Nearly 160 Financial Firms In ADGM Licensing Pipeline

(MENAFN- Khaleej Times) Nearly 160 financial firms are in the licensing pipeline at Abu Dhabi Global Market (ADGM), as the international financial center continues to attract global financial institutions and expand its presence across asset management, private credit and digital assets.

Speaking at the ADGM Global Media Forum, Lawrence Paramasivam, Head of Policy and Legal at ADGM's Financial Services Regulatory Authority (FSRA), said 420 financial institutions were operating from the financial center as of October 1, 2026.

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He said nearly 160 additional entities had either submitted license applications or received in-principal approvals, reflecting continued interest from firms looking to establish operations in Abu Dhabi.

The growth is particularly evident in asset and fund management, including hedge funds, venture capital, private equity and increasingly private credit.

Paramasivam said ADGM's growth is not only reflected in the number of financial institutions entering the market, but also in the expansion of existing firms.

Asset management supports expansion

The regulator said the financial center continues to attract asset managers and investment firms, supported by its regulatory framework and Abu Dhabi's growing financial ecosystem.

The increase in investment activity has also encouraged demand for corporate structures, including special purpose vehicles and investment entities registered within ADGM.

Paramasivam highlighted the role of the financial center's legal framework, based on the direct application of English common law, in providing familiarity and confidence to international financial institutions and investors.

Digital assets and insurance attract interest

ADGM has also seen growing activity in digital assets, with more than 25 entities conducting virtual asset-related businesses from the financial center.

The FSRA introduced its regulatory framework for digital assets in 2018 and has continued developing it as the industry evolves.

Meanwhile, the regulator is reviewing its insurance framework following increasing interest from international companies seeking to establish reinsurance operations in ADGM.

The review aims to support evolving business models while maintaining regulatory standards and investor protection.

AI to support financial supervision

The FSRA is also increasing its focus on artificial intelligence as financial institutions adopt new technologies.

Paramasivam said the authority is exploring the use of AI across licensing, supervision and enforcement to improve efficiency and support regulatory processes.

However, he stressed that the technology would not replace human regulatory decisions.

"We don't see AI as replacing regulatory judgment," he said.

He added that accountability and responsibility would remain with regulators and individuals.

The FSRA is also strengthening its focus on cybersecurity, financial crime prevention and operational resilience as the number and complexity of financial institutions operating in ADGM continue to increase.

Paramasivam said maintaining investor confidence and regulatory standards remains central to the authority's approach as Abu Dhabi's financial sector expands.

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