Wednesday, 14 August 2024

#AbuDhabi's financial centre says company registrations up 31% | Reuters

Abu Dhabi's financial centre says company registrations up 31% | Reuters

The number of companies that set up base in Abu Dhabi's financial centre ADGM increased by 31% in the first half of the year as the likes of Morgan Stanley joined a slew of other financial services firms moving to the oil-rich emirate.

An economic rebound after the pandemic, a neutral political stance, and relative ease of doing business have boosted the United Arab Emirates' (UAE) appeal among businesses and wealthy individuals in recent years.

Abu Dhabi has seen banks, hedge funds, family offices, venture capital firms and crypto traders rushing to the UAE's capital as they tap into a wealthy market that is home to some of the world's biggest sovereign wealth funds such as ADIA, Mubadala and ADQ.

Some of the big names include Ray Dalio, the billionaire and founder of hedge fund Bridgewater Associates, who opened a branch of his family office in the city last year, as well as peers such as Brevan Howard.

It also attracted banks such as Goldman Sachs (GS.N), opens new tab and Rothschild, which have traditionally picked neighbouring Dubai as their regional hub, but are setting up smaller offices in the UAE's capital and Riyadh to service their clients.

Unlike global financial centres like Wall Street and London's Canary Wharf, Abu Dhabi Global Market (ADGM) and other hubs in the region have also witnessed strong demand for commercial real estate space and embarked on expansion plans.

ADGM has expanded its area of jurisdiction's footprint tenfold by adding al-Reem Island to its current location on al-Maryah Island.

It also issued 1,271 new licences in the first six months of the year, up 20.5% compared with the same period in 2023, the financial centre said on Wednesday.

ADGM said companies setting up base in the financial centre reached a total of 2,088 as of the end of June, while assets under management rose by 226% compared with the first half of last year, with 112 fund and asset managers now operating there and managing 141 funds.

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