Abu Dhabi's ADGM attracts more firms in first quarter with assets under management up 33%

Abu Dhabi's ADGM recorded a rise in the number of firms in the first quarter of this year, with assets under management also increasing by 33 per cent annually, as the financial hub continues to attract global businesses.

The total number of operational entities in ADGM increased 43 per cent annually to 2,781 in the first three months of this year, it said in a statement on Tuesday. At the end of last year, the financial zone had 2,381 operational entities.

Meanwhile, the number of financial services entities increased by 26 per cent year-on-year in the first quarter to 367. At the end of March, ADGM had 144 asset and fund managers, up from 134 at the end of last year. The number of funds managed out of ADGM during the same period rose to 184, up from 166 funds at the end of 2024.

The number of new licences also rose by 67 per cent annually, with firms establishing a presence during the three-month period including Skadden, Investindustrial, NewVest, Arcapita, Polen Capital, Seviora, Olive Gaea, TON and Aquila Group.

In February, German asset manager Patrizia, which has about €55 billion ($57.7 billion) in assets under management, was also granted regulatory approval to start operating at ADGM. It will be Patrizia's first office in the Middle East and 26th globally.

Last year, ADGM also welcomed trillion-dollar asset managers including New York-based BlackRock; PGIM, the global asset management business of Prudential Financial; and Chicago investment firm Nuveen.

Growth has been “supported by continuing global investor confidence, regulatory enhancements, and the successful implementation of major initiatives within its expanded jurisdiction on Al Reem Island”, ADGM said.

“ADGM continues to expand and diversify with purpose, welcoming leading firms, deepening international partnerships, and driving digital and sustainable transformation across sectors,” said Ahmed Al Zaabi, chairman of ADGM.

Established in 2015 on Al Maryah Island, ADGM has recorded rapid growth as Abu Dhabi enhances its non-oil economy and focuses on attracting more international companies and investors.

Abu Dhabi's economy expanded by 3.8 per cent annually last year to reach an all-time high value of Dh1.2 trillion ($326.7 billion) on a boost from the non-oil sector.

The emirate's non-oil sector grew 6.2 per cent during the 12-month period to Dh644.3 billion, marking its highest annual contribution yet to the total gross domestic product at 54.7 per cent, state news agency Wam reported in March.

ADGM has also been growing its jurisdiction to cater to increasing demand, and in the first quarter, completed its expansion to Al Reem Island. More than 600 new businesses have set up on Al Reem Island, and more than 500 existing companies have migrated to an ADGM licence, it said.

Currently, a total of 1,100 new entities operate within ADGM’s expanded jurisdiction.

In terms of workforce, a total of 3,509 new ADGM work permits have been issued to businesses establishing on Al Reem Island. The workforce on Al Maryah Island also rose 17 per cent annually in the first quarter to more than 29,000 individuals.

In February, ADGM announced new employment regulations, which took effect in April, that offer people working remotely for companies in the financial zone the same rights as office-based staff, such as maternity leave, sick pay and end-of-service payments.

In January, ADGM also introduced a revised fee schedule, reducing commercial licence costs by 50 per cent or more for non-financial and retail businesses. The new structure, aimed at supporting small businesses, sets a flat licence fee of Dh1,000.

Looking ahead, ADGM said it “expects continued growth in the market, reinforced by an increasing interest from international firms across Europe and Asia”.