#Abu Dhabi #United Arab Emirates #Financial Center #ADGM

ADGM Sees Remarkable Growth in Q1 2025

Abu Dhabi Global Market (ADGM), the UAE's premier international financial center, has kicked off 2025 with a significant first-quarter performance that reflects robust growth and enhanced global recognition. This success follows an already noteworthy record in 2024, indicating sustained momentum in the region’s financial landscape.

In the first quarter of 2025, ADGM reported substantial improvements across multiple metrics. This progress stems from heightened global investor confidence, regulatory enhancements, and strategic initiatives executed within its jurisdiction—a growing hub on Al Reem Island. The results not only affirm Abu Dhabi's status as a leading global financial powerhouse but also showcase ADGM as the preferred destination for both regional and global entities.

His Excellency Ahmed Jasim Al Zaabi, Chairman of ADGM, remarked, "The performance we achieved in Q1 2025 marks the dawn of another exceptional year. It highlights not only our capabilities in sustaining growth but also the trust we've secured from both global and regional institutions, further reinforcing Abu Dhabi's position as a hub for finance and innovation. ADGM continues to facilitate capital formation and innovation, aligning with the UAE's long-term economic goals."

Diverse Growth within the Financial Hub

The asset management sector notably contributed to ADGM's growth last year. In Q1 2025, the assets under management (AUM) surged by an impressive 33% compared to the same period in the previous year. By the end of Q1 2025, 119 asset and fund management firms were overseeing a total of 184 funds within ADGM’s jurisdiction.

ADGM stands out as the sole entity in the region implementing the direct application of English common law, which has attracted numerous global and regional firms seeking a transparent and stable regulatory environment. Ultimately, the total number of operational entities in ADGM increased by 43% from the previous year, reaching 2,781, while the count of financial services entities rose to 367, representing a healthy 26% growth.

Across the first quarter of 2025, ADGM saw a 67% increase in new licenses compared to the same quarter in 2024. Noteworthy new arrivals include industry leaders like Skadden, Investindustrial, NewVest, and Aquila Group, further establishing ADGM as the preferred internationally recognized hub for asset management, sustainable finance, and digital innovation.

Focus on Human Capital Development

In line with its ambition to be the 'Capital of Capital', ADGM has also prioritized the development of its human capital. The workforce on Al Maryah Island has expanded to over 29,000, reflecting a notable 17% increase from the previous year. Furthermore, ADGM issued a total of 3,509 new work permits to businesses that established themselves on Al Reem Island, underscoring the growing demand for skilled labor.

To enhance the protection of employees while maintaining business agility, ADGM introduced new Employment Regulations, ensuring a balanced approach to workplace protections.

Global Engagement and Partnerships

ADGM's outreach efforts continued to gain strength throughout Q1 2025, affirming its role as a global bridge within the financial sector. In January, ADGM representatives participated in iConnections Global Alts in Miami, engaging with hedge funds and private equity firms. There, they highlighted Abu Dhabi's strategic access to $1.7 trillion in sovereign wealth capital, promoting its investor-friendly ecosystem.

In February, a high-level delegation from ADGM joined forces with the Abu Dhabi Department of Economic Development to strengthen economic ties with China. With UAE-China trade projected to reach $200 billion by 2030, ADGM’s efforts aim to position Abu Dhabi as a key entry point for Chinese investments into the region. Subsequently, in April, ADGM officials visited Japan where they held extensive discussions with top financial institutions focusing on private banking and wealth management.

Successful Integration of Al Reem Island

As a result of ADGM’s strategic jurisdictional expansion to Al Reem Island, over 600 new businesses were established, with more than 500 existing firms transitioning to ADGM licenses. This development has brought the total number of new operational entities in the region to an impressive 1,100, showcasing the effectiveness of ADGM's expansion initiatives.

Innovation in Blockchain and Digital Assets

In a move to strengthen its reputation in digital asset regulation, ADGM signed a Memorandum of Understanding with Chainlink in March, allowing for the development of compliance-focused tokenization frameworks. Additionally, firms such as Stacks Asia and Bitgrit have joined ADGM, leveraging its Distributed Ledger Technology to enhance Abu Dhabi's status as a regional hub for blockchain innovation.

Emphasis on Sustainable Finance

The Abu Dhabi Sustainable Finance Declaration has garnered 170 signatories, encompassing a range of stakeholders from banks to SMEs. Recent additions like Aquila Capital and PricewaterhouseCoopers further emphasize ADGM’s commitment to sustainable finance principles.

Technological Advancements

ADGM launched a comprehensive mobile application aimed at simplifying the digital experiences for businesses and residents, providing a suite of regulatory updates, compliance tools, and networking features. Furthermore, a pioneering digital platform for real estate transactions was introduced, allowing virtual transactions involving various stakeholders—a defining moment for ADGM's tech-driven transformation.

As ADGM continues to lead the charge in financial innovation and growth, its first-quarter achievements for 2025 set a strong foundation for future developments, reaffirming its pivotal role within Abu Dhabi’s financial sector.