Abu Dhabi, UAE — Abu Dhabi Global Market (ADGM), a leading international financial center of the UAE’s capital, Thursday announced that 14 major financial institutions representing a total Assets Under Management AUM of $452 billion have committed to establishing new operations in ADGM.
A year into Abu Dhabi’s “Falcon Economy”, these announcements, coinciding 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, ADGM said.
The world’s largest bank, JP Morgan, reiterated its commitment to the capital in an upgraded license to operate its payment and banking business.
Jamie Dimon, Chairman and Chief Executive Officer, JP Morgan, said, “The determination of the emirate that is forging ahead with its reform agendas is extremely impressive, be it their economic, financial, and social agendas.”
“These are 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 license to a full category one banking entity, signaling our intent and commitment to the size of the opportunity here,” he said.
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 license 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 center.
Saeed Al Awar, Partner and Head of Middle East, Rothschild Co, said, “We are delighted to have received our licensing approvals from ADGM. This is an expansion of our existing presence in the UAE where we have been operating for nearly two decades which 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.”
BNY Mellon venture Alpheya, GQG Partners, Joy Capital, Apeiron Group Investments, The Children’s Investment Fund (TCI), Copper, Vibrant Capital, Centricus, and Eiffel Investment are other firms that have established their presence in the UAE.
The UAE’s capital international financial center also recorded six further announcements made by emerging growth firms, bringing the total to 23.
Commenting on the “Falcon Economy’s” impressive flight, Ray Dalio, Founder, Co-Chairman and Co-Chief Investment Officer, Bridgewater Associates said, “We’re talking today about how the world order is changing, and how Abu Dhabi and the whole GCC region are becoming a renaissance state.”
Echoing his fellow fund manager’s sentiment, Alan Howard, Co-founder, Brevan Howard Asset Management, said, “Abu Dhabi’s robust regulation, rule of law and favourable taxation, represent a lure for financial firms moving to the capital of the United Arab Emirates. 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.”
Ahmed Jasim Al Zaabi, Member of Abu Dhabi’s Executive Council Chairman of the Abu Dhabi Department of Economic Development (ADDED) and ADGM, said, “What we are witnessing in Abu Dhabi today, with major global players choosing the capital city to base their business operations is proof of a unique global opportunity being seized by future thinking institutions. We warmly welcome their presence and support in the growth and diversification of the ‘Falcon Economy’. This is the most successful week in ADGM’s history.”
A series of positive market announcements were made during the second edition of Abu Dhabi Finance Week (ADFW), which was held under the theme “Investing in the Transition Era.” The event welcomed over 17,000 attendees from more than 100 countries.