ADGM Reports Strong Q1 2025 Performance Driven By Investor Confidence And Regulatory Enhancements

Abu Dhabi Global Market (ADGM), the UAE capital's international financial centre, has maintained its growth momentum into 2025. In the first quarter, ADGM experienced notable expansion across various metrics. This progress was driven by global investor confidence, regulatory improvements, and successful initiatives within its expanded jurisdiction on Al Reem Island.

ADGM's asset management sector demonstrated significant growth in Q1 2025. Assets under management increased by 33% compared to the same period in 2024. By the end of Q1 2025, 119 asset and fund managers were overseeing a total of 184 funds from ADGM.

The number of operational entities at ADGM rose by 43% to reach 2,781 by Q1 2025. Financial services entities also grew by 26%, totalling 367. This growth reflects ADGM's ability to attract diverse global firms seeking Abu Dhabi's unique financial infrastructure.

In Q1 2025, new licences issued increased by 67% compared to Q1 2024. Notable companies establishing a presence included Skadden, Investindustrial, NewVest, Arcapita, Polen Capital, Seviora, Olive Gaea, TON, and Aquila Group.

ADGM has focused on human capital as part of its 'Capital of Capital' strategy. The workforce on Al Maryah Island grew to over 29,000 individuals in Q1 2025, marking a 17% increase from the previous year. Additionally, ADGM issued 3,509 new work permits for businesses on Al Reem Island.

To enhance workplace protections while maintaining business flexibility, ADGM introduced new Employment Regulations. These updates aim to strengthen ADGM's appeal as a global talent hub and support sustainable economic growth.

Jurisdictional Expansion and Fee Reductions

The completion of ADGM's jurisdictional expansion to Al Reem Island in Q1 2025 yielded strong outcomes. Over 600 new businesses set up operations there, while more than 500 existing companies migrated to an ADGM licence. Currently, there are a total of 1,100 new entities operating within this expanded jurisdiction.

In January, ADGM revised its fee schedule for non-financial and retail businesses. Commercial licence costs were reduced by at least half to support SME growth and diversification. The simplified structure now includes a flat licence fee of AED1,000.

Technological Advancements and Partnerships

In March, ADGM signed an MoU with Chainlink to develop compliant tokenisation frameworks using Chainlink’s infrastructure. Additionally, Stacks Asia and Bitgrit joined ADGM’s ecosystem in Q1 2025 to leverage its Distributed Ledger Technology (DLT) Foundations framework.

ADGM launched an all-in-one mobile application in Q1 2025 to enhance digital experiences for businesses and residents. It also introduced a digital platform for real estate transactions that enables fully virtual workflows—a first in the region reflecting its commitment to tech-driven transformation.

Education Initiatives and Research

The ADGM Academy created job opportunities for UAE nationals through nine specialised tracks in Q1 2025. These efforts were supported by internationally recognised certifications for upskilling and reskilling.

The Academy signed agreements with Arab Youth and the Federal Tax Authority for training programmes aligned with national goals. Additionally, the ADGMA Research Centre published six research papers focusing on AI's impact on the UAE financial sector during this period.

This sustained growth highlights ADGM’s role as a key player in Abu Dhabi’s financial landscape while aligning with the UAE’s long-term economic vision.

With inputs from WAM