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Abu Dhabi Global Market emerges as the region’s fastest-growing international financial centre

Assets under management grew by 35% with 102 asset managers operating in ADGM

Abu Dhabi Global Market (ADGM), has declared 2023 as a year of success for the international financial centre of the UAE’s capital, highlighting its performance as the fastest-growing financial centre in the region for two consecutive years, as well as Abu Dhabi’s rise as a globally recognised financial hub.

ADGM had a strong start to 2023, building on the significant growth demonstrated in 2022 along with a positive outlook for the year ahead. This was underscored by the 2023 quarterly and half-yearly growth numbers across every aspect, setting it up to become another record-breaking year in ADGM’s 8-year operational journey.

Following its growth trend from 2022, ADGM’s asset management sector started strong in 2023 and ended even stronger as it continued to experience an unprecedented influx of global asset managers establishing their operations in the IFC.

Assets Under Management (AUM) as of December 31, 2023, showcased a year-on-year increase of 35 per cent when compared to the year-end number reported in 2022. Numerous investment firms and hedge funds were set up within ADGM as recorded in the year-end data; with the total asset managers operating in ADGM reaching 102 who are managing 141 funds. A major facilitator for these surged figures was the announcement of enhancements to the ADGM Financial Services Regulatory Authority’s (FSRA’s) regulatory framework that enabled ADGM-based collective investment funds to invest in credit by originating and participating in credit facilities through its private credit fund framework.

Emerging as a preferred destination for businesses across borders, ADGM has witnessed major global and regional giants within the sector establishing themselves in 2023. Operational entities jumped to 1,825, a growth of 32 per cent against 2022 figures (1,378 operational entities in 2022). Some of the global names worth highlighting include Brevan Howard, Ardian, Goldman Sachs, Tikehau Capital, Blackstone, SBI Capital, Asian Infrastructure Investment Bank (AIIB), Apollo, Fifth Wall, Fidera and Vibrant Capital. These also include renowned local and regional entities such as ADQ, Chimera, G42, Gulf Capital, OneIM and Investcorp to name a few. Furthermore, there are over 125 firms that are already in the pipeline to be registered with ADGM.

The end of 2023 numbers also reflect 88 financial institutions and two exchanges that have received in-principle approvals (IPA) from ADGM. Of those IPAs, a significant number are part of the asset management sector. Due to the number of asset management firms moving to ADGM, leading asset and fund service providers such as fund accounting and fund administration service providers are banking on the opportunity ADGM is unlocking.

This growth is substantiated by the increase in ADGM’s workforce which has climbed to 13,394 – a 22 per cent rise in one year. Several global financial institutions and investment banks based within ADGM such as JP Morgan and BNP Paribas among others are expanding their service and product offerings as well as growing their teams to improve capabilities, standing as a testament to the talent growth being achieved within the IFC.

Ahmed Al Jasim Al Zaabi, Chairman of ADGM, said: “A year into Abu Dhabi’s Falcon economy and a year of exceptional growth for Abu Dhabi Global Market. When we think of these factors together, it leads us to the realisation of what consistency, persistence and alignment to economic goals can achieve. In merely eight years, we have become one of the world’s largest financial districts and the fastest-growing international financial centre in the region, for two years consecutively. Enhancing Abu Dhabi’s international standing as the ‘capital of capital’, ADGM has truly realised the capital city’s potential for the financial landscape and strategically unlocked opportunities within underlying sectors. The growth that we are witnessing today is the realisation of the visions of the UAE’s leadership. We remain strongly positive as we move forward into 2024.”

ADGM’s alignment with Abu Dhabi’s goals to drive the engine of sustainable economic diversification with the growing financial sector and ADGM Growth Strategy 2023-2027 has shaped the overall global positioning of the IFC. It is in the final stages of declaring its outlook for 2024 based on the visions of the leadership and strategy devised to deliver another milestone year.