Abu Dhabi's ADGM sees major Q1 2025 growth as global firms, fund managers flock to UAE

Arabian Business

2 days ago

Abu Dhabi's ADGM reported a 43 per cent growth in operational entities and 33 per cent rise in assets under management as the financial centre expands its global footprint.
ADGM kicked off 2025 with exceptional momentum — cementing its position as one of the world's fastest-growing and most dynamic financial jurisdictions.
It means another quarter of robust growth and increased global recognition, sustaining momentum from a record-breaking 2024.
ADGM Abu Dhabi
Ahmed Jasim Al Zaabi, Chairman of ADGM, said: 'ADGM's Q1 2025 performance marks the beginning of another landmark year. This is not just a reflection of ADGM's capabilities to deliver sustained growth, but also the trust it has gained among global and regional institutions, boosting Abu Dhabi's status as a global financial and innovation hub.
'As the world's safest and most dynamic jurisdiction for asset and wealth management, ADGM continues to expand and diversify with purpose, welcoming leading firms, deepening international partnerships, and driving digital and sustainable transformation across sectors.
'ADGM remains committed to contributing towards capital formation and innovation in alignment with the UAE's long-term economic vision.'
In Q1 2025, ADGM saw:
43 per cent increase in operational entities (now totalling 2,781)
33 per cent growth in assets under management (AUM)
67 per cent surge in newly issued licences
17 per cent workforce growth on Al Maryah Island
1,100+ businesses established on expanded Al Reem Island jurisdiction
The asset management sector was a key indicator of ADGM's growth last year. During Q1 2025, assets under management (AUM) grew 33 per cent compared to Q1 2024.
At the end of Q1 2025, 119 asset and fund managers managed a total of 184 funds out of ADGM.
As of Q1 2025, the total number of operational entities in ADGM in Abu Dhabi increased 43 per cent to 2,781, from the same period a year earlier, while the number of financial services entities increased to 367, indicating a 26 per cent growth from Q1 2024.
ADGM continued to attract a diverse set of global firms seeking to tap Abu Dhabi's unique financial and regulatory infrastructure.
The number of new licences grew in Q1 2025, representing an increase of 67 per cent from Q1 2024.
Notable firms establishing a presence during this period include:
Skadden
Investindustrial
NewVest
Arcapita
Polen Capital
Seviora
Olive Gaea
TON
Aquila Group
One of ADGM's strategic focuses under the 'Capital of Capital' concept has been human capital.
Efforts towards this have resulted in the workforce on Al Maryah Island surging to more than 29,000 individuals, a 17 per cent growth compared to the same quarter last year.
Furthermore, a total of 3,509 new ADGM work permits have been issued to businesses establishing on Al Reem Island.
In line with its focus on human capital, ADGM also introduced new Employment Regulations, aimed at enhancing workplace protections while preserving business agility.
The updated regulations strengthen ADGM's appeal as a global talent hub and reinforce its position as a forward-looking jurisdiction committed to inclusive, sustainable economic growth.
During Q1 2025, ADGM completed its jurisdictional expansion to Al Reem Island, which delivered strong results.
By Q1 2025, over 600 new businesses had set up on Al Reem Island, and more than 500 existing Al Reem-based companies had migrated to an ADGM licence. Currently, a total of 1,100 new entities operate within ADGM's expanded jurisdiction.
In January, ADGM introduced a revised fee schedule, reducing commercial licence costs by 50 per cent or more for non-financial and retail businesses, further supporting SME growth and diversification in Abu Dhabi.
The new structure simplifies the previous tiered model and sets a flat licence fee of AED1,000 ($272), making it significantly more accessible for entrepreneurs and SMEs to establish and scale their operations within ADGM's jurisdiction.
In March, ADGM signed an MoU with Chainlink, the industry standard for onchain finance. The partnership will enable the development of compliant tokenisation frameworks by leveraging Chainlink's infrastructure and expertise.
Additionally, ADGM welcomed Stacks Asia and Bitgrit to its ecosystem in Q1 2025, which will leverage ADGM's world-leading Distributed Ledger Technology (DLT) Foundations framework.
ADGM officially launched its all-in-one mobile application to enhance the digital experience for businesses, employees, and residents in Q1 2025.
It also introduced a groundbreaking digital platform for real estate transactions, enabling fully virtual sell-and-purchase workflows involving buyers, sellers, and financial institutions—a regional first that reflects ADGM's commitment to tech-driven transformation.
During Q1 2025, ADGM Academy successfully created 800 job placement opportunities for UAE nationals across nine specialised tracks.
These efforts were supported by 23 internationally recognised upskilling and reskilling certifications.
ADGM Academy signed two strategic agreements, including one with Arab Youth to collaborate on empowering Arab youth and driving innovation in the technology sector.
The Academy also partnered with the Federal Tax Authority to deliver targeted training programmes aligned with the national agenda.