ANNUAL REPORT 2021
TABLE OF CONTENTS
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Table of contents
Abu Dhabi Global Market Annual Report 2021
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Abu Dhabi Global Market Annual Report 2021
CHAIRMAN'S FOREWORD
Chairman's foreword
Chapter
CHAIRMAN'S FOREWORD
A year of substantial progress
Chairman's Foreword
With global investors, businesses and professionals gravitating to ADGM in 2021, significant investments were made in our most important asset: our people.
H.E. Ahmed Jasim Al Zaabi
CHAIRMAN, ADGM
Through the provision of an enabling, digital-first financial regulatory and legal framework, Abu Dhabi Global Market (ADGM) delivered a year of substantial progress in 2021, enhancing its international standing and delivering strong commercial growth.
I am especially pleased to see that as MENA’s leading and most digitally empowered International Financial Centre, ADGM successfully deployed innovative new policies and platforms in 2021. These have enhanced venture capital activities, facilitated greater fintech innovation, and forged a burgeoning ecosystem for virtual assets.
Alongside its contribution to Abu Dhabi’s workforce, ADGM will continue to focus on developing key high-growth industry sectors, including banking and financing, derivatives and commodities, aerospace, and the tech start-up community.
Additionally, as a principal driver of inward investment, job creation and economic growth, ADGM will enrich its existing strategy with tech-driven, functional clusters.
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Abu Dhabi Global Market Annual Report 2021
AN INTERNATIONAL TRAILBLAZER
An international trailblazer
Chapter
3
Abu Dhabi Global Market Annual Report 2021
AN INTERNATIONAL TRAILBLAZER
An international trailblazer
Abu Dhabi named the Most Desirable Place to Live and Work outside of New York, London, Hong Kong and Singapore
Abu Dhabi ranked 2nd as an IFC for its Fintech offerings in the GFCI report
7
year of operations at the ADGM
th
36 31
5 places improvement in GFCI Rankings
received international recognition and continued to develop cross border relations
The year 2021 saw a series of remarkable achievements for ADGM and the Financial Services Regulatory Authority (FSRA).
From the launch of the ICE Future Abu Dhabi exchange, which lists Murban futures contracts and related derivatives, to ADGM-registered Fertiglobe completing its initial public offering on Abu Dhabi Securities Exchange, the FSRA has continued to support its stakeholders through enabling regulations.
A leading International Financial Centre
With ADGM now in its seventh year of operations, it is encouraging to see the progress that has been made to cement its reputation as a leading IFC and its recognition as a destination of choice for those seeking to do business with and from the region.
Recognising that continuous innovation is a cornerstone for economic development, ADGM moved through 2021 by leading the development of new solutions to issues faced by the world’s rapidly changing markets and macro dynamics.
READ MORE
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Abu Dhabi Global Market Annual Report 2021
Abu Dhabi was recognised in seeing the highest increase in rating within the region in the Global
Green Finance Index in Middle East and Africa
AN INTERNATIONAL TRAILBLAZER
Growth by numbers
An international trailblazer
OPERATING ENTITIES GROWTH
2017-2021
39
63
102
191
140
2017
2019
2021
2018
2020
4,258
active licenses
8,522
employees on ADGM Square
73%
real estate occupancy level
5+
positions up in GFCI Rankings
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Global Systematically Important Financial Institutions
$33BN
AUM of investment managers
76
funds, 59 domestic & 17 foreign
$5.7BN
bank assets
$220M
insurance gross written premiums
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Abu Dhabi Global Market Annual Report 2021
AN INTERNATIONAL TRAILBLAZER
Venture Capital
An international trailblazer
The thriving start-up and fintech ecosystem of ADGM and the broader UAE have drawn active interest from private equity (PE) and venture capital (VC ) players from around the world. PE and VC activities in ADGM have grown significantly over the years.
