ABU
DHABI, UAE, Aug. 14,
2024 /PRNewswire/ -- ADGM, the international
financial centre (IFC) of the UAE's capital, continues its growth
trajectory, reporting exceptional performance in the first half of
2024. As the fastest-growing financial centre and the only
jurisdiction with the direct application of the English Common Law
in the region, ADGM's consistent achievements and strategic
initiatives are a catalyst to the growth of Abu Dhabi's financial sector growth.
The momentum of ADGM bolsters the financial sector's
contribution to Abu Dhabi's
non-oil economy, which grew to 9.7% in Q1 2024. ADGM is
increasingly becoming a global magnet for asset management firms,
outstanding talent, and investments, and is a cornerstone in
cementing Abu Dhabi's position as
the 'Capital of Capital'.
Commenting on ADGM's continued growth and strong performance,
H.E. Ahmed Jasim Al Zaabi,
Chairman of ADGM said, "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 premiere hub and a
destination of choice for global, regional and local corporations
and financial institutions. ADGM's strategies have been aligned
with Abu Dhabi's visionary
leadership to position the UAE's capital as a leading international
financial centre. Through the establishment of a thriving ecosystem
and our pursuit of innovation, excellence, and strategic
development, we are proud to have propelled towards the exceptional
success of realising the ADGM Growth Strategy 2023-2027 targets,
underscoring the accelerated growth of Abu Dhabi's financial industry."
He added, "ADGM's contribution to Abu
Dhabi's stature as a global financial powerhouse and its
sustainable economic growth will continue to capitalise on
opportunities that will further elevate Abu Dhabi's Falcon Economy to unprecedented
heights throughout this exceptionally successful year and
beyond."
Surge in Operational Entities and New Licences Reflect Strong
Growth
One of the significant increases in H1 2024 is the operational
entities rising to 2088, which includes 231 financial services
entities – representing a 31% increase compared to H1 2023. This
growth is also complemented by the number of Financial Services
Permissions (FSP) granted in the first six months, equivalent to 42
– a growth of over 90% compared to the June
2023 numbers which stood at 22 FSPs issued.
Moreover, the number of licences issued at the end of
June 2024 showcased 1,271 new
licences - 20.5% more licences than a year earlier.
Financial Services Sector Led by Asset Management Positions
Abu Dhabi as the Region's Financial Hub
In H1 of 2024, AUM within ADGM grew by 226% compared to
the same period last year. By the end of June 2024, the number of fund and asset managers
operating in ADGM reached 112, managing 141
funds.
Major names within the asset management sector that have been
granted an FSP include AXA IM,
Eiffel Investment ME, GQG Partners, SS&C Financial Services,
and Morgan Stanley. Furthermore, several entities within this space
have also received their In-Principle Approval (IPA) including
Aspen Digital, Blantyre Capital, Blue Owl, Fiera Capital, Infini
Capital, I Squared 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 set to be anchored in ADGM.
While asset management continues to lead the growth of ADGM,
additional financial services entities across banking, payment
services, wealth management and insurance sectors have also joined
the ADGM ecosystem by receiving either an FSP or an IPA. The list
of granted FSPs includes Barrenjoey, Deutsche Bank AG, Fidelis
OPCO, Laser Digital, and Paxos Issuance MENA. Prominent names that
received an IPA includes Oyster Reinsurance Brokers, and SMBC Bank
International, among others.
In May 2024, ADGM hosted the
second edition of the UAE-France Investors Meetup – an exclusive
gathering, led by His Excellency Bruno Le Maire, the French
Minister of Economy, Finance, and Industrial and Digital
Sovereignty and attended by 24 French Asset Management firms with
USD 1.6 Trillion AUM. The Meetup
represented a unique opportunity for stakeholders in both countries
to forge strategic alliances, identify new opportunities, and drive
mutual growth.
Bringing Abu Dhabi to the
World: International Roadshows Meet Unprecedented
Demand
ADGM conducted a series of roadshows in the first half of 2024,
covering multiple countries and regions including the USA, Europe,
Hong Kong and the Chinese
subcontinent.
In the USA, ADGM engaged in
over 40 bilateral discussions with hedge funds, private equity
funds, and venture capital firms at the iConnections Global Alts
2024. In Europe, ADGM held over 100 bilateral
discussions with senior leaders in the Private Banking, Wealth
Management, Private Equity, VC and Hedge Fund sectors in
France, Switzerland, and other European hubs. These
engagements occurred amidst the surge of global wealth into the
UAE.
