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Abu Dhabi has become one of the largest international financial centers in the world in terms of geographical area, after a decision was issued to expand the authority of the Abu Dhabi Global Market. This decision also supports the Abu Dhabi Global Market’s growth strategy 2023-2027, which aims to develop the financial sector in Abu Dhabi and consolidate its position as a leading global financial center, especially with the increasing role of the financial sector and its main contribution to the gross domestic product of the Emirate of Abu Dhabi.
With the inclusion of Al Reem Island, the geographical area of the Abu Dhabi Global Market will increase to about 14.37 million square metres, nearly 10 times the current area of the Abu Dhabi Global Market.
According to the Cabinet’s decision, the authority of the Abu Dhabi Global Market will be expanded as a financial free zone to Al Reem Island, next to its current headquarters on Al Maryah Island, in order to meet the growing demand from a wide range of international companies that are now choosing Abu Dhabi as a preferred destination to expand and develop their business worldwide. Qualifying companies within the geographical scope of the free financial zone are entitled to benefit from the zero percent tax rate on corporate income.
A thriving financial center
Ahmed Jassim Al Zaabi, Chairman of the Department of Economic Development in Abu Dhabi and Chairman of the Abu Dhabi Global Market, said: “In line with the vision of our wise leadership to build and diversify our future economy and increase the contribution of the financial sector, global financial institutions, family offices, entrepreneurs and leading talents in the field of financial technologies continue to choose Abu Dhabi Global Market as a preferred strategic location for them, through which they can access a wide range of capital financing options and investment opportunities that Abu Dhabi provides them.”
He added: «Al Maryah Island has succeeded in establishing its position as a thriving international financial center, as its occupancy rate is currently more than 95%, in addition to the increasing volume of requests received from international companies wishing to expand their business or enhance their presence by being here in Abu Dhabi, and based on So we directed our efforts to meet this growing demand. With its largest area, Al Reem Island, adjacent to Al Maryah Island, provides many opportunities and a variety of space options for world-class offices, residential, educational, medical and entertainment facilities. Together, Al Maryah Island and Al Reem Island will become one of the most attractive places to live and work in financial centers around the world.”
He continued, “This expansion represents a unique opportunity for Abu Dhabi to enhance its position as a leading global financial center and a preferred global destination. The combination of English common law and the regulatory framework applied in these two islands will unlock greater economic opportunities. We look forward to working with our strategic partners and stakeholders to achieve what we aspire to achieve.”
8 years
The Abu Dhabi Global Market succeeded in a short period of no more than eight years in achieving remarkable growth, as the Abu Dhabi Global Market currently includes about 1,400 operating companies and 5,500 licensed companies, and a workforce of 11,000 people working in the Abu Dhabi Global Market square. Over the past year, the market has achieved a record 56% increase in the volume of assets under management and a 30% increase in the number of active licenses.
Today, Abu Dhabi stands out as the owner of the “hawk economy” and the “capital capital” in the region, as it hosts the largest sovereign wealth funds in the world that manage assets worth trillions of US dollars, in addition to a wide network of investment capital companies and family offices. The expansion of ADGM’s authority is testament to its being the fastest growing international financial center in the region, as demonstrated by the market’s achievements in 2022.
ADGM and its authorities are currently working with stakeholders in key government agencies and other local authorities to finalize the necessary transitional arrangements covering the activities of all entities currently operating on Reem Island, including those operating in the financial services sector. The concerned authority in the Abu Dhabi Global Market will communicate and coordinate with the concerned authorities on Al Reem Island to arrange the transitional phase.
