ADGM’s outstanding journey in 2023
1. ADGM expanded tenfold by incorporating Al Reem Island in April 2023, solidifying its position as one of the world’s largest International Financial Districts with a vast area of 14.38 million sqm.
2. In May 2023, ADGM launched its inaugural Money Laundering and Terrorist Financing (ML/TF) Risk Assessment of ADGM Legal Persons and Arrangements Report (LPA Report), showcasing a commitment to ensuring a secure financial environment.
3. ADGM FSRA announced crucial revisions to its Anti-Money Laundering and Sanctions Rules and Guidance, collectively known as “the AML Rulebook,” emphasizing a proactive approach to combat illicit financial activities.
4. The Registration Authority (RA) of ADGM contributed significantly by publishing the legislative framework for Distributed Ledger Technology (DLT) Foundations, paving the way for innovation and accountability in the blockchain technology sector within ADGM.
During the inaugural edition of Abu Dhabi Finance Week hosted by ADGM last November, His Excellency Ahmed Jasim Al Zaabi, member of the Abu Dhabi Executive Council and Chairman of the Abu Dhabi Department of Economic Development (ADDED), launched the concept of ‘Falcon Economy’ capturing the imagination of business leaders eager to soar with the emirate’s ascendancy as a premier regional and international business hub.
“In merely eight years, we have become one of the world’s largest financial districts and the fastest-growing international financial centre in the region, for two years consecutively.”
H.E. Ahmed Al Jasim Al Zaabi
Achieving success by turning this imaginative idea into a reality, 2023 marked a triumphant year for Abu Dhabi Global Market (ADGM), the international financial centre in the UAE’s capital, as it solidified its status as the fastest-growing financial hub in the region for two consecutive years. Abu Dhabi’s global recognition as a prominent financial centre was underscored by ADGM’s strong start to the year, building on the significant growth seen in 2022 and exhibiting a positive outlook for the months ahead. The quarterly and half-yearly growth metrics for 2023 showcased impressive advancements across all aspects of the financial centre’s operations.
ADGM: The Financial Powerhouse
Following the trend from 2022, ADGM’s asset management sector experienced an outstanding year, witnessing a remarkable 35% YOY increase in Assets Under Management (AUM) by the end of 2023. The sector attracted 102 asset managers overseeing 141 funds, with names like Brevan
Howard, Goldman Sachs, and Blackstone establishing operations within ADGM. The financial hub’s appeal transcended borders, as operational entities surged to 32% growth from 2022. This influx included global and regional giants like Ardian, Asian Infrastructure Investment Bank (AIIB), and local entities such as ADQ and G42. The end of 2023 also saw 88 financial institutions and 2 exchanges receiving approval from ADGM. Adding to this, ADGM’s workforce mirrored its upward trajectory, expanding by 22% to 13,394. Notably, global financial institutions and investment banks, including JP Morgan and BNP Paribas, found a home within ADGM.
Year of Sustainability and COP28 Initiatives
In line with the ‘Year of Sustainability’ extending into 2024, ADGM took a leading role in sustainable finance. The introduction of the region’s first comprehensive regulatory framework for Sustainable Finance in the first half of 2023 showcased ADGM’s commitment. Designated as the ‘Principal Climate Finance Partner’ of COP28, ADGM launched the Global Climate Finance Centre (GCFC) and witnessed the initiation of ALTÉRRA, a 30 USD billion climate vehicle. The Abu Dhabi Sustainable Finance Declaration gained momentum, attracting 28 new signatories in 2023, bringing the total count to 145.
MS as your partner in ADGM
As the Falcon Economy takes flight, MS can help you achieve success by contributing to the affluent story of ADGM and leaving a lasting impact on the financial landscape of Abu Dhabi. The future is bright, and with strategic collaboration, MS can be a key player in shaping the financial narrative of this dynamic and rapidly growing financial hub for you.
