM, Polen Capital, Joy Capital, BlackRock, General Atlantic, Ninety One, Golub Capital, APAX, and AXA IM.

Another notable development within this sector was the FSRA of ADGM granting a new Green Fund Designation to Vortex Energy IV, a US$1.8 billion AUM firm, funded and supported by Abu Dhabi SWFs and institutional investors. The fund is a leading energy transition investment manager based within ADGM, which channels capital towards green investments globally.

The IFC also welcomed 44 new signatories to the Abu Dhabi Sustainable Finance Declaration, bringing the total to 160 committed members, further reinforcing its commitment to responsible financial practices.

A growing number of global and regional family offices and billionaires chose Abu Dhabi, and specifically, ADGM, to expand their business operations in the region. Leon Black, the founder of Apollo Global Management and a leading figure in private equity with a net worth of over US$14 billion, established a new branch of his family office, Elysium Management, at ADGM.

More recently, a number of billionaire-led family offices, including those of British businessman Asif Aziz, prominent philanthropist and financial strategist Wafic Said, and Singaporean entrepreneur and real estate leader Kishin RK, announced plans to set up in ADGM, underscoring the centre’s growing appeal as a global wealth management hub.

ADGM extended its global presence by hosting several roadshows in key financial markets. ADGM took part in successful roadshows across major cities including New York, Washington, Paris, Switzerland, Hong Kong, Shanghai, Singapore, and London.

During these engagements, ADGM highlighted Abu Dhabi’s dynamic financial ecosystem to institutional investors, asset managers, and global financial leaders, bringing the total number of bilateral discussions to more than 300 across key international markets including the US, London, Europe, Hong Kong, Singapore, Korea, and South Africa.

ADGM’s knowledge arm, ADGM Academy (ADGMA), experienced substantial growth in 2024, doubling its physical space and enhancing offerings across key areas such as occupational assessments, qualification examinations, language testing, consultancy, and executive coaching.

National talent development continued to be a key focus for ADGMA in 2024, with more than 2,000 UAE Nationals trained and placed in pivotal financial and fintech roles. The ADGMA Research Centre contributed to the academic landscape, publishing 11 reports on emerging topics such as AI, fintech, cybersecurity, and digital transformation. Additionally, ADGMA extended its global reach, offering more than 40 globally recognised certifications and securing eight accreditations from prestigious awarding bodies.

ADGMA also reinforced strategic collaborations with the signing of 25 agreements with top global institutions, including MIT, WMI, and Ray Dalio, as well as UAE federal entities such as GPSAA and the Federal Tax Authority.

Abu Dhabi Finance Week (ADFW) 2024 welcomed more than 20,000 participants from over 172 countries, including global financial firms collectively managing more than US$42.5 trillion in assets. Hosted by ADGM, the week featured more than 50 events and hosted over 600 influential speakers, including prominent figures from the world’s leading financial institutions, offering invaluable insights on global economic transitions. The agenda for ADFW 2024 featured more than 350 thematic sessions across industry-shaping events and strategic forums.

ADGM’s strategic vision for 2025 is shaped by its new brand, Path to Forward, which reflects its commitment to shaping the future of finance through growth, innovation, and global connectivity. As a dynamic financial hub built for progress, ADGM will continue to attract leading financial institutions, asset managers, and exchanges, strengthening Abu Dhabi’s position as a premier global financial centre. The ongoing development of infrastructure within ADGM’s expanded jurisdiction will further enhance its business-friendly environment, reinforcing Abu Dhabi’s status as the Capital of Capital and setting the stage for another year of transformative achievements.