ADGM reports strong Q1 performance

Zawya

03-06-2025

ADGM, the international financial centre of the UAE capital, has accomplished another quarter of robust growth and increased global recognition, sustaining momentum from a record-breaking 2024.
In Q1 2025, ADGM achieved significant growth across key metrics, supported by ongoing global investor confidence, regulatory enhancements, and the successful implementation of major initiatives within its expanded jurisdiction on Al Reem Island.
Commenting on ADGM's growth momentum, 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.'
The asset management sector was a key indicator of ADGM's growth last year. During Q1 2025, assets under management (AUM) grew 33 percent 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 increased 43 percent to 2,781, from the same period a year earlier, while the number of financial services entities increased to 367, indicating a 26 percent 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 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.
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 over 29,000 individuals, a 17 percent 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 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 licence fee of AED1,000, 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.
Additionally, during Q1 2025, the ADGMA Research Centre published six research papers, with a focus on the growing impact of AI in the UAE financial sector.