Abu Dhabi’s financial center is growing quickly as more companies set up to access the emirate’s wealth funds and Middle East markets. The official in charge of developing the hub said this growth will continue at a fast pace. Abu Dhabi holds 90 percent of the UAE’s oil reserves and is working hard to diversify its economy. Its sovereign wealth funds manage nearly $2 trillion in assets, supporting this shift.
Last year, the number of firms registered in Abu Dhabi Global Markets (ADGM) rose by 32 percent. Asset management at the center increased by 245 percent as large firms like BlackRock, Morgan Stanley, AXA, PGIM, and hedge fund Marshall Wace opened offices or registered funds there. Although ADGM still trails Dubai’s financial district, its rapid growth is clear.
Earlier this week, US alternative real estate firm Harrison Street announced it would open an office in Abu Dhabi. Harrison Street manages about $56 billion in assets. The center reported that in the first quarter of this year, new operating licenses jumped 67 percent, pushing the total number of firms past 2,380.
The growth shows no signs of slowing. Firms from Japan, India, and China are also entering the market. These include asset managers, financial institutions, as well as cryptocurrency and artificial intelligence companies. Since Abu Dhabi introduced cryptocurrency regulations in 2018, it has become a key hub for crypto investments. Major players like Circle and Coinbase have a presence at ADGM.
Abu Dhabi-backed investment group MGX recently invested $2 billion worth of crypto tokens in Binance, the world’s largest crypto exchange. These tokens were issued by World Liberty Financial, a venture linked to former US President Donald Trump. This move underlines Abu Dhabi’s growing role in alternative investments.
The emirate’s push to diversify its economy from oil to finance and technology is supported by its large sovereign wealth funds. These funds provide strong backing to attract global companies across various sectors. Abu Dhabi’s political stability and strong regulatory environment also make it a preferred destination for international investors.
With the number of firms and assets managed at ADGM continuing to grow, Abu Dhabi is set to become a major financial hub in the Middle East. The emirate’s ability to attract a wide range of financial and technology firms suggests that its economy will continue to diversify and expand.
