Investing.com -- Abu Dhabi Global Markets (ADGM) will continue to see rapid growth as financial firms rush to establish presence in the oil-rich emirate, according to the official overseeing the financial hub’s expansion.
The number of firms registered in ADGM increased by 32% last year, while assets managed by companies there grew by 245%. Major financial institutions including BlackRock (NYSE:BLK), Morgan Stanley (NYSE:MS), AXA, PGIM, and hedge fund Marshall Wace have all established or registered funds in Abu Dhabi.
On Tuesday, Harrison Street, a U.S. firm specializing in alternative real estate assets with approximately $56 billion in assets under management, announced it would open an office in Abu Dhabi.
ADGM reported last week that new operating licenses increased 67% in the first quarter of 2024, bringing the total number of firms at the center to over 2,380.
"We still have very strong growth," said Arvind (NSE:ARVN) Ramamurthy, ADGM’s Chief Market Development Officer, in an interview on Monday. He noted that the pipeline of new firms looked promising for the remainder of the year, though he did not provide a specific forecast for asset growth.
"Will it be 245% again this year? I wish. Let’s see," Ramamurthy added.
Abu Dhabi, which holds 90% of UAE’s oil reserves, has accelerated economic diversification efforts, leveraging its sovereign wealth funds that collectively manage nearly $2 trillion in capital.
While ADGM still trails Dubai as a financial center, it is attracting an increasing number of firms from Japan, India, and China. These include asset managers and financial institutions as well as cryptocurrency and artificial intelligence companies, according to Ramamurthy.
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