ADGM Emerges as the MENA Region’s Largest International Financial Centre in H1 2025

Abu Dhabi Global Market (ADGM) has reinforced its position as the largest and fastest-growing international financial centre (IFC) in the Middle East and North Africa (MENA) region, marking a record-breaking first half of 2025. With over 11,000 active licences and a significant rise in assets under management (AUM), ADGM continues to strengthen Abu Dhabi's role as a global financial and investment hub.

Growth Highlights

By the end of June 2025, ADGM had reached 11,128 active licences, following the issuance of nearly 1,870 new licences during the first six months of the year, the highest half-year figure since its establishment. This surge reflects the continued confidence of global and regional institutions in Abu Dhabi's financial ecosystem, which combines robust governance, a progressive regulatory framework, and direct application of English Common Law.

The total number of operational entities in ADGM grew by more than 40% year-on-year, reaching 2,972. Of these, 308 are financial firms, while 2,664 are non-financial, demonstrating the centre's diversified base of activities.

Expanding Asset Management Footprint

The asset management landscape within ADGM showed notable momentum, with AUM increasing by 42% compared to the same period in 2024. The number of fund and asset managers rose to 154, while registered funds reached 209, reinforcing the centre's appeal as a jurisdiction of choice for fund management and investment structuring.

Global institutions continued to strengthen their presence within the centre. Among them, Nuveen, one of the world's leading investment managers, manages between USD 3 - 5 billion from its ADGM office and expects to double its regional AUM over the next three years. The growing presence of well-known financial names, such as Fortress Investment Group, Circle, Partners Group, Bitcoin Suisse, and PATRIZIA, further reflects ADGM's attractiveness for cross-border investment activity.

Strategic Partnerships and Institutional Growth

H1 2025 was marked by several landmark collaborations involving ADGM-registered entities and major Abu Dhabi institutions.

• Fortress Investment Group established a permanent ADGM office and entered a USD 1 billion partnership with Mubadala focused on global credit and real estate investments.

• Kimmeridge signed a memorandum of understanding with Mubadala Energy to co-develop LNG and natural gas ventures, creating a transatlantic energy corridor.

• IHC, BlackRock, and Lunate, an ADGM-based asset manager, announced an AI-native reinsurance platform expected to manage liabilities exceeding USD 10 billion.

• Mubadala and Alpha Dhabi expanded their ADGM-based private credit joint venture to USD 2.5 billion.

Such transactions underline ADGM's growing importance as a financial centre that facilitates institutional-scale investments and fosters collaboration between international and regional players.

Regional Leadership by Market Capitalisation

Another key milestone achieved in the first half of 2025 was ADGM becoming the largest IFC in the region by market capitalisation of its registered entities. By mid-year, ADGM-based companies listed on the Abu Dhabi Securities Exchange (ADX) had a combined market value exceeding AED 500 billion. This achievement reflects both the maturity of the ADGM ecosystem and the strong investor confidence it commands in regional capital markets.

Global Outreach and Engagement

Throughout the first half of the year, ADGM enhanced its international engagement through major conferences and roadshows. Its participation at CityWeek 2025 in London focused on strengthening dialogue around sustainable finance, technological innovation, and capital markets development.

In partnership with the Abu Dhabi Department of Economic Development (ADDED), ADGM also led roadshows in China and Japan to promote Abu Dhabi as a gateway for global financial and investment activity. These initiatives contributed to a growing international network and deepened collaboration between ADGM and other financial jurisdictions.

Expanding Workforce and Infrastructure

With the completion of the transition period for Al Reem Island, ADGM's jurisdiction now spans both Al Reem and Al Maryah Islands. By the end of June 2025, the total workforce operating within ADGM had reached 35,964 professionals, underscoring the growing economic activity within the centre.

This growth aligns with Abu Dhabi's wider population expansion up 7.5% in 2024 to more than 4.1 million residents and highlights ADGM's role in attracting global expertise and facilitating professional mobility within the financial and corporate sectors.

Regulatory and Operational Developments

The Financial Services Regulatory Authority (FSRA) continued to strengthen ADGM's regulatory framework during H1 2025. It issued 52 In-Principle Approvals (IPAs) and 45 Financial Services Permissions (FSPs), representing annual increases of 27% and 45% respectively.

The FSRA also enhanced cooperation with other regulators, signing Memoranda of Understanding with authorities in Azerbaijan, Bhutan, Hong Kong, and Sweden. In addition, new guidance was issued on sanctions compliance, cybercrime prevention, and cybersecurity, ensuring continued alignment with global regulatory standards.

The Registration Authority (RA) introduced several digital and policy enhancements to improve ease of doing business. These included the launch of AccessRP, a digital tool for property interest verification, and new Commercial Permits Regulations that offer greater operational flexibility. Updated Fees Rules reduced entry costs for new businesses, while supervisory activity increased by over 200% year-on-year, demonstrating ADGM's focus on strong governance and compliance.

Legal Framework and Dispute Resolution

ADGM Courts continued to advance judicial innovation within the region. In H1 2025, they launched a Pro Bono Mediators Panel composed of internationally accredited mediators, broadening access to mediation services and supporting early dispute resolution.

In a related development, the International Bar Association (IBA) confirmed that IBA Arbitration Day 2026 will be hosted in Abu Dhabi, with ADGM as the chosen venue, a recognition of the centre's reputation as a hub for international arbitration and legal excellence.

Nurturing Talent Through ADGM Academy

The ADGM Academy expanded its training and knowledge-building initiatives, delivering 100 training sessions to more than 2,600 participants and hosting 49 sector-specific events with over 1,300 attendees.

Supporting the UAE's workforce development goals, the Academy facilitated 900 private-sector job placements in H1 2025, with targets to place 2,900 Emiratis by year-end. Its Research Centre also released eight papers focusing on AI, cybersecurity, financial crime prevention, and digital asset custody, areas shaping the future of global finance.

Outlook

As ADGM approaches its 10-year anniversary in October 2025, it continues to evolve as a cornerstone of Abu Dhabi's economic diversification and financial growth strategy. With record performance across licensing, asset management, and institutional engagement, ADGM's momentum signals sustained confidence from both domestic and international markets.

The centre's continued investments in infrastructure, regulation, and human capital position it to maintain its trajectory as the MENA region's largest and most dynamic international financial centre.

Source: Abu Dhabi Global Market (ADGM) Official Release - July 2025

Disclaimer:
This article is based on publicly available information from the Abu Dhabi Global Market (ADGM). It is provided for general informational purposes only and does not constitute legal, financial, or regulatory advice. VelthRad Consultants makes no representations or warranties as to the accuracy or completeness of the information provided.