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ADGM has undergone significant expansion, solidifying its position as one of the largest financial districts globally.

by Swati Gupta

May 20, 2023 28

In a significant development for the financial landscape of Abu Dhabi, the jurisdiction of Abu Dhabi Global Market (ADGM) has been expanded to include Al Reem Island. This expansion solidifies ADGM’s position as one of the largest financial districts in the world, boasting a sprawling total area of 1,438 hectares.

The expansion of ADGM’s jurisdiction to Al Reem Island comes as a result of UAE Cabinet Resolution No. 41. This resolution effectively designates Al Reem Island as a financial-free zone, supplementing the existing financial hub of Al Maryah Island. The decision to expand ADGM’s reach reflects the growing demand from international companies seeking to establish a presence in Abu Dhabi and leverage the Emirate’s strategic advantages for their business expansion plans.

ADGM has gained global recognition as a dynamic and thriving financial centre since its establishment in 2013. It has played a pivotal role in transforming Abu Dhabi into a preferred destination for international businesses, offering a robust regulatory framework, a business-friendly environment, and a range of support services to facilitate growth and innovation.

The expansion to Al Reem Island marks a strategic move that aims to further bolster Abu Dhabi’s position as a prominent global financial hub. With its prime location and world-class infrastructure, Al Reem Island presents an attractive investment opportunity for companies looking to tap into Abu Dhabi’s flourishing economy. The extension of ADGM’s jurisdiction to this new area demonstrates the Emirate’s commitment to creating an ecosystem that fosters economic diversification, innovation, and sustainable growth.

Al Reem Island is renowned for its vibrant mix of residential, commercial, and leisure developments. With the addition of ADGM’s financial expertise and regulatory oversight, the island is poised to become a magnet for financial institutions, fintech companies, and a wide range of enterprises operating within the financial services sector. This integration of financial activities will contribute to the overall growth and dynamism of Al Reem Island, further enhancing its reputation as a sought-after destination for businesses and investors.

The expansion of ADGM’s jurisdiction aligns with Abu Dhabi’s broader economic vision and strategic initiatives, including the Abu Dhabi Economic Vision 2030. This ambitious roadmap aims to diversify the economy, reduce dependency on oil revenues, and position the Emirate as a global hub for finance, trade, and innovation. ADGM’s growth and expanded presence contribute significantly to the realization of these goals, attracting foreign direct investment, fostering job creation, and nurturing an ecosystem that encourages entrepreneurship and technological advancements.

By expanding ADGM’s jurisdiction to Al Reem Island, Abu Dhabi has sent a clear signal to the global business community. The Emirate is actively fostering an environment conducive to growth, innovation, and international collaboration. The strategic location of Al Reem Island, coupled with ADGM’s robust regulatory framework and comprehensive financial services ecosystem, presents an attractive proposition for companies seeking to establish a foothold in the region and tap into the immense opportunities offered by the UAE and the wider Middle East market.

As ADGM expands its reach to encompass Al Reem Island, stakeholders in the financial industry are optimistic about the potential synergies and growth prospects this move will unlock. The extended jurisdiction will provide an enhanced platform for financial institutions, startups, and established companies to connect, collaborate, and thrive. It will also contribute to the ongoing efforts to position Abu Dhabi as a leading global financial hub, attracting talent, investments, and expertise from around the world.

The expansion of ADGM to Al Reem Island marks a significant milestone in Abu Dhabi’s journey towards establishing a thriving and diverse economy. With its vast size and comprehensive suite of financial services, ADGM is poised to play an even more prominent role in shaping the future of Abu Dhabi’s financial landscape. The Emirate’s commitment to creating an ecosystem that supports innovation, entrepreneurship, and sustainable growth remains unwavering, and the expansion of ADGM stands as a testament to its dedication to driving economic prosperity and positioning Abu Dhabi as a global leader in finance and business.