ADGM draws more fund managers with Q3 assets under management up 215%

The financial hub sees rapid growth with new entrants boosting managed wealth significantly during the quarter

ADGM prepares to host Abu Dhabi Finance Week next month, expected to attract more than 20,000 delegates. Khushnum Bhandari / The National

Abu Dhabi's ADGM has seen a rise in asset and fund managers, with assets under management in the financial hub rising by 215 per cent annually in the third quarter of 2024.

The number of asset and fund managers operating within the jurisdiction reached 128, managing 156 funds by the end of the September quarter. Some of the new entrants during the last quarter include PGIM, a $1.33 trillion US asset manager; Elysium Management; Gemcorp Capital; Stonepeak, a US-based alternative investment company with $71.2 billion of assets under management; and Nuveen, which manages $1.2 trillion of assets.

This month, BlackRock, the world's biggest asset manager, also said it received a commercial licence to operate in Abu Dhabi, as the UAE capital emerges as a global hotspot for finance. New York-based BlackRock, which has nearly $11.5 trillion in assets under management, also plans to obtain regulatory authorisation to operate at ADGM, it said.

“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,” said Ahmed Al Zaabi, chairman of ADGM.

Mr Al Zaabi attributed the growth to its “stable regulatory environment, strategic location and ease of doing business”, emphasising ADGM’s global appeal for institutional investors and businesses.

In the July-September period, newly issued business licences in ADGM increased by 33 per cent year-on-year to 759, spanning financial, non-financial and retail firms.

The continued influx of businesses and investors into ADGM highlights Abu Dhabi’s competitive advantage in the global financial industry

Ahmed Al Zaabi,
chairman of ADGM

The total number of operational entities within ADGM’s jurisdiction increased to 2,251, up 31 per cent on an annual basis, reflecting strong demand from sectors like asset management, financial technology and professional services.

Since the third quarter of last year, there has been an influx of 4,433 workers, marking an increase of 35 per cent in the overall workforce within the ADGM jurisdiction.

The financial centre’s growth aligns with Abu Dhabi’s broader economic diversification goals, with the emirate’s economy registering a 4.1 per cent annualised growth in the second quarter of this year.

Growth was driven by the emirate’s non-oil sector, which expanded by 6.6 per cent during the period, reaching a record Dh164.2 billion ($44.7 billion). The non-oil sector's share of the emirate's economy rose to more than 55.2 per cent, its highest since late 2014.

Abu Dhabi, which accounts for the bulk of the UAE's oil and gas production, is striving to diversify its economy away from hydrocarbons and expand its non-oil industrial base across sectors such as hospitality, real estate, infrastructure and technology.

Abu Dhabi’s non-oil sector jumped 6.6 per cent yearly in the second quarter of 2024, reaching $44.7 billion. Photo: ADX

This growth comes as ADGM continues its expansion to Al Reem Island, introduces regulatory enhancements, and prepares to host Abu Dhabi Finance Week next month, expected to attract more than 20,000 delegates.

In March, ADGM also announced an initiative to support the transition, 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 October 31. This date is now extended to December 31.

ADGM has also signed an initial agreement with the Department of Municipalities and Transport to enable the transfer of real estate services within centre’s expanded jurisdiction.