ADGM Sees 215% Surge in Assets: A Q3 2024 Financial Phenomenon!
As of Q3 2024, a remarkable total of 128 asset and fund managers are on the scene in ADGM, expertly managing 156 funds!
Abu Dhabi Global Market (ADGM) is experiencing a surge of unparalleled success, with the third quarter of 2024 showcasing phenomenal milestones across the board.
This impressive growth highlights ADGM’s crucial role in Abu Dhabi’s strategic vision to diversify its economy, positioning the region as a premier global hub for finance, investment, and cutting-edge innovation. With a robust economic landscape, Abu Dhabi recorded a notable 6.6% growth in non-oil GDP in Q2 2024, affirming its vibrant market dynamics.
Leading the Charge in Asset Management
In a stunning display of growth, ADGM reported a whopping 215% increase in total assets under management (AUM) in Q3 2024 compared to the same period last year. This meteoric rise cements ADGM’s status as a premier asset management hub in the MENA region, drawing in top-tier asset managers, investment funds, and private equity firms. The impressive rise brings the total number of asset and fund managers to 128, overseeing an expansive 156 funds.
New players making waves this quarter include PGIM, Nuveen, and Elysium Management. PGIM alone boasts a staggering $1.33 trillion in assets under management, while Nuveen follows closely with $1.2 trillion. Also joining the ranks are Stonepeak, a leader in alternative investments focusing on infrastructure and real assets, along with Gemcorp Capital.
His Excellency Ahmed Jasim Al Zaabi, chairman of ADGM, stated: “Our record-breaking achievements in Q3 exemplify the appeal of ADGM’s world-class ecosystem, which combines a stable regulatory environment, strategic location, and ease of doing business. The continued influx of businesses and investors into ADGM demonstrates Abu Dhabi’s competitive advantage in the global financial landscape and the evolution of the Falcon Economy. As we embark on the ‘Path to Forward,’ we’re committed to sustaining this momentum, delivering further growth and innovation that benefits not just Abu Dhabi and the UAE, but the global financial community.”
Registration Boom
Q3 2024 witnessed a remarkable 33% increase in newly issued business licenses compared to last year, with a total of 759 licenses granted to financial, non-financial, and retail firms. This surge propelled the total number of operational entities within ADGM’s jurisdiction to an impressive 2,251, marking a 31% year-on-year growth! The diverse sectors thriving within ADGM’s ecosystem, including asset management, FinTech, and professional services, are clearly responding to strong market demand.
The workforce within ADGM is also on the rise, with an influx of 4,433 new workers since Q3 2023—an astonishing 35% boost in the overall workforce!
Read: ADGM FSRA publishes IT Risk Management Guidance
Innovative Regulatory Frameworks
ADGM is leading the charge with a forward-thinking regulatory framework that supports the evolving needs of its dynamic ecosystem. Recent enhancements include the introduction of a whistleblowing framework, underscoring ADGM’s unwavering commitment to transparency, accountability, and market integrity. Additionally, the Financial Services Regulatory Authority (FSRA) of ADGM has published a consultation paper aimed at refining its regulatory framework to facilitate the issuance of fiat-referenced tokens (FRTs)—a game-changing category of stablecoins.
Seamless Transition to Al Reem Island
Following its jurisdictional expansion to Al Reem Island, ADGM has initiated a smooth transition period allowing businesses to migrate to ADGM licenses and benefit from its robust regulations. An incentive program launched in March provides fee exemptions for non-financial and retail sector businesses until December 31, 2024, ensuring a seamless move.
Connecting Globally
In its quest to enhance global connectivity and attract investments, ADGM has embarked on a series of international roadshows. Notably, high-level engagements in China and Hong Kong celebrated 40 years of fruitful bilateral relations between the UAE and China. ADGM’s delegations are also actively connecting with financial leaders across global financial centers including Singapore, London, Washington DC, and New York. The total number of bilateral discussions has surpassed an impressive 150 across key international markets.
Read: ADGM strengthens global ties with U.S. roadshows
Looking Ahead: Abu Dhabi Finance Week
As ADGM approaches the close of the 2024 financial year, excitement is building for the third edition of its flagship event series, Abu Dhabi Finance Week (ADFW), set to take place in December. Anticipating over 20,000 delegates, this event promises to explore the theme ‘Welcome to the Capital of Capital’—an unmissable opportunity for networking and insights!
