Why Are More SMEs Choosing ADGM in 2025?

If you’ve been keeping an eye on Abu Dhabi’s financial landscape, you’ve probably noticed how ADGM—the Abu Dhabi Global Market—has been on a serious growth streak. Riding high from a record-breaking 2024, ADGM has started 2025 by not just maintaining momentum but accelerating it, making waves that SMEs and entrepreneurs should definitely know about.

So, what’s going on at ADGM this year? Let’s break it down.

Growth That Speaks Volumes

In the first quarter of 2025 alone, ADGM saw its assets under management (AUMs) soar by 33 percent compared to last year. That’s huge! What’s more, the number of operational entities in ADGM jumped by 43 percent to almost 2,800 firms, and the financial services sector grew by 26 percent. These numbers tell us one thing: more companies are choosing ADGM as their home base for business.

Why? Well, it’s no coincidence. ADGM’s unique legal framework, based on English common law, offers businesses transparency and stability—something global investors crave. This is a big deal, especially for SMEs looking for a trustworthy, well-regulated environment to scale up.

Welcoming Big Names and New Opportunities

ADGM isn’t just growing in numbers; it’s attracting heavyweight players from around the world. From law firms like Skadden to investment powerhouses like Invest-industrial and Polen Capital, big names are setting up shop. But here’s the kicker — this growth is not just about the giants. ADGM has been smart about making space for SMEs too, especially with a fresh fee structure on Al Reem Island that slashes commercial licence costs by over 50 percent for non-financial and retail businesses. That’s a game-changer for startups and small businesses wanting to grow in a premium international financial hub without breaking the bank.

A Focus on People and Talent

Growth isn’t just about companies; it’s about people. ADGM’s workforce on Al Maryah Island has grown by 17 percent, now totalling over 29,000 professionals. They’ve also issued thousands of new work permits on Al Reem Island, showing a clear commitment to attracting talent.

And speaking of talent, ADGM recently updated its Employment Regulations, balancing strong workplace protections with the flexibility businesses need. This is great news for SMEs wanting to build strong, agile teams in a supportive environment.

Global Connections That Open Doors

ADGM isn’t staying local—they’re going global. Earlier this year, they engaged with hedge funds and private equity firms in Miami, deepened ties with Chinese investors in Beijing, and held strategic talks with Japanese financial leaders. These global moves are about creating new opportunities for businesses in Abu Dhabi, from startups to well-established firms, especially those looking to tap into international markets.

Al Reem Island: The New Frontier

Remember the buzz around Al Reem Island? Well, ADGM’s expansion there is proving to be a hit. Over 600 new businesses have set up shop, and more than 500 existing companies have migrated their licences to ADGM. In total, 1,100 new entities are now operating in this fast-growing jurisdiction. This expansion opens fresh avenues for SMEs, especially with the simplified and affordable licensing fees.

Pioneering Blockchain and Digital Innovation

For the tech-savvy and blockchain enthusiasts among SMEs, ADGM is leading the way. Their partnership with Chainlink to develop tokenisation frameworks is setting the stage for compliant and cutting-edge digital finance. Plus, new players like Stacks Asia and Bitgrit joining the ecosystem mean ADGM is rapidly becoming a blockchain innovation hub in the region.

And if you thought that was impressive, they’ve also rolled out a fully digital platform for real estate transactions—a first in the region. Imagine buying or selling property without ever leaving your desk. This is the kind of innovation that simplifies business and attracts tech-forward SMEs.

Commitment to Sustainability and Green Finance

Sustainability is more than a buzzword at ADGM—it’s a priority. Their Abu Dhabi Sustainable Finance Declaration now has 170 signatories, including SMEs and global firms, all committed to integrating ESG principles into finance. For SMEs looking to align with green practices and attract responsible investments, this creates an ecosystem ripe with opportunity.

Empowering UAE Nationals and Building Skills

ADGM’s Academy is making serious moves to nurture local talent. In Q1 2025 alone, they created 800 job placement opportunities and partnered with entities like Arab Youth and the Federal Tax Authority to boost training and innovation. For UAE Nationals and SMEs alike, this means more skilled professionals ready to drive growth and innovation.

Looking Ahead

All signs point to continued momentum. With growing interest from firms across Europe and Asia, ADGM is solidifying its reputation as a gateway to global markets. For SMEs, this is more than just good news—it’s an invitation to be part of a thriving, dynamic financial ecosystem where opportunities are expanding every day.