ADGM Sees Remarkable Growth and Global Recognition in Q1 2025

ADGM's Strong Performance in Q1 2025

ADGM, the international financial center located in the capital of the UAE, initiated the year 2025 with remarkable performance, continuing the momentum from an extraordinary 2024. The first quarter of 2025 reflected substantial growth across all critical metrics, buoyed by ongoing global investor confidence, regulatory enhancements, and the successful execution of key initiatives across its expanded jurisdiction on Al Reem Island.

Ahmed Jasim Al Zaabi, Chairman of ADGM, emphasized the growth trajectory by stating, "The first quarter of 2025 marks the beginning of another significant year. This not only demonstrates ADGM's capability to achieve sustainable growth but also underscores the trust it has gained from global and regional institutions, fortifying Abu Dhabi's status as a global financial and innovation hub. ADGM continues to expand and diversify, attracting leading companies, deepening international partnerships, and driving digital and sustainable transformations across all sectors. ADGM will persist in contributing to capital formation and innovation, aligned with the UAE's long-term economic vision."

Diverse Growth in the 'Capital of Capital'

The asset management sector has been a crucial driver of ADGM's growth. In Q1 2025, the total assets under management surged by 33% compared to the same quarter in 2024. By the end of the first quarter, ADGM housed 119 asset managers and fund managers overseeing a total of 184 funds.

As the only jurisdiction in the region applying English Common Law directly, ADGM offers transparency, stability, legal certainty, and familiarity with an established regulatory framework, which has led to an increasing number of global and regional firms setting up operations there. The total number of operational entities at ADGM rose by 43% to 2,781 compared to the previous year, with financial services entities increasing by 26% to 367.

Moreover, the number of new licenses granted surged by 67% in Q1 2025 compared to Q1 2024. Noteworthy companies such as Skadden, Investindustrial, NewVest, Arcapita, Polen Capital, Seviora, Olive Gaea, TON, and Aquila Group established a presence during this period, further positioning ADGM as a preferred international center for asset management, sustainable finance, legal services, and digital innovation.

Strategic Human Capital Growth

An essential focus area for ADGM in its 'Capital of Capital' concept has been human capital. Consequently, the workforce on Al Maryah Island has grown to over 29,000, marking a 17% increase year-over-year. Additionally, 3,509 new ADGM work permits were issued to firms relocating to Al Reem Island.

In line with its human capital emphasis, ADGM also introduced new employment regulations aimed at enhancing workplace protection while maintaining business flexibility.

Global Engagement and Strategic Alliances

ADGM's international engagements remained robust in Q1 2025, further reinforcing its role as a global bridge for Abu Dhabi's financial sector growth. In January, an ADGM delegation returned to the iConnections Global Alts Miami event to deepen ties with hedge funds, private equity firms, and leading venture capitalists. The group held bilateral meetings in New York and Washington, participating in a panel discussion titled "Abu Dhabi: The Capital of Capital," illustrating the Emirate's strategic access to $1.7 trillion in sovereign capital and its investor-friendly ecosystem.

In February, ADGM joined a high-ranking delegation from the Abu Dhabi Department of Economic Development (ADDED) to China, designed to deepen bilateral economic relations as trade volume between the UAE and China is expected to reach $200 billion by 2030, strengthening ADGM's position as a vital conduit for Chinese capital in the region. Furthermore, a senior ADGM delegation visited Japan in early April, engaging in nearly 30 strategic bilateral meetings with leading financial institutions, focusing on key sectors such as private banking, wealth management, and family-owned businesses.

Integration of Al Reem Island

In Q1 2025, ADGM completed its expansion into Al Reem Island, showcasing strong results. More than 600 new companies established operations on Al Reem Island, with over 500 existing companies transitioning to ADGM licenses. Overall, 1,100 new companies are now active under ADGM's expanded jurisdiction.

Strategic Steps Towards Blockchain Innovation and Tokenization

To strengthen its regulatory leadership in digital assets, ADGM signed a memorandum of understanding with Chainlink in March, the industry standard for on-chain financing. This collaboration will facilitate the development of compliant tokenization frameworks by leveraging Chainlink's infrastructure and expertise.

Additionally, ADGM welcomed Stacks Asia and Bitgrit into its ecosystem in Q1 2025, utilizing ADGM's globally leading Distributed Ledger Technology (DLT) Foundations Framework. These initiatives amplify Abu Dhabi's profile as an emerging center for blockchain innovations on both regional and global fronts.

Continual Growth in Sustainable Finance

The Abu Dhabi Sustainable Finance Declaration now boasts 170 signatories, including banks, asset managers, investment funds, and small to medium-sized enterprises (SMEs). Recent signatories include Aquila Capital, Century Financial, Oryx Global Partners, PricewaterhouseCoopers (PwC), and Olive Gaea.

Promoting Innovation Through Technology

In Q1 2025, ADGM officially launched its comprehensive mobile application, enhancing the digital experience for businesses, employees, and residents. The app provides real-time updates on regulations, compliance tools, license renewals, and exclusive networking features. Furthermore, ADGM introduced a groundbreaking digital platform for real estate transactions, enabling fully virtual sales and purchase processes involving buyers, sellers, and financial institutions - a regional first that reflects ADGM's commitment to technology-driven transformation.