By Dr Hamad Al Kaabi*
Comprehensive economic development typically relies on active financial hubs that fuel investments, invigorate the business sector, and expand the scope of diversifying the economy with new sectors based on innovation, knowledge, and advanced technologies. This is precisely what applies today to the capital, Abu Dhabi, which has become one of the world’s largest international financial centres, guided by the Abu Dhabi Global Market Growth Strategy 2023-2027, and driven by clear objectives focused on developing Abu Dhabi’s financial sector as a key contributor to the emirate’s GDP.
Abu Dhabi offers a pioneering model in the role played by sovereign wealth funds in supporting economic diversification—evident in the major projects of the Abu Dhabi Investment Authority (ADIA), Mubadala, and ADQ, which invest billions in non-oil economic sectors.
Innovation is a central pillar of Abu Dhabi’s financial policy, summed up by His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, who stated at the launch of the fourth edition of Abu Dhabi Finance Week that Abu Dhabi is leading efforts to develop capital ecosystems based on innovation and advanced financial technologies through collaboration with international institutions and the exchange of expertise and ideas, in a way that strengthens the global financing and investment landscape.
For nearly half a century, Abu Dhabi has built a remarkable success story in the financial sector—one worthy of retelling. In the capital of the “Impossible is Possible” nation, challenges turn into opportunities, and development paths become catalysts for innovation and leadership in a sector that forms the backbone of sustainable development.
Founded in 1976, the Abu Dhabi Investment Authority became a global investment institution with diversified assets, investing financial resources on behalf of the Abu Dhabi government to generate long-term returns. Today, according to the latest ranking by the SWF Institute, ADIA stands as the fourth-largest sovereign wealth fund in the world.
ADIA’s activities are diverse, reflecting a deliberate strategy to diversify the economy and transition from a reliance on oil to a knowledge-based economy, through investments spanning major global markets as well as emerging markets—steps that guarantee local growth while also driving global economic momentum.
Abu Dhabi has reinforced its strategic vision of economic diversification through bold and unprecedented investments by its sovereign funds, establishing companies focused on artificial intelligence, renewable energy, and sustainable transport, as well as through successful partnerships with major global technology firms.
The Abu Dhabi Global Market (ADGM), established in 2013, serves as an institutional framework for a financial free zone offering a high-quality regulatory environment for financial companies. ADGM provides a supportive business ecosystem, advanced regulatory frameworks, and access to regional and global capital. Notably, ADGM is the only entity in the region that adopts a regulatory framework based on the direct application of English Common Law—enhancing its ability to attract both leading and emerging companies to Abu Dhabi.
In the first half of 2025, ADGM reaffirmed its position as the largest and fastest-growing financial centre in the Middle East and North Africa, with more than 11,000 active licences, and achieving 42% growth in assets under management.
During the same period, ADGM also established itself as the largest international financial centre in the region in terms of the market capitalisation of its listed companies, strengthening its role in supporting Abu Dhabi’s non-oil economy, which grew by 9.1% in the first quarter of 2025.
The first half of the year witnessed significant strategic deals and alliances between some of Abu Dhabi’s largest institutions and companies operating within ADGM—reflecting its pivotal role in enabling global companies to invest and build strategic local and regional partnerships.
In this period, ADGM issued 1,869 new licences, the highest number ever issued in a six-month period since its establishment—representing 47% growth compared to the same period last year, bringing the total number of active licences to 11,128.
On November 14, 2022, Abu Dhabi Finance Week was launched for the first time, becoming a global financial platform that annually brings together an elite group of leaders, experts, and decision-makers from international and regional financial institutions to discuss major transformations in capital markets and explore trends in investment and financial innovation. The event provides a major opportunity for deal-making, launching initiatives, and translating expert insights into a vision for the future of the global financial sector.
The fourth edition of Abu Dhabi Finance Week, held from December 8 to 11 this year, gathered an exceptional group of global participants, including chairpersons and companies managing assets exceeding $62 trillion—more than half of global GDP. The week hosted 800 speakers, all focused on anticipating the future.
Abu Dhabi Finance Week solidified Abu Dhabi’s position as a capital of capital and a globally attractive financial centre characterised by advanced technologies and a highly governed digital business environment—making Abu Dhabi a top destination for major investors and a trusted hub for global companies with significant investments.
Through Abu Dhabi Finance Week, the capital reinforces its forward-looking vision and deep understanding of the future by focusing on artificial intelligence and sustainable finance—making it not only the Capital of Capital, but also the Capital of Innovation.
*The writer is Chief Aletihad News Center Officer