News

• Enhancements align with Abu Dhabi’s growing role as a global hub for fund and asset management, reflected in strong 2025 sector performance of a 48% year-on-year increase in AUM.

As part of Asset Abu Dhabi, during the fourth edition of Abu Dhabi Finance Week, the Financial Services Regulatory Authority (FSRA) of ADGM outlined sustained growth across its fund and asset management sector and highlighted recent enhancements to its Funds regulatory framework. 

Since ADGM’s inception, the fund and asset management sector has been central to the financial centre’s success as a leading international financial centre. This momentum strengthened further in 2025,  with Q3 2025 figures demonstrating sustained momentum across key metrics, including a 48% year-on-year increase in Assets under Management (AUM) and a total of 161 Fund and Asset Managers overseeing 220 Funds, underscoring ADGM’s growing global relevance.

Aligned with this trajectory, the FSRA has continued to enhance its regulatory framework to reinforce ADGM’s position as a premier international hub for fund and asset management, while ensuring that key risks are mitigated and that Funds and Fund Managers are regulated in a proportionate manner. The 2025 enhancements include:

• Implementation of a periodic reporting requirement for Funds; and
• Publication of a Consultation Paper (CP) outlining several significant enhancements to the FSRA’s framework for Funds and Fund Managers, including measures to
  • streamline regulatory requirements for small Fund Managers and
  • the creation of a new category of Fund Manager- an Institutional Fund Manager.

The new periodic reporting requirement for Funds is tailored to the type of Fund and further aligns the FSRA’s regulatory framework with international standards and best practices. It will enable the FRSA to identify emerging trends and risks within the fund and asset management sector and support the continued development of its regulatory framework in a proportionate, evidence-based manner.

The proposals outlined in the CP were developed as part of a comprehensive review of the FSRA’s Funds framework and include the following:

• Institutional Fund Managers – an innovative new category of Fund Manager offering a streamlined regulatory framework for Fund Managers of Funds exclusively targeting institutional investors, recognising Abu Dhabi’s status as the ‘Capital of Capital’. The CP also seeks views on extending the framework to asset managers managing institutional Funds.
• Smaller Fund Managers – a streamlined regulatory framework for Fund Managers managing USD $200 million or less, with key exceptions building upon the success of the FSRA’s Venture Capital Fund Manager framework.
• Employee Investment Vehicles – facilitating employee investment in private Funds.
• Foreign Fund Managers – revising the existing regulatory framework for Foreign Fund Managers to enhance safeguards.

The consultation is open for feedback until 30 January 2026, with a further consultation on additional enhancements planned for 2026.

Emmanuel Givanakis, CEO of the ADGM FSRA said: “The recent enhancements and our proposals going forward aim to not only further align our regulatory framework with international peers but also  reflect a more proportionate approach based on the nature of our fund management ecosystem. Since ADGM’s inception in 2015, the jurisdiction has established itself as a significant international hub for Fund Managers, with over 161 Fund Managers now established here, managing over 220 Funds. These changes aim to ensure that ADGM remains a preferred jurisdiction for Fund Managers seeking to operate within a well-regulated, yet progressive, environment."