The roadshow in China and
Hong Kong concluded with 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. It also featured the ADIO-organised
Shanghai Investment Summit, where the announcement of a new trade
forum – 'The UAE-China Summit presented by HSBC' - was announced,
set to be a sub-event of the upcoming Abu Dhabi Finance Week (ADFW)
in December.
Leading the Path for Sustainable Finance and ESG in the
Region
Following the introduction of the region's first comprehensive
Sustainable Finance framework in 2023, the Registration Authority
(RA) and the Financial Services Regulatory Authority (FSRA) of ADGM
have proposed enhancements to these regulations. A discussion paper
published in May 2024 invited input
from industry experts including fund managers, asset managers and
companies subject to the Companies Regulations 2020. These proposed
enhancements provide greater clarity around the FSRA's requirements
for ESG-labelled investment products that pursue broader
sustainability objectives than only environmental. It also fosters
demand for "green" products and services by aiming to provide
investors with confidence that the risk of greenwashing has been
addressed. Additionally, the consultation paper invites discussions
around ADGM's role in encouraging ADGM-based entities to identify
and address climate-related risks to their businesses and develop
their net-zero transition plans that support the UAE's Net Zero by
2050 Strategic Initiative.
At the Forefront of Blockchain Innovation
Following the introduction of the Distributed Ledger Technology
(DLT) Foundations Regulations, ADGM has signed strategic
partnerships with the Solana Foundation, a non-profit
organisation dedicated to decentralisation, adoption, and security
on the Solana network to enhance DLT solutions and
advance blockchain innovation. Another MoU was signed between ADGM
and Hacken, a global leader in blockchain security auditing to
collaboratively set new benchmarks for blockchain security and
compliance as well as on-chain monitoring solutions in relation to
ADGM's DLT Foundations framework.
ADGM's Workforce Booms Amid Abu Dhabi's Growing Appeal with
more than 2,500 New Jobs
Sustained investments across various sectors in Abu Dhabi have led to a strong performance in
the Global Liveability Index 2024 published by the Economist
Intelligence Unit. Abu Dhabi is
the highest-ranked city in the MENA region, these rankings
highlight Abu Dhabi's strengths in
factors such as stability, infrastructure and education.
ADGM is enhancing its attractiveness as a preferred destination
for professionals and investors. The workforce within ADGM's
Al Maryah Island has increased by
more than 2,500 individuals, compared to the end of
June 2023, and are now part of ADGM's
vibrant community.
ADGM's Al Reem Island Expansion Fuels a Residential
Surge
Since the announcement of the expansion in April 2023, Al Reem Island has seen the
introduction of 1,266 new residential units, bringing the
total to 21,335. The growth in occupancy rates has remained
steady, rising from 84.78% in March
2023 to 92.82% by the end of June 2024. With ADGM's exceptional growth, many
employees of the new companies established within its jurisdiction
are choosing Al Reem Island as their place of residence. ADGM's
jurisdiction over both Al Maryah and Al Reem Island highlights its
exceptional qualities, making it an ideal location to live, work,
and conduct business.
ADGM Pioneers Seamless Business Migration in Al Reem
Island
H1 of 2024 marks a significant
phase in ADGM's Al Reem Island transition post-expansion. A recent
initiative includes revisions to ADGM's licensing fee schedule,
aligning with the transitional arrangements to Al Reem Island.
Major reductions of 50 per cent and more to obtaining non-financial
and retail licences within ADGM's jurisdiction will take effect
from 1st January 2025.
An information centre in Shams Boutik Mall was launched and two
community events in 2024 organised to engage with the Al Reem
Island business community, provide essential updates on licensing,
registration fees, and transition processes. ADGM also introduced
an incentive for existing non-financial and retail businesses on Al
Reem Island, exempting them from paying any fees for obtaining an
ADGM commercial licence providing they apply before 31st October 2024.
ADGM Academy's Initiatives Paving Career Paths for 1020
Emiratis in H1 2024
The ADGM Academy has been contributing towards the UAE's
National Agenda by partnering with leading players from various
sectors. Since its inception ADGMA has achieved 98% employment
placement of 3629 Emirati Nationals within the Private Sector
through its National Development Agenda.
In H1 of 2024, ADGMA initiatives supported the training and
placement of 1020 Emirati nationals in professional job profiles
across various companies in the UAE.
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SOURCE Abu Dhabi Global Market