Abu Dhabi Global Markets (ADGM)
Abu Dhabi Global Markets (ADGM) is the primary financial free zone in the emirate of Abu Dhabi. Located on Al Maryah Island, ADGM’s presence affords all entities established on the island, as well as on Al Reem Island, the benefit of operating in a free zone, including the surrounding office buildings.
Key Highlights
ADGM is the regions newest onshore financial centre, and it is building itself from the ground up. While this can be viewed as a disadvantage, the benefit of learning from the challenges faced by Dubai’s DIFC does exist. ADGM is seen as ‘the place to be’ for financial entities of all sizes, due to their reduced costs, faster license issuance and having a proactive regulator.
ADGM is a global leader in the space of digital assets, cryptocurrency, and blockchain regulations and was the first in the region to introduce a comprehensive regulatory framework for virtual assets.
ADGM is unique in the region for directly applying English Common Law in its entirety rather than adapting it. This makes it particularly attractive to international investors familiar with the UK legal system. While Dubai’s DIFC Is also based on common law, it has its own legal framework and court precedent, which means there is some divergence from pure English Law.
ADGM has a growing reputation as a financial centre with particular focus on institutional investors, family offices, and digital assets whilst still building a broader network of private financial services.
ADGM has close ties to Abu Dhabi’s sovereign wealth funds (such as ADIA, Mubadala, and ADQ) which could potentially be an advantage for institutional investors and fund manager.