Institutional Mandate and Legal Basis
Abu Dhabi Global Market (ADGM) was established in 2013 by Federal Decree and commenced operations in 2015 as Abu Dhabi’s international financial centre. ADGM operates as a financial free zone on Al Maryah Island with its own independent legal and regulatory framework based on English common law, administered through its own courts and arbitration centre. This distinct legal infrastructure provides international businesses and investors with a familiar, transparent, and predictable regulatory environment separate from the UAE’s civil law system.
Role Within UAE Governance Structure
ADGM functions as an autonomous free zone within the UAE’s federal structure, with its own legislative, regulatory, and judicial authority over financial and commercial activities within its jurisdiction. The centre is governed by a Board of Directors chaired by a senior member of the Abu Dhabi ruling family. ADGM’s three independent authorities – the Registration Authority, the Financial Services Regulatory Authority, and the ADGM Courts – operate collaboratively to provide an integrated ecosystem for business formation, financial regulation, and dispute resolution. ADGM complements the broader UAE regulatory landscape by attracting international financial institutions that require a common law framework.
Key Functions and Activities
ADGM’s Registration Authority handles company formation, licensing, and commercial registration for entities operating within the free zone. The Financial Services Regulatory Authority licenses and supervises banks, asset managers, insurance companies, fintech firms, and other financial service providers according to international regulatory standards. The ADGM Courts and the Arbitration Centre provide English-language dispute resolution services. ADGM has positioned itself as a hub for fintech innovation, sustainable finance, private wealth management, and virtual asset regulation, establishing some of the world’s first comprehensive regulatory frameworks for digital assets.
Relationship to We the UAE 2031 Vision
ADGM directly advances the We the UAE 2031 vision’s goal of establishing the UAE as a leading global financial hub. The centre’s international regulatory framework attracts global financial institutions, asset managers, and fintech companies to Abu Dhabi, deepening the capital markets ecosystem and expanding the UAE’s non-oil economy. ADGM’s sustainable finance initiatives support the vision’s environmental commitments, while its digital asset regulations position the UAE at the forefront of financial innovation. The centre’s role in attracting international talent and expertise also contributes to the vision’s human capital objectives.
Recent Developments and Strategic Initiatives
ADGM has experienced rapid growth in registered entities and licensed financial institutions. The centre has established a pioneering regulatory framework for virtual assets and digital securities, attracting global cryptocurrency exchanges and blockchain companies. ADGM has launched a sustainable finance agenda, including a green bond framework and environmental, social, and governance disclosure guidelines. The centre has expanded its fintech regulatory sandbox and innovation programs and has strengthened its arbitration and dispute resolution capabilities. Partnerships with international financial centres and regulatory bodies have expanded ADGM’s global connectivity and mutual recognition arrangements.
Leadership and Governance
ADGM is governed by a Board of Directors that sets strategic direction for the financial centre. Each of ADGM’s three authorities is led by an independent chief executive or chief justice, ensuring separation between regulatory, commercial, and judicial functions. The Financial Services Regulatory Authority is led by a chief executive with extensive international regulatory experience, and the ADGM Courts are presided over by judges with distinguished careers in English common law jurisdictions. This governance structure ensures that ADGM maintains the independence, expertise, and credibility required to attract global financial business.