Abu Dhabi Global Market: Best International Financial Centre EMEA 2022

The UAE’s capital city, Abu Dhabi, has earned recognition as the “Capital of Capital” for its prominent positioning among investors and business leaders. Abu Dhabi Global Market (ADGM) is the international financial centre (IFC) connecting these global players with regional opportunities. Driven by its robust regulatory ecosystem, ADGM aligns with Abu Dhabi’s economic goals and vision bringing innovation, transformation and diversification in various key sectors by leveraging its strengths and introducing progressive initiative. ADGM notable initiatives in 2022 have made it the fastest growing IFC in the middle east region.

In preparation for the upcoming COP28 in 2023, ADGM has begun to bolster guidelines and frameworks around sustainable finance with a focus on environmental instruments and disclosures. One such initiative has been by the Financial Services Regulatory Authority (FSRA) of ADGM towards introducing an ‘environmental instrument’ as a class of financial instrument, an approach that has allowed carbon offsets to come under its regulatory umbrella.

The innovative regulatory framework has allowed for the world’s first regulated voluntary carbon trading exchange and clearing house, AirCarbon Exchange (ACX) to be established within the IFC. ADGM’s FSRA has also proposed a comprehensive sustainable finance regulatory framework, issued in November 2022, that provides a robust regulatory framework for sustainability-focused products and services, including rules on sustainability-orientated investment funds, managed portfolios and bonds. It also contains a framework for environmental disclosures by companies based in ADGM. ADGM’s proposed framework, which it will finalise in early 2023, aims to enable accelerated growth of a sustainable finance ecosystem in the jurisdiction and support the UAE’s transition to net zero greenhouse gas emissions.

ADGM understands the importance of mobilising private finance to unlock critical infrastructure investment and advance net-zero goals to mitigate further climate catastrophes. Furthermore, ESG and sustainable finance events such as the R.A.C.E (Regulation, Awareness, Collaboration, Ecosystem), part of Abu Dhabi Finance Week (ADFW) 2022 and the fifth edition of Abu Dhabi Sustainable Finance Forum (ADSFF) in mid-January 2023 promoted collaboration between world leaders, entrepreneurs and investors at local, regional and international level. ADGM Academy and its partners have also launched an entrepreneurship initiative to establish an SME hub that provides national and expatriate talent with the tools, training and start-up accelerator programmes that support the development of the tech ecosystem in Abu Dhabi. The CFI.co judging panel has recognised ADGM in several awards programmes and reaffirms its meritocratic successes with the 2022 Best International Financial Centre (EMEA) award.

Commenting on receiving the distinguished award, Dhaher Bin Dhaher Al Mheiri, CEO of ADGM Authority, “We are proud to be recognised as the Best International Financial Centre (EMEA) by the CFI.co judging panel and are grateful for this award. ADGM’s jurisdiction will continue to play the role of a catalyst in supporting Abu Dhabi’s efforts as the ‘Capital of Capital’ while also driving progress towards the rise of its sustainable falcon economy”.

“With 2023 as the ‘Year of Sustainability’ in the UAE, ADGM is committed to building a sustainable financial ecosystem that promotes collaboration between global players and regional opportunities. Our innovative regulatory framework and sustainable initiatives aim to support the UAE’s transition to net-zero greenhouse gas emissions and reflect our dedication to unlocking critical infrastructure investments that advance these goals.”, he further added.