ADGM sees sharp rise in AUM and business activity in Q1 2025
Abu Dhabi Global Market (ADGM) recorded a strong start to 2025, with a 33% rise in assets under management and over 600 new firms added in the first three months of the year. The figures point to growing international confidence in Abu Dhabi’s financial centre and reinforce ADGM’s role as a gateway for firms looking to access the Gulf and wider MENA markets.
Growth across core financial sectors
The centre’s core financial services sectors continued to expand in the first quarter, led by asset managers, private equity firms and fintech operators. The number of financial services firms grew by 26% compared to the same period last year, supported by an increase in legal, advisory and compliance businesses.
The total number of licensed entities in the jurisdiction now exceeds 5,500, showing the centre’s ability to support both large multinationals and specialist firms. The workforce also grew to nearly 29,000, a 17% year-on-year increase.
Growth across core financial sectors
ADGM’s first-quarter activity reflects broad-based momentum across its financial ecosystem. New entrants included firms in asset management, private equity and fintech, alongside an uptick in legal, compliance and consulting services supporting the sector. The expansion points to deepening specialisation and increasing operational depth within the jurisdiction.
It also underscores its appeal as a fully integrated centre for cross-border business thanks in large part to its rules-based environment and legal certainty grounded in English common law.
Al Reem Island extends ADGM’s reach
The addition of Al Reem Island to ADGM’s jurisdiction in 2023 has also been widely welcomed. The extra space has helped ease capacity limits, while the simplified setup process and updated fee structure have lowered the threshold for entry, particularly for smaller firms.
Many of the new arrivals are either startups setting up for the first time or companies relocating from other jurisdictions. For both, ADGM’s regulatory clarity and ease of doing business are key attractions. The expansion is also part of a broader effort to diversify the types of businesses operating within the centre and give more support to SMEs across the region.
Digital assets and innovation gain ground
ADGM continues to build its position as a hub for digital asset firms and emerging tech companies. New entrants in the first quarter included businesses working in areas like tokenisation, decentralised data and smart contract development. The centre also signed a new agreement with Chainlink, aimed at supporting regulated blockchain applications.
These moves are part of a broader strategy to attract more tech-focused companies and remove many of the common operating barriers they face.
Global outreach and foreign investment
As interest in digital assets and financial innovation grows, ADGM is also stepping up its international outreach. In the first quarter, delegations visited key markets including the US, China and Japan, meeting with institutional investors, fintech firms and family offices to highlight what the centre offers.
These efforts are translating into results. More firms from Europe and East Asia are choosing ADGM as their regional base and international businesses now make up the majority of companies registered in the jurisdiction, reinforcing its role as a platform for global investment into the Gulf.
Human capital and regulation
Hiring continued to rise in the first quarter, with financial, legal and tech roles making up most of the new demand. The ADGM Academy helped support this growth through training and placement programmes, many run in partnership with international institutions.
Regulatory changes also came into effect during the quarter, including updates to employment rules aimed at improving clarity for both companies and employees. These adjustments reflect ADGM’s focus on keeping its business environment practical and responsive as more firms come on board.
Sustainability and ESG finance
Alongside updates to employment rules, ADGM is also continuing to push for stronger ESG practices. Its sustainable finance agenda gained further ground in the first quarter, with more firms signing the Abu Dhabi Sustainable Finance Declaration. Recent additions include PwC Middle East and Aquila Capital, reflecting broader buy-in from both regional and international players.
The initiative encourages better disclosure, clearer governance, and longer-term thinking around environmental and social risk. While still evolving, it forms part of ADGM’s wider approach to building a stable and forward-looking financial centre.
How Sovereign PPG can support your ADGM setup
As ADGM strengthens its position in international finance, Sovereign PPG helps clients make the most of the opportunities it offers.
We support businesses with the registration, licensing, and compliance requirements needed to operate in Abu Dhabi Global Market. This includes company formation, ongoing regulatory obligations, and coordination with ADGM authorities. The team works across multiple sectors and can assist with both new and existing business structures.
If you need support with ADGM setup or compliance, we can help. Call us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, sovppg@sovereigngroup.com or complete the contact form below.
