The UAE capital’s international financial center saw its AUM grow by 226 percent in H1 2024
Abu Dhabi Global Market (ADGM), the international financial center (IFC) of the UAE capital, reported exponential growth in the first half of 2024.
A key catalyst in Abu Dhabi’s economic expansion, ADGM continues to drive growth across its business, leading to a fruitful first half (H1) of 2024. By the end of H1, ADGM’s AUM had grown by 226 percent compared to the first half of last year. For this period, the number of funds and asset managers operating in ADGM reached 112, managing 141 funds.
“ADGM is experiencing unprecedented demand from major global asset managers in the hedge fund, private equity, and venture capital space seeking to establish a presence in Abu Dhabi,” Arvind Ramamurthy, chief of market development at ADGM, shared in an interview with Economy Middle East.
“With many major international players within the asset management sector choosing ADGM as their destination within the region, we have become the fastest-growing international financial center of the region and achieved this goal in 2024,” he remarked.
Unprecedented expansion
In the first six months of 2024, ADGM welcomed and licensed several new firms, highlighting its appeal as a financial center and a business hub for companies seeking to establish a presence here in the UAE and beyond.
The total number of entities that received their FSP (Financial Services Permission) in H1 is 42 — a growth of over 90 percent compared to the June 2023 numbers which stood at 22 FSPs issued. Moreover, the number of new licenses issued at the end of June 2024, showcased a total of 1271 — 20.5 percent more licenses issued this year by ADGM.
“We have a strong pipeline of entities within the asset management sector, including asset and wealth management companies and advisor and arranger firms, are currently in the pipeline,” Ramamurthy revealed.
Among the firms that have been fully licensed this year are AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley. Meanwhile, Aspen Digital, Blantyre Capital, Blue Owl, Fiera Capital, Infini Capital, I Squared Capital, Ninety One Gulf Capital, Peninsula, Token Bay Capital, Triton, and Vizier received their In-Principle Approval (IPA).
“Overall, the growth numbers for operational entities reflect a 31 percent surge in H1 compared to the same period last year. The total number of operational entities currently within is 2088, including 231 financial services entities,” Ramamurthy said.
ADGM’s expansion isn’t just about the increase in the number of entities anchoring their presence in the IFC’s jurisdiction. In H1 2024, the workforce also grew, with more than 2500 new talented individuals joining ADGM’s ecosystem in H1 2024.
Strategic global initiative
ADGM recently held roadshows in several countries where officials conducted strategic bilateral discussions with leaders in private banking, hedge funds, and wealth management.
According to Ramamurthy, “Bilateral meetings with leaders in private banking, hedge funds, wealth management, and asset management are part of ADGM’s overall growth strategy. These sectors and sub-sectors are a focus for ADGM to further strengthen Abu Dhabi’s position as the ‘Capital of Capital’ globally and build on its successes.”
In the US, ADGM engaged in over 40 bilateral discussions with hedge funds, private equity funds, and venture capital firms at the iConnections Global Alts 2024. Meanwhile, ADGM held over 100 bilateral discussions with senior leaders in Private Banking, Wealth Management, Private Equity, VC, and Hedge Fund sectors in France, Switzerland, and other European hubs.
In Asia, the roadshow in China and Hong Kong concluded successfully, with ADGM holding strategic meetings involving 75 entities. Discussions focused on cross-border regulatory cooperation with the Hong Kong Monetary Authority, expansion plans for several Hong Kong and Chinese firms in Abu Dhabi, and the enhancement of liquidity strategies in both regions.
“The global entities we spoke with during the bilateral meetings in the US, Europe, and China recognized the growing value proposition of Abu Dhabi and its IFC for funds and elite wealth clients looking to expand in the region,” Ramamurthy said.
Sustaining the momentum
In the remaining months of 2024, ADGM is keen to sustain the momentum it has gained so far.
“ADGM remains committed to driving growth and innovation within the financial sector. Achieving the targets within ADGM’s Growth Strategy in the first half of 2024 has opened doors to the opportunities that we were initially targeting to explore in 2027,” Ramamurthy told Economy Middle East.
One of the key highlights toward the end of this year is the highly anticipated Abu Dhabi Finance Week (ADFW).
This year, the strategic theme is ‘Welcome to the Capital of Capital’. It will aim to unravel the key facets of Abu Dhabi’s strength and value proposition, covering the evolution and rise of its role as the region’s prominent financial hub and destination of choice for top international financial institutions. It will seek to explore the opportunities created when monetary capital is combined with top-tier human capital, technological capabilities and groundbreaking innovations that are emerging in science, technology, engineering, and creativity.
Commenting on ADFW’s pivotal role, Ramamurthy said, “By bringing together some of the most prominent global thought leaders, financial experts, and industry stakeholders ADFW will further solidify Abu Dhabi and ADGM’s position as a financial powerhouse.”
These developments, alongside our continued efforts to enhance our regulatory framework and attract leading global institutions, ensure that the remainder of 2024 will be marked by significant milestones that reinforce ADGM’s role as a leading international financial center,” Ramamurthy concluded.
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