ADGM Witnesses 14 Leading Financial Institutions Opening Offices in Abu Dhabi

Cementing its position as one of the leading financial centres in the world, Abu Dhabi Global Market (ADGM), has announced that 14 major financial institutions, which have $452 billion of assets under management (AuM) have committed to establishing new operations in ADGM, in the last one week.

A year into Abu Dhabi’s “Falcon Economy,” these announcements, coincide with the second edition of Abu Dhabi Finance Week (ADFW), reaffirm the Emirate’s rapidly increasing appeal to global finance and ADGM’s strategic role and contributions towards the significant growth of the “capital of capital” and its emergence as a global financial powerhouse.

The attractiveness of ADGM as a holistic financial hub, which stands as the sole jurisdiction in the region to adopt the direct application of English common law, has resulted in renowned global firms establishing themselves in the nation’s capital.

These firms include BNY Mellon venture Alpheya, GQG Partners, Joy Capital, Apeiron Group Investments, The Children’s Investment Fund (TCI), Copper, Vibrant Capital, Centricus, and Eiffel Investment. The UAE’s capital international financial centre also recorded six further announcements made by emerging growth firms, bringing the total to 23.

Reposing Confidence

In a resounding signal of confidence in the financial centre’s pivotal role across the global and regional financial landscapes, J P Morgan, the world’s largest bank, has reiterated its commitment to the capital in an upgraded licence, to operate its payment and banking business.

Jamie Dimon, Chairman and Chief Executive Officer of JP Morgan, said that the determination of the Emirate that is forging ahead with its reform agendas is extremely impressive, be it their economic, financial, and social agendas.

He said that these were not easy changes but there is clear progress on all fronts towards the goal to create a safe and secure society and a dynamic Falcon Economy.

“We have continued to add to the team this year and have submitted an application to upgrade our operating licence to a full category one banking entity, signalling our intent and commitment to the size of the opportunity here,” Dimon added.

This is in addition to the world’s largest independent financial services group, Rothschild & Co, who have expanded their strong two-decade presence across the Emirates via a newly granted ADGM licence as part of the firm’s broader expansion strategy and commitment to the region, and the World Bank renewing their long-term presence in the financial centre.

Saeed Al Awar, Partner and Head of Middle East, Rothschild & Co., said that securing ADGM licence is an expansion of their existing presence in the UAE where the firm has been operating for nearly two decades.

“This reaffirms our commitment to our clients in Abu Dhabi and the UAE and is part of our broader expansion strategy and commitment to the region,” he noted.

Commenting on the “Falcon Economy’s” impressive flight, Ray Dalio, Founder, Co-Chairman and Co-Chief Investment Officer, Bridgewater Associates, said: “We are talking today about how the world order is changing, and how Abu Dhabi and the whole GCC region are becoming a renaissance state.”

Alan Howard, Co-founder, Brevan Howard Asset Management, said that Abu Dhabi’s robust regulation, rule of law and favourable taxation, represents a lure for financial firms moving to the UAE’s capital.

“Out of this place, you can see the Bank of Japan at the beginning of the day and at the end of the day, you can see the Fed. As soon as you get more top hedge funds coming here, that can lead to the banks having to send their best people,” he said.

Ahmed Jasim Al Zaabi, Member of Abu Dhabi’s Executive Council & Chairman of the Abu Dhabi Department of Economic Development (ADDED) and ADGM, said that major global players have chosen Abu Dhabi to base their business operations is proof of a unique global opportunity being seized by future thinking institutions.