Firms operating out of the Abu Dhabi Global Market (ADGM) recorded a 33% y-o-y increase in assets under management (AUM) during 1Q 2025, according to a press release (pdf). A total of 119 fund and asset managers were managing 184 funds out of ADGM by the end of the quarter.

The number of new licenses issued to operate in the ADGM rose 67% y-o-y in 1Q. The total number of operational entities within the financial center rose 43% to 2.8k by the end of 1Q, and the number of financial service providers located in the financial center jumped 26% to 367 in the same period.

ADGM issued 3.5k new work permits to businesses establishing themselves on Al Reem Island in 1Q, where a total of 1.1k new entities are now operating under ADGM’s expanded jurisdiction. This includes 600 new businesses, and more than 500 companies that migrated to an ADGM license.

Legal clarity can go a long way in attracting investors: ADGM has been attracting investors through an autonomous legal system based on the English common law, which offers legal clarity and familiarity to international firms, the press release notes.

…as can financial incentives: ADGM cut commercial licence fees for non-financial and retail businesses by at least 50% in January, replacing its tiered model with a flat AED 1k fee to make setup easier for SMEs.

Some of the names that have recently opened shop in the ADGM include global law firm Skadden, PE firm Investindustrial, NewVest, global alternative asset manager Arcapita, Polen Capital, sustainable finance player Olive Gaea, The Open Network, and Aquila Group.

REMEMBER- Swiss digital asset firm Bitcoin Suisse last month secured preliminary approval from the ADGM Financial Services Regulatory Authority for its Middle East subsidiary BTCSto offer virtual asset trading, crypto securities, derivatives, and custody services in ADGM. Deutsche Bank also secured financial service permission from the authority to conduct regulated activities including arranging credit and investment transactions, as well as advising on investment or credit.

New moves in play that could impact businesses in the ADGM: The financial hub’s Registration Authority last month proposed stricter rules for legal, tax, and company service providers, including tougher licensing criteria, mandatory professional indemnity ins. of USD 2 mn, and clearer separation of services to avoid conflict of interests and maintain confidentiality. These changes aim to raise professional standards, but we are yet to see how they will impact ADGM’s business attractiveness in the months ahead.

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