The accelerated growth of Abu Dhabi Global Market (ADGM), Abu Dhabi’s International Financial Centre (IFC), has reinforced the UAE capital as a leading financial powerhouse and a ‘falcon economy’.

A strong performance during the first half of 2023 (H1 2023) by ADGM has demonstrated significant growth across various aspects, setting a positive tone for the rest of the year.

Recent numbers showcase several investment firms and hedge funds setting up within ADGM; reaching a total of 102 asset managers operating in ADGM and managing 128 funds, contributing to Abu Dhabi’s leading position in the asset management sector.

ADGM’s assets under management (AUM) highlighted a year-on-year record growth of 35% as of June 2023.

Another plug-in to this sector was the announcement of the enhancements to the regulatory framework of the Financial Services Regulatory Authority (FSRA) of ADGM, enabling ADGM-based collective investment funds to invest in credit by originating and participating in credit facilities.

Alternative financing for private enterprises, especially within the Small and Medium-sized Enterprise (SME) sector, was one of the major focusses of introducing the Private Credit Fund framework.

The attractiveness of ADGM as a holistic financial hub, which stands as the sole jurisdiction in the region to adopt the direct application of English common law, has resulted in prominent global firms establishing themselves in ADGM in 2023, such as Brevan Howard, Ardian, Goldman Sachs, Tikehau Capital, Blackstone, SBI Capital, Asian Infrastructure Investment Bank (AIIB), Apollo, Fifth Wall, Fidera and Vibrant Capital. 

The IFC also witnessed a major addition in the first half of 2023, welcoming legendary investor Ray Dalio, who has selected Abu Dhabi as its next strategic hub to expand his family office’s global footprint.

A significant milestone in ADGM’s growth journey this year was marked by the announcement of the tenfold expansion of its geographic area, bringing Al Reem Island under its jurisdiction, in addition to the existing Al Maryah Island. It has positioned ADGM as one of the largest financial districts in the world, totalling 14.38 million sqm.

ADGM is also considered a preferred destination for heavy-weight local and regional firms such as ADQ, Chimera, G42, Gulf Capital, OneIM and Investcorp.

Other renowned international and regional players in the financial space are soon to be fully operational within ADGM, as a total of 46 firms have already been granted in-principle approval (IPA) during the first half of 2023. This is a striking increase of 119% compared to the same period last year.

Commenting on their expansion to ADGM, Alan Howard, Founder, of Brevan Howard, said: “Abu Dhabi and ADGM offer a transparent and business-friendly environment to the banking, fintech, and investment management industries. It is an important global hub with tremendous potential. We are delighted to partner with the government as it builds and develops for the future.”

Brevan Howard manages over $30 billion on behalf of institutional clients globally.

Rajeev Misra, CEO of OneIM, said, “Abu Dhabi has become an international hub for investors, employers and employees alike. This Financial Services Permission (FSP) will enable us to pursue many of the exciting opportunities we see in this region and to propel the firm into the next stage of its journey.” – TradeArabia News Service