VC activities grew fivefold in the last two years despite the COVID-19 pandemic
5x
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Abu Dhabi Global Market Annual Report 2021
AN INTERNATIONAL TRAILBLAZER
Digital infrastructure
An international trailblazer
To further support and facilitate fintech adoption, the FSRA digitalised its regulatory sandbox in the form of the “Digital Lab,” enabling financial innovation and growth in an enhanced model of creative collaboration between regulators, start-up innovators and the financial industry.
ADGM DIGITAL LAB
-
Fintech Solution
-
Dummy FI Data
-
SupTech Tools
-
Consortium Prototype
GLOBAL STARTUPS
INCUMBENTS
REGULATOR PARTICIPATION
OTHER REGULATOR & GOVERNMENT ENTITY
APIs/Middleware
Web Portal
Fintech
InsurTech
WealthTech
RegTech
RiskTech
Bank
Insurer
Broker
Fund Manager
Digital Marketplace
Testing Environment
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Abu Dhabi Global Market Annual Report 2021
STRATEGIC PRIORITIES
Strategic priorities
Chapter
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Abu Dhabi Global Market Annual Report 2021
STRATEGIC PRIORITIES
Strategic Priorities
specialised Clusters to be created
13
Led by the appointment of a new Board of Directors in October 2021, ADGM’s new cluster-based strategy focusses on both the traditional and new age finance sectors and allows the organisation to build specific industry sectors with a very clear go-to-market strategy to attract anchor tenants and build ecosystems.
A new value proposition
The sector-based strategic focus adopted in recent years has successfully led ADGM to become one of the world’s most advanced, diverse and progressively governed financial hubs.
Underpinning the strategy thus far has been a sharp focus on creating an enabling regulatory environment and the deployment of infrastructure tools that have the ability to unlock human potential and commercial success in fintech, finance and business innovation.
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Abu Dhabi Global Market Annual Report 2021
STRATEGIC PRIORITIES
Virtual assets
Strategic Priorities
In tandem with the development of specialised clusters has been a strategic focus on the further development of ADGM’s well-regulated virtual assets ecosystem.
ADGM is already a leading jurisdiction worldwide for the regulation of virtual asset activities with a first-of-its-kind comprehensive framework for facilitating the operation of industry-leading virtual asset players in a business-friendly environment.
VIRTUAL ASSETS REGULATORY FRAMEWORK
RISKS ADDRESSED
the regulatory framework addresses the full range of associated risks
REGULATED ENTITIES
01
MARKET ABUSE
02
FINANCIAL CRIME
03
CONSUMER PROTECTION
04
TECHNOLOGY GOVERNANCE
05
CUSTODY OF CLIENT ASSETS
MTFs (multilateral trading facilities)
INTERMEDIARIES
Custodians
Broker-dealers
Asset managers
Advisors
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Abu Dhabi Global Market Annual Report 2021
STRATEGIC PRIORITIES
Virtual assets
Strategic Priorities
Strategically, a properly regulated virtual asset framework dovetails with ADGM’s focus on the sustainable adoption of blockchain technology, which forms the foundation of the token economy. The volatility seen with virtual assets is a clear indication that there is more work to be done globally to create regulatory frameworks for virtual assets to be mainstream and scalable in the financial services industry.
ADGM's fast-growing virtual asset community continued to flourish in the last 18 months, with tenants such as Matrix, Midchains, Yoshi Markets, Kraken and Seba Bank
More are in the pipeline, with Rain Financial and Binance having obtained in-principle approvals.
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Abu Dhabi Global Market Annual Report 2021
STRATEGIC PRIORITIES
Beyond Abu Dhabi
Strategic Priorities
Since its inception, ADGM has worked to deepen its financial and economic ties with countries outside of the UAE. The FSRA actively engages with regulatory authorities and financial centres in other jurisdictions through its wide network of over 100 bilateral and multilateral Memoranda of Understanding (MoU).
Fostering cross-border collaboration with like-minded partners in other regions is an essential strategic focus for ADGM, delivering bilateral opportunities for inward investment and the nurturing of a sound and sustainable global financial system.
