ADGM reports 33 percent AUM growth in Q1 2025 highlighting strong market confidence

Economy ME

03-06-2025

ADGM has achieved another quarter of strong growth and heightened global recognition, maintaining momentum from a record-breaking 2024.
In Q1 2025, ADGM saw significant growth across key metrics, driven by ongoing global investor confidence, regulatory enhancements, and the successful implementation of major initiatives within its expanded jurisdiction on Al Reem Island. ADGM's focus and strategic initiatives to strengthen its standing as a leading international financial centre reaffirmed Abu Dhabi's position as a global financial powerhouse and a preferred destination for regional and international entities.
His Excellency Ahmed Jasim Al Zaabi, chairman of ADGM, stated: '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.'
Asset management sector notable growth
Looking ahead, ADGM expects continued growth in the market, supported by increasing interest from international firms across Europe and Asia. ADGM anticipates further strong growth as it boosts its position within these dynamic financial markets.
The asset management sector was a key indicator of ADGM's growth last year. During Q1 2025, assets under management (AUM) grew by 33 percent compared to Q1 2024. At the end of Q1 2025, 119 asset and fund managers were managing a total of 184 funds from ADGM.
As the only jurisdiction in the region to adopt the direct application of English common law, ADGM's transparency, stability, legal certainty, and familiarity with its established regulatory framework have been crucial drivers for the growing number of global and regional entities setting up operations. As of Q1 2025, the total number of operational entities in ADGM increased by 43 percent to 2,781, compared to the same period a year earlier, while the number of financial services entities rose to 367, indicating a 26 percent growth from Q1 2024.
ADGM continued to attract a diverse array of global firms seeking to leverage Abu Dhabi's financial and regulatory infrastructure. The number of new licenses issued grew in Q1 2025, representing an increase of 67 percent from Q1 2024. Notable firms establishing a presence during this period include Skadden, Investindustrial, NewVest, Arcapita, Polen Capital, Seviora, Olive Gaea, TON, and Aquila Group. These firms span a range of sectors and position ADGM as the preferred premier international hub for asset management, sustainable finance, legal services, and digital innovation.
Focus on human capital drives workforce growth
One of ADGM's strategic focuses under the Capital of Capital concept has been human capital. This focus has led to the workforce on Al Maryah Island surging to more than 29,000 individuals, marking a 17 percent growth compared to the same quarter last year. A total of 3,509 new ADGM work permits have been issued to businesses establishing on Al Reem Island, indicating continued expansion across the two islands.
In line with the human capital focus, ADGM also introduced its new Employment Regulations, aimed at enhancing workplace protections while maintaining 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.
ADGM's international engagement efforts remained robust throughout Q1 2025, further underscoring its role as a global bridge for the growth of Abu Dhabi's financial sector.
In January, ADGM returned to iConnections Global Alts Miami to deepen relationships with hedge funds, private equity firms, and venture capital leaders. The ADGM delegation held bilateral meetings in New York and Washington, participating in a headline panel discussion titled, Abu Dhabi: The Capital of Capital, showcasing the emirate's strategic access to $1.7 trillion in sovereign wealth capital and its investor-friendly ecosystem.
In February, ADGM joined
the Abu Dhabi Department of Economic Development's (ADDED)
high-level delegation to China, aimed at fortifying bilateral economic ties between the two countries. With UAE-China trade projected to reach $200 billion by 2030, ADGM is strengthening Abu Dhabi's role as a vital gateway for Chinese capital into the region.
Read more: ADGM attracts over 10,000 global participants to its second Virtual Career Fair featuring 40 leading businesses
Expansion to Al Reem Island yields strong results
Moreover, at the start of April 2025, a high-level delegation from ADGM traveled to Japan, where they conducted nearly 30 strategic bilateral meetings with leading financial institutions. The discussions focused on key sectors, including private banking, wealth management, and family businesses, reflecting Japanese companies' commitment to fostering international partnerships and expanding their presence in the region.
During Q1 2025, ADGM completed its jurisdictional expansion to Al Reem Island, yielding strong results. By Q1 2025, more than 600 new businesses had established operations on Al Reem Island, and over 500 existing Al Reem-based companies had migrated to an ADGM license. Currently, a total of 1,100 new entities operate within ADGM's expanded jurisdiction.
In January, ADGM introduced a revised fee schedule, reducing commercial license costs by 50 percent or more for non-financial and retail businesses, further supporting SME growth and diversification. The new structure simplifies the previous tiered model and sets a flat license fee of AED1,000, making it significantly more accessible for entrepreneurs and SMEs to establish and scale their operations within ADGM's jurisdiction.
Reinforcing its position as a regulatory pioneer in digital assets, ADGM in March 2025 signed an MoU with Chainlink, the industry standard for on-chain finance. The partnership will facilitate the development of compliant tokenization frameworks by leveraging Chainlink's infrastructure and expertise.
ADGM welcomed Stacks Asia and Bitgrit to its ecosystem in Q1 2025, which will utilize ADGM's world-leading Distributed Ledger Technology (DLT) Foundations framework. These efforts are enhancing Abu Dhabi's profile as a rising blockchain innovation hub on both regional and global stages.
800 jobs created for UAE nationals
The Abu Dhabi Sustainable Finance Declaration now has 170 signatories, including banks, asset managers, investment funds, and small and medium-sized enterprises (SMEs). Launched in 2019 under the patronage of national financial regulators and ministries, the initiative continues to promote the integration of ESG principles into the financial sector and attract green investment to the region.
Recent signatories include Aquila Capital, Century Financial, Oryx Global Partners, PricewaterhouseCoopers (PwC), and Olive Gaea.
ADGM officially launched its all-in-one mobile application to enhance the digital experience for businesses, employees, and residents in Q1 2025. The app provides real-time regulatory updates, compliance tools, license renewals, and exclusive networking features.
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 specialized tracks. These efforts were supported by 23 internationally recognized 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 programs aligned with the national agenda.
During Q1 2025, the ADGM Research Centre published six research papers, focusing on the growing impact of AI in the UAE financial sector. These publications highlight AI's central role in advancing the sector's development and innovation.