Abu Dhabi's financial hub reports 42% surge in active companies

 Abu Dhabi’s financial hub on Monday posted a 42% year-on-year increase in registered entities in the first half of 2025, as global firms look to deepen their presence in the Gulf and gain proximity to the emirate’s powerful sovereign wealth funds.

The Abu Dhabi Global Market also reported a 42% increase in its assets under management since last June, with the financial hub now home to 154 fund and asset managers managing a total of 209 funds.

ADGM is a financial free zone built on English common law.Abu Dhabi, home to 90% of the country's oil reserves, has been intensifying its push to diversify beyond hydrocarbons by leveraging its vast sovereign wealth funds, which collectively manage nearly $2 trillion - more than any other city worldwide.

The United Arab Emirates has become increasingly attractive to companies and high-net-worth individuals in recent years, thanks to its strong post-pandemic economic rebound, tax-free environment, and ease of doing business.Key entrants to ADGM in the first half of the year include Kimmeridge and Fortress Investment Group, with the latter signing a $1 billion partnership with Abu Dhabi sovereign wealth fund Mubadala in May.

In August, Lunate, an asset manager steered by UAE national security adviser and royal family member Sheikh Tahnoun bin Zayed, acquired a minority stake in hedge fund Brevan Howard, one of the first global firms to open a headquarters in ADGM in 2023.

Sheikh Tahnoun also oversees Abu Dhabi's largest sovereign wealth fund, ADIA.ADGM said the number of companies with bases in the centre reached 2,972 as of June 30, up from 2,381 at the end of December.

The centre's results come after neighboring Dubai International Financial Centre reported a 25% year-on-year rise in active companies, reaching 7,700 at the end of the first half.