+
bilateral and multilateral (MoUs)
100
EU PUBLIC AFFAIRS PROJECT
READ MORE
Initiated by the FSRA to develop ADGM’s relationship and interaction with the EU and its regulatory organisations.
The project supports the FSRA’s objective to align its regulatory framework with international best practices and enable the opening of further business development between ADGM and the EU.
NATIONAL UNIVERSITY OF SINGAPORE MOU
READ MORE
promoting collaboration in fintech education, research and entrepreneurship
The partnership outlines three key pillars, which include research and publications, technology development and knowledge dissemination within the key themes of Artificial Intelligence, Big Data Analytics, Cybersecurity, Credit, and Sustainable Finance.
CROSS-BORDER DIGITAL TRADE FINANCING PILOT
READ MORE
With Singapore’s Infocomm Media Development Authority (IMDA), and the Monetary Authority of Singapore (MAS)
The pilot was aimed at harmonising the legal recognition of digital documents such as electronic bills of lading (eBLs) across both jurisdictions.
The pilot also served to complement the larger global trade movement by the G7 economies.
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Abu Dhabi Global Market Annual Report 2021
SUSTAINABILITY
Sustainability
Chapter
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Abu Dhabi Global Market Annual Report 2021
SUSTAINABILITY
Sustainability
The ADGM Sustainable Finance Agenda sets out a roadmap to develop a sustainable finance hub that supports capital formation, raising and deployment, as well as the creation and issuance of products to achieve positive economic, social and environmental objectives.
At the forefront of sustainable finance
ADGM is proud to be at the forefront of the sustainable finance industry and remains committed to collaborating with its partners to promote the integration of ESG considerations and sustainable finance into all that it does.
ADGM developed the Sustainable Finance Agenda to align with the UAE’s priorities in this area and will continue to incorporate sustainability principles into its regulatory framework.
READ MORE
The Sustainable Finance Agenda roadmap centres on four pillars:
1
Integration of sustainability into the FSRA’s regulatory framework, building on existing UAE initiatives and global best practices.
REGULATORY INTEGRATION
2
Building cooperation and fostering dialogue with national and international stakeholders to promote green and sustainable investments in the UAE and regionally.
COOPERATION
3
Fostering communication, knowledge and awareness of sustainable finance across the UAE and regionally by hosting events and training through the ADGM Academy.
EDUCATION
4
ECOSYSTEM CREATION
Creation of a robust, sustainable finance ecosystem in ADGM that is home to a diverse pool of institutions and that provides a comprehensive range of innovative product offerings and services that support the capital formation and deployment of financing and investments
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Abu Dhabi Global Market Annual Report 2021
Developing Abu Dhabi as the hub of sustainable finance
Sustainability
SUSTAINABILITY
As an international financial centre, ADGM has been working closely with key partners and stakeholders to collectively contribute to Abu Dhabi and the UAE’s sustainability agenda.
The collaborative efforts among leaders in the Abu Dhabi government, the private sector and ADGM have played an outsized role in moving the economy closer to net-zero carbon emissions. In this way, ADGM remains dedicated to advancing the sustainable finance agenda toward a bright economic future that unleashes opportunities for sustainable and responsible growth.
GUDING PRINCIPLES ON SUSTAINABLE FINANCE
Coordinated the UAE’s first Guiding Principles on Sustainable Finance
ABU DHABI SUSTAINABLE FINANCE DECLARATION
Establishing a vibrant sustainable finance industry
SUSTAINABLE FINANCE WORKING GROUP (SFWG)
Coordinating ideas and initiatives on sustainable finance.
STATE OF SUSTAINABLE FINANCE REPORT
Highlighting collective achievements of stakeholders
HIGH-LEVEL STATEMENT
A set of commitments by the SFWG towards UAE’s net-zero
ABU DHABI SUSTAINABLE FINANCE FORUM (ADSFF)
Explores emerging themes and showcase solutions
POSTGRADUATE CERTIFICATION IN SUSTAINABLE FINANCE
Developing the talent pool in the banking and finance industry
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Abu Dhabi Global Market Annual Report 2021
By January 2022, ADGM had achieved a ‘carbon-neutrality’ status by offsetting its entire 2021 carbon emissions as an organisation.
