Abu Dhabi Global Market company registrations surge 31% in first half

Financial centre issued 1,271 new licences in the six-month period, with assets under management increasing by 226%

Established in 2015, ADGM is one of the world's fastest-growing financial districts. Victor Besa / The National

Abu Dhabi Global Market registered 231 financial services companies in the first half of 2024, up 31 per cent over the same period last year, as the UAE capital's financial centre continues to provide development initiatives and ease of doing business.

Companies setting up base in ADGM reached 2,088 at the end of June, it said on Wednesday.

Assets under management, meanwhile, increased by 226 per cent in the six-month period compared with the first half of last year, with 112 fund and asset managers overseeing 141 funds by the end of June 2024.

ADGM also issued 1,271 new licences in the first half of the year, up 20.5 per cent on an annual basis.

“As a catalyst for Abu Dhabi’s financial sector, ADGM’s remarkable growth in the first half of 2024 fosters Abu Dhabi's position as a premier hub and a destination of choice for global, regional and local corporations and financial institutions,” said Ahmed Al Zaabi, ADGM’s chairman.

The growth in the number of operational entities was bolstered by the number of Financial Services Permissions (FSP) granted in the first six months, equivalent to 42 – an increase of more than 90 per cent, ADGM said.

Some of the major names that have been granted an FSP include AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley.

Many entities within this space also received their in-principle approval. These include Aspen Digital, Blantyre Capital, Blue Owl, Fiera Capital, Infini Capital, Ninety One Gulf Capital, Peninsula, Token Bay Capital, Triton and Vizier.

The pipeline of entities within the asset management sector remains strong across hedge funds, private equity, institutional funds and venture capital firms, ADGM said.

In a bid to expand its international positioning, ADGM also conducted a series of roadshows in the first half of 2024, covering various countries and regions including the US, Europe, Hong Kong and the Chinese subcontinent.

In the US, ADGM engaged in more than 40 bilateral discussions with hedge funds, private equity funds, and VCs. In Europe, ADGM held over 100 bilateral discussions with leaders in the private banking, wealth management, private equity, hedge fund and VC sectors in France, Switzerland, and other European hubs.

In May, it also hosted the second UAE-France investors' meetup that was attended by 24 French asset management firms with $1.6 trillion AUM.

Its roadshow in China and Hong Kong focused on improving cross-border regulatory co-operation with the Hong Kong Monetary Authority and expansion plans for several Hong Kong and Chinese firms in Abu Dhabi.

Established in 2015, ADGM, one of the world's fastest-growing financial districts, has recorded rapid growth as the UAE capital boosts its non-oil economy and focuses on attracting more international companies and investors.

Last month, ADGM announced to cut commercial registration licence fees for certain categories while raising them for others, as part of its transitional strategy after the financial district expanded to include Reem Island under its jurisdiction.

The revised fee structure, which will come into effect on January 1, 2025, will see new registrations within the non-financial category halved to $5,000, with annual licence renewal fees cut to $5,000 from $8,000.

The registration fee for the retail category has been slashed by more than 66 per cent to $2,000, with renewals also halved to $2,000. In the financial category, fees have increased to $20,000 from $15,000, with renewals for an annual ADGM licence rising to $15,000 from $13,000.

In May last year, as part of efforts to further support its growth, the ADGM revealed a tenfold expansion plan by adding Reem Island into its jurisdiction.

After the introduction of the Distributed Ledger Technology (DLT) Foundations Regulations, ADGM also signed strategic partnerships with a couple of organisations in 2024. It partnered with Solana Foundation to boost DLT solutions, and Hacken to enhance blockchain security.