FILE PHOTO: A general view of the Abu Dhabi skyline is seen, December 15, 2009. REUTERS/Ahmed Jadallah
DUBAI: Abu Dhabi's financial centre, the Abu Dhabi Global Market (ADGM), said on Wednesday that the number of companies that set up base there grew 32% in 2023 from a year earlier, reaching a total of 1,825.
Assets under management rose by 35% as several investment firms and hedge funds established business in the financial centre, ADGM said in a statement, adding that a total of 102 asset managers managing 141 funds operated there as of the end of last year.
A quick post-COVID economic rebound, neutral political stance, and relative ease of doing business have boosted the United Arab Emirate's (UAE) appeal among businesses and wealthy individuals in recent years amid global economic uncertainties and growing geopolitical risks.
Abu Dhabi, which is home to sovereign wealth funds the Abu Dhabi Investment Authority, Mubadala Investment Company and ADQ, is quickly becoming a hub for hedge funds, family offices, venture capital firms and crypto traders.
It has sped up investments to develop non-oil sectors such as financial services under an economic transition strategy.
Last year Ray Dalio, the billionaire and founder of hedge fund Bridgewater Associates, opened a branch of his family office in the UAE capital, which has also attracted peers including Brevan Howard.
The financial district is expanding its area of jurisdiction to 10 times its footprint by adding al-Reem Island to its current location on al-Maryah Island in Abu Dhabi.
"We remain strongly positive as we move forward into 2024," ADGM Chairman Ahmed Al Jasim Al Zaabi said in the statement.
ADGM said that more than 125 companies were in the pipeline to be registered in the financial centre. - Reuters
