ADGM’s regulatory overhaul aims to cement Abu Dhabi’s fund industry leadership

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) used Abu Dhabi Finance Week to set out a package of regulatory changes intended to support the next phase of rapid growth in the centre’s funds and asset management industry.

According to the original report delivered at Asset Abu Dhabi , the investment-focused strand of the conference , ADGM’s fund sector posted its strongest year yet to the third quarter of 2025, with assets under management (AUM) up 48 percent year‑on‑year and 161 fund and asset managers collectively overseeing 220 funds. The FSRA framed the measures as designed both to align the jurisdiction with international norms and to preserve proportionate oversight for managers of differing scale and strategy.

The authority announced a new periodic reporting requirement for all funds operating within ADGM, calibrated by fund type. The FSRA said the change is intended to improve its ability to identify emerging risk patterns and to underpin “evidence‑based regulation.” Alongside the reporting regime, the FSRA published a Consultation Paper proposing a streamlined regulatory architecture that would create an “Institutional Fund Manager” category for managers serving only institutional investors, simplify licensing and ongoing obligations for smaller managers (defined in the paper as those overseeing US$200 million or less), and clarify rules for employee investment vehicles and foreign fund managers. Market participants have until 30 January 2026 to respond to the Consultation Paper, with a further consultation expected in 2026 as reforms progress.

Emmanuel Givanakis, CEO of the ADGM FSRA, told delegates the package was intended to reflect the market’s evolution. “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,” he said at the event. He added: “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.”

ADGM’s own announcements provide wider context for the FSRA’s timing. The exchange’s media releases show a sustained period of expansion through 2024 and 2025 , including AUM surges of 211 percent in Q1 2024, 215 percent in Q3 2024 and a reported 245 percent increase for 2024 as a whole , and, in Q3 2025, the 48 percent year‑on‑year rise referenced by the FSRA. ADGM also reported broader platform growth in 2025: the number of active licences reached 11,920, with 2,801 new licences issued in 2025, operational entities grew to 3,227 and the workforce expanded to 39,870.

Industry data and the consultation’s proposals point to two clear regulatory priorities: first, improving transparency and data to support supervisory oversight as AUM and fund formation scale; and second, tailoring obligations so that institutional, boutique and cross‑border managers can operate with regulatory clarity and, where appropriate, reduced friction. The proposed Institutional Fund Manager category would appeal to managers structuring strategies aimed principally at pension funds, insurers and other large allocators, while the lighter touch for managers under US$200 million is intended to foster boutique and emerging managers , a segment ADGM has previously targeted through its venture capital fund manager regime.

Market participants are likely to scrutinise how the periodic reporting regime will affect disclosure, data collection and analytical capability, particularly for institutional investors seeking more granular regional transparency. Foreign managers and cross‑border supervisors will be watching proposed changes to oversight expectations, given the Gulf’s growing importance as a destination for sovereign and institutional capital.

The FSRA characterised the reforms as part of a broader push to deepen Abu Dhabi’s role as a global centre for fund formation and asset management while balancing international alignment with proportionate, growth‑oriented rules. According to the announcement, further refinements will be informed by the consultation responses and a second phase of engagement planned for 2026.