SUSTAINABILITY
Sustainability
Looking ahead, ADGM will continue to foster meaningful collaborations with local and global businesses and play its part in supporting the UAE’s Net-Zero by 2050 initiative, which is in line with the country’s Principles of the 50 blueprints.
Building a Sustainability Ecosystem
In 2021, ADGM developed and implemented a series of reforms and policies designed to accelerate its impact on building a progressive and more sustainable economy.
To obtain its carbon-neutral position, ADGM purchased and retired all its 2021 carbon credits via the Rimba Raya project, one of the highest-rated REDD 1+ projects globally, based in Indonesia. This initiative was facilitated by AirCarbon Exchange, a digital carbon trading exchange based in ADGM Square.
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Abu Dhabi Global Market Annual Report 2021
ADGM HUMAN RESOURCES
ADGM Human Resources
Chapter
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Abu Dhabi Global Market Annual Report 2021
T
HE REAL ASSET OF ANY ADVANCED NATION IS ITS PEOPLE, ESPECIALLY THE EDUCATED ONES, AND THE PROSPERITY AND SUCCESS OF THE PEOPLE ARE MEASURED BY THE STANDARD OF THEIR EDUCATION.
The late Sheikh Zayed Bin Sultan Al Nahyan,
Founding Father of the UAE
ADGM HUMAN RESOURCES
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Abu Dhabi Global Market Annual Report 2021
ADGM HUMAN RESOURCES
ADGM Human Resources
Equipped with extensive support and a sharp focus on personal and professional development, ADGM employees are given the tools they need to contribute to the development of a companywide mission to push boundaries at an international level – and build exciting careers.
+
nationalities
40
Developing talent for ADGM and our economy
ADGM is a diverse and inclusive organisation with around 40 nationalities, reflecting the cultural diversity of the ADGM community and the broader UAE market.
As Abu Dhabi’s Financial Centre and as a respected global hub, ADGM leverages its unique role as a local semi-government business underpinned by a common law jurisdiction to attract and nurture the best talents, drawing from international perspectives to create global best practices.
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Abu Dhabi Global Market Annual Report 2021
ADGM HUMAN RESOURCES
A sharp focus on personal and professional development
ADGM Human Resources
2
1
WELL-BEING AND ENGAGEMENT
FLEXIBLE STAFFING
3
LEARNING & DEVELOPMENT PROGRAMMES
ADGM measures its engagement & well-being through an annual engagement survey and through KPIs
100+
top talent assessed and developed in the Al Gayed programme
ADGM is now structured that provides opportunities for freelancers and external consultancies in a way that delivers agility, resilience, and the ability to call upon the very best skills inside and outside of the organisation
READ MORE
From its state-of-the-art training facilities in the heart of ADGM, the 70:20:10 development model supported the professional training and development of an exceptional new cohort of UAE Nationals, fresh graduates and senior executives in 2021.
Through its two National Development Programmes – the Emirati Judge Programme and the Al Yah Graduate Development Programme – a number of nationals embarked upon individual development and qualification plans.
READ MORE
ADGM was one of the first organisations in Abu Dhabi to introduce a flexible staffing and working policy.
This includes the introduction of remote working, an option that is still available to employees after the government’s introduction of the 100% return to office mandate.
READ MORE
The physical and psychological well-being of ADGM employees has been a core focus for ADGM since its inception – as is evidenced by the rapid response to the onset of the pandemic and the organisation’s work throughout 2021.
Following the pandemic, ADGM has continued to support its employees through sports days, team-building activities, and engagement with key stakeholders specifically aimed at enhancing the organisation’s culture of well-being.
