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ADGM’s asset management sector leads exponential growth in Q3

Assets under management have increased by 215% from Q3 2023 to Q3 2024

Published: Thu 28 Nov 2024, 5:34 PM

Updated: Thu 28 Nov 2024, 5:35 PM

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ADGM, the international financial centre of Abu Dhabi, announced another quarter of unprecedented growth, with exceptional achievements for the third quarter of 2024 across key metrics.

The results underscore ADGM’s pivotal role in Abu Dhabi’s strategic ambition to diversify its economy and solidify its position as a premier global destination for finance, investment, and innovation. ADGM continues to align with Abu Dhabi’s economic growth, which registered a 6.6 per cent growth in non-oil GDP, in the Q2 of 2024.

Ahmed Jasim Al Zaabi, chairman of ADGM, said: “Our record-breaking achievements in Q3 exemplify the appeal of ADGM’s world-class ecosystem that brings together a stable regulatory environment, strategic location and ease of doing business. The continued influx of businesses and investors into ADGM highlights Abu Dhabi’s competitive advantage in the global financial industry and the growth of the Falcon Economy. As we pave the ‘Path to Forward’, we aim to continue building on this momentum to deliver further growth and innovation that benefits not just Abu Dhabi and the UAE, but the wider financial community.”

ADGM recorded a substantial increase of 215 per cent in total assets under management (AUM) in Q3 2024 compared to Q3 2023. This growth is also reflected in the growth of the total fund and asset managers, which reached 128, managing 156 funds, as of the end of Q3 2024.

In Q3 of 2024, ADGM saw a 33 per cent rise in the number of newly issued business licences compared to the same period last year. A total of 759 new licences were issued over the period to financial, non-financial and retail firms. The total number of operational entities within ADGM’s jurisdiction jumped to 2,251, an impressive 31 per cent year-on-year growth. The surge reflects strong demand from a diverse range of sectors, including asset management, FinTech, and professional services, within ADGM’s ecosystem.

The workforce within ADGM’s jurisdiction has been steadily increasing with more and more businesses joining its vibrant ecosystem. Since Q3 2023, there has been an influx of 4,433 workers, marking an increase of 35 per cent in the overall workforce.

ADGM’s regulatory framework, underpinned by the direct application of English Common Law, has been at the forefront of introducing new regulatory enhancements aimed at supporting the dynamic and evolving needs of its expanding ecosystem. This included introducing the new whistleblowing framework. On the digital assets side, the Financial Services Regulatory Authority (FSRA) of ADGM published a consultation paper to enhance its regulatory framework to allow the issuance of Fiat-Referenced Tokens (FRTs), a category of stablecoins that are backed by high-quality, liquid assets denominated in the same currency as the FRT and that can be liquidated rapidly with minimal adverse price effect.

Al Reem Island transition

After expanding its jurisdiction to Al Reem Island, ADGM entered the transition period where businesses are moving to ADGM licences to be regulated by its robust regulations. An incentive initiative was introduced in March to ensure a seamless transition by exempting businesses operating within the non-financial and retail sectors on Al Reem Island from paying any fees to obtain an ADGM commercial licence until 31st October 2024. This date has now been extended to 31st December 2024.

One of the major initiatives announced in the Q3 related to the Al Reem Island expansion was the significant revisions to its licensing fee schedule as part of its transitional arrangements for Al Reem Island businesses. From January 1, 2025, ADGM will implement major reductions of 50 per cent or more in fees to obtain non-financial and retail licences within its jurisdiction. Furthermore, ADGM has also signed an MoU with the Department of Municipalities and Transport (DMT) to facilitate the transfer of real estate services within ADGM’s expanded jurisdiction.



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