ADGM Kicks Off 2025 with Impressive First Quarter Growth Performance

ADGM's Stellar First Quarter of 2025

The Abu Dhabi Global Market (ADGM), the international financial center located in the capital of the United Arab Emirates, has begun the year 2025 with exceptional performance in the first quarter. This quarter has seen robust growth and enhanced global recognition, following a record-breaking 2024.

During the first quarter of 2025, the ADGM demonstrated considerable growth across critical indicators. This progress was driven by sustained confidence from global investors, regulatory improvements, and the successful implementation of major initiatives across its expanded jurisdiction on Al Reem Island.

Keeping Up with Global Financial Trends

ADGM's focus on enhancing its status as a leading international financial hub has reaffirmed Abu Dhabi's position as a global financial powerhouse and a prime destination for both regional and international entities. His Excellency Ahmed Jasim Al Zaabi, ADGM's Chairman, commented on Q1 2025's performance, stating, "The results we achieved are pivotal, reflecting our sustained growth capabilities and the trust we have cultivated among global institutions. This validates Abu Dhabi’s role as a world-leading financial and innovation hub. We will continue our robust growth trajectory, welcoming top companies and deepening international partnerships while advocating for sustainable digital transformation across sectors."

Asset Management Sector's Growth

The asset management sector emerged as a key indicator of ADGM's growth in the previous year, with assets under management surging by 33% compared to Q1 2024. By the end of the first quarter, 119 asset managers were overseeing a total of 184 funds within ADGM. As the only jurisdiction in the region applying English common law, ADGM's transparent, stable, and legally secure environment attracts a growing number of global and regional entities. In fact, the total number of operational entities in ADGM rose by 43% from the same period last year to 2,781, while the number of financial services entities climbed to 367, reflecting a remarkable 26% growth.

Surge in New Licenses

The quarter saw a significant 67% increase in new licenses compared to Q1 2024, with prominent firms such as Skadden, Investindustrial, NewVest, and others establishing a presence in ADGM. This trend signifies a diverse array of sectors positioning ADGM as a preferred international hub for asset management, sustainable finance, legal services, and digital innovation.

Human Capital Growth

Within ADGM's strategy, human capital development remains a priority. The workforce on Al Maryah Island has exceeded 29,000 individuals, growing by 17% year-on-year. In addition, ADGM has facilitated the issuance of 3,509 new work permits to companies on Al Reem Island, reflecting a strong commitment to human resources. To bolster workforce protections while maintaining business flexibility, ADGM has also launched new employment regulations.

International Engagement and Strategic Initiatives

The first quarter of 2025 showcased ADGM's international engagement efforts, reinforcing its role as a global bridge for Abu Dhabi's financial sector growth. In January, ADGM participated in the iConnections Global Alts Miami event, enhancing relationships with hedge funds, private equity firms, and venture capital leaders. High-level meetings in New York and Washington further solidified Abu Dhabi's access to $1.7 trillion of sovereign capital, promoting a favorable investment climate.

February marked ADGM's involvement in a high-profile delegation to China, aiming to bolster bilateral economic ties as trade forecasts between the UAE and China reach $200 billion by 2030. This positions ADGM as a vital entry point for Chinese capital into the region. Subsequently, an April delegation to Japan involved around 30 strategic meetings with top financial institutions, emphasizing the commitment of Japanese companies to international partnerships.

The Integration of Al Reem Island

The completion of ADGM's jurisdiction expansion to Al Reem Island yielded promising outcomes, with over 600 new businesses setting up operations in this area during Q1 2025. Furthermore, more than 500 existing businesses have successfully acquired ADGM licenses, increasing the total of new entities operating under the expanded jurisdiction to 1,100.

Focus on Blockchain and Digital Initiatives

ADGM's regulatory advancements in the digital asset arena included signing a memorandum of understanding with Chainlink, a finance sector standard for