The financial hub issued 1,271 new licences in H1 2024, a 20.5 per cent increase compared to the corresponding period a year ago
The Abu Dhabi Global Market (ADGM) said new company registrations surged by 31 per cent in the January-June period, bringing the number of active companies in the financial hub to 2,088, including 231 financial institutions.
The financial hub is increasingly becoming a global magnet for banks, venture capital and asset management firms and family offices, cementing Abu Dhabi’s position as the ‘Capital of Capital’. The growth bolsters the financial services sector’s contribution to Abu Dhabi’s non-oil economy, which grew to 9.7 per cent in Q1 2024.
ADGM issued 1,271 new licences in H1 2024, a 20.5 per cent increase compared to the corresponding period a year ago. It also granted 42 financial services permissions in the first six months of the year, a more than 90 per cent growth compared to 22 in 2023.
The financial centre has attracted Wall Street banks, including Goldman Sachs, Morgan Stanley, and Rothschild, which are setting up smaller offices in the UAE’s capital. These lenders are tapping into a wealthy market that is home to some of the world’s biggest sovereign wealth funds, such as ADIA, Mubadala, and ADQ.
“Through the establishment of a thriving ecosystem and our pursuit of innovation, excellence, and strategic development, we are proud to have propelled towards the exceptional success of realising the ADGM Growth Strategy 2023-2027 targets, underscoring the accelerated growth of Abu Dhabi’s financial industry,” said Ahmed Jasim Al Zaabi, the chairman of ADGM.
Some of the major names within the family offices sector include Ray Dalio, the billionaire and founder of hedge fund Bridgewater Associates, who set up shop in the city last year, and peers such as Brevan Howard.
Asset managers that received financial services permissions in the period include France’s AXA IM, Morgan Stanley and Investment firm GQG Partners, while companies such as Blue Owl, Aspen Digital, Peninsula and Blantyre Capital obtained preliminary approvals.
Furthermore, asset management continues to lead ADGM’s growth, expanding by 226 per cent compared to the first half of 2023. 112 fund and asset managers are now operating in ADGM, managing 141 funds.
ADGM and other financial centres in the region, such as the Dubai International Financial Centre, have also experienced significant demand for commercial real estate space and have initiated expansion plans.
Abu Dhabi’s financial centre expanded its area of jurisdiction by tenfold in May 2023, adding Al-Reem Island to its current location on Al-Maryah Island. The expansion made it one of the world’s largest financial districts, with a geographic area of 14.38 million square meters.
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