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Abu Dhabi Global Market Annual Report 2021
ADGM ACADEMY
ADGM Academy
Chapter
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Abu Dhabi Global Market Annual Report 2021
ADGM ACADEMY
Supporting Abu Dhabi's Economic Vision 2030
ADGM Academy
Delivering on its remit as a leading provider of financial research, training, education and literacy for Abu Dhabi and the MENA region, ADGM Academy (ADGMA) made significant progress in cultivating well-qualified, financially literate professionals in 2021 across Abu Dhabi and the ADGM community.
courses conducted since 2018
100
industry participants
3,000
+
UAE Nationals welcomed
500
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Abu Dhabi Global Market Annual Report 2021
ADGM ACADEMY
ADGM Academy
ADGM collaborates with ADGMA on an annual basis to build an analysis of real-time learning needs. This intelligence helps ADGMA to develop a culture where ambitions thrive through relevant training solutions in both classroom and virtual learning formats in partnership with competitive training providers.
ADGMA plays a vital role in developing financial programmes, learning solutions and tailor-made initiatives to build up Abu Dhabi’s knowledge economy across eight areas.
ADGMA Programmes
1
PROGRAMMES – CHANGING BANKING & FINANCE SERVICES LANDSCAPE
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National Development Programmes
-
Artificial Intelligence in Finance Programme
-
Certificate in Sustainable Finance
-
Abu Dhabi Digital Program
2
EMPLOYABILITY – PRIVATE PUBLIC PARTNERSHIP
ADGM Academy has partnered with:
-
the Human Resources Authority and Mubadala under the initiative “Together 4 Abu Dhabi" (to provide nearly 400 Emirati Nationals with a comprehensive training and development program followed by employment within the private sector)
-
the Human Resources Authority to create the very first Financial Job Centre (focused on a structured training and employment process with the intention to employ 1,000 Emirati nationals in various private sector fields)
-
NAFIS, to provide Emirati nationals with international qualifications as part of the upskilling requirements needed at a Federal Level
ADGMA has also renewed its commitment to HRA on the National Development Programs and expanded its scope to now include the Insurance sector
3
RESEARCH CENTRE - INNOVATING THROUGH APPLIED RESEARCH
In partnership with Cambridge Centre for Alternative Finance, ADGMA launched the first of its kind applied financial research centre, aiming to provide qualified support to the local policymakers and regulators and play a vital role in upskilling the local educational curriculum
4
CONTINUOUS PROFESSIONAL DEVELOPMENT (CPD)
ADGM Academy has developed over 15 CPD accredited courses which benefit existing employees to ensure continuous professional development in their respective fields of focus
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Abu Dhabi Global Market Annual Report 2021
ADGM ACADEMY
ADGM Academy
ADGM collaborates with ADGMA on an annual basis to build an analysis of real-time learning needs. This intelligence helps ADGMA to develop a culture where ambitions thrive through relevant training solutions in both classroom and virtual learning formats in partnership with competitive training providers.
ADGMA plays a vital role in developing financial programmes, learning solutions and tailor-made initiatives to build up Abu Dhabi’s knowledge economy across eight areas.
ADGMA Programmes
5
OPERATIONAL EXCELLENCE (ISO AND INVESTOR IN PEOPLE)
In only two years, ADGMA was awarded two leading certifications – (1) Investor in People and (2) ISO certifications on its policies, procedures and process, affirming ADGMA’s commitment to excellence
6
DIGITAL ACADEMY
ADGM Academy continues to develop its digital learning experience and has partnered with leading international educational institutions to now offer more than 5,000 curated e-learning courses on the Academy Learning Management System (LMS)
7
PARTNERSHIPS
ADGMA’s model is built on partnering with leading local and international universities and international professional chartered associations. These partnerships contribute to the employability, re-skilling and upskilling of professionals
8
COMMUNITY SOCIAL RESPONSIBILITY (CSR)
ADGMA offers different scholarships to accommodate candidates who may be faced with financial difficulty. These scholarships and financial grants will sustain professionals who seek to expand their skills and build their careers within the sector.
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Abu Dhabi Global Market Annual Report 2021