The strategy of courting international hedge funds appears to have paid off for Abu Dhabi after its international financial centre, the Abu Dhabi Global Market (ADGM), reported a 35% year on year growth in revenue for the first half of 2023.
The free zone now has 102 asset managers managing 128 funds, which have been key contributors to the ADGM’s growth.
Another factor cited by the ADGM is the amendment to its regulatory framework that enabled the introduction of private credit funds.
There is likely to be further growth in the second half of the year given that 46 firms have been granted in-principle approval, a 119% increase compared to H1 in 2022.
In addition, Abu Dhabi-based Chimera Investment last week launched a US$50 billion alternative investment firm Lunate which will be based in the ADGM.
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