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ABU DHABI, UAE, May 21, 2024 /PRNewswire/ -- ADGM, the international financial centre (IFC) of the UAE's capital, continues its solid performance paving the way for another strong year as the fastest growing financial centre in the region, with a record-breaking start during the first quarter of 2024 marked by an increase of 211% in Assets Under Management (AUM) compared to the first quarter of the year 2023.
The growth trajectory of ADGM in Assets Under Management, coupled with a significant increase during Q1 2024 in the number of operational entities, the size of workforce and other elements of the IFC ecosystem, underscore the concerted efforts and strategic initiatives undertaken to strengthen its standing as a leading international financial centre, and reaffirms Abu Dhabi's position as a global financial powerhouse and a destination of choice for regional and global entities.
Commenting on ADGM's continued growth and strong performance, H.E. Ahmed Jasim Al Zaabi, Chairman of ADGM said, "Abu Dhabi once again affirms its position as the leading financial powerhouse of the MEASA region. ADGM's unwavering commitment to excellence, demonstrated through its initiatives and achievements, continues to drive remarkable growth, attracting talent, businesses, and quality investments from across the globe. This year holds the promise of even greater growth for ADGM and its ecosystem, marking a significant stride towards achieving Abu Dhabi's economic goals and ambitions."
Abu Dhabi: The Region's Premier Financial Hub for Asset Management
ADGM's asset management sector began 2024 with vigour, witnessing an unprecedented influx of global asset managers establishing operations in the IFC, and pushing the surge in the size of Assets Under Management within ADGM during the first three months of the year 2024 to unprecedented figures reaching a growth of 211% compared to the same period of 2023. By the end of March 2024, the number of fund and asset managers operating in ADGM reached 107, managing 137 funds.
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 ongoing increase in the number and diversity of prominent regional and global firms establishing in ADGM. By the end of March 2024, the total number of operational entities in ADGM increased by 30% compared to the same period last year, to reach 1950 including 291 financial services entities.
Abu Dhabi's Liveability Sparks ADGM's Workforce Surge
ADGM's workforce has grown to over 25 thousand individuals, working on Al Maryah Island, as more talented individuals choose Abu Dhabi as their destination to live, work, and thrive.
Abu Dhabi's appeal extends beyond its business opportunities, it has been ranked as the best and safest city to live in the region offering a high quality of life with world-class amenities and infrastructure. Out of Abu Dhabi, ADGM is further enhancing its attractiveness as a preferred destination for professionals and investors alike.
In its 2024 Outlook, a comprehensive survey conducted among the ADGM community provides insight into the promising prospects for ADGM as a preferred destination. A total of 70.81% of companies anticipate expanding their workforce in ADGM during 2024, with 29.93% expecting significant increases and 40.88% planning moderate growth in staffing. This collective optimism reflects Abu Dhabi's robust economic health and the strong confidence within the business community in the conducive business environment of the IFC.
Managing a Seamless Migration of Reem Island Businesses
2024 is the year of transitioning businesses on Al Reem Island for ADGM, which is progressing smoothly and is well underway with several initiatives being announced and implemented during Q1 2024 to support the businesses migration process.
In addition to a series of awareness sessions and focus group meetings organised by the RA of ADGM for representatives of businesses on Al Reem Island, ADGM launched its information centre in Shams Boutik Mall, in Al Reem Island.
The launch of the centre was followed by ADGM's first community event on Al Reem Island. The community event provided a platform for ADGM to unveil a new incentive initiative tailored exclusively for businesses based on Al Reem Island, operating in non-financial and retail sectors. Under this incentive initiative, eligible businesses on the island will be relieved from any fees associated with acquiring an ADGM commercial licence until October 31, 2024.