Abu Dhabi Global Market (ADGM), a new international financial centre (IFC) and freezone on Al-Maryah Island in the UAE’s capital, has commenced operations.

It is accepting financial services licence applications from 21 October.

The regulations for the new IFC aim to be consistent with international standards in the asset management, banking and insurance industries. It carried out consultations with the financial sector over the summer.

The ADGM courts are still consulting on its regulations and appointing judges.

“We have been steadfast in our strategy of building an IFC based on collaboration and input from local, regional and international institutions to ensure we offer a jurisdiction that provides businesses what they need and want in order to grow and succeed,” said Ahmed Ali al-Sayegh, chairman of ADGM, in a statement.

“We have established ADGM with an initial core focus based on Abu Dhabi’s strength of wealth management, asset management and private banking. However, we have the flexibility to grow into a broad-based IFC, attracting a wide spectrum of financial institutions who will choose ADGM as their home. This will cement ADGM’s global position and ensure we contribute to the global ecosystem of international markets and business networks.” 

However, ADGM will face heavy competition from the well-established Dubai International Financial Centre (DIFC), which has taken on the role of a financial hub for the region and a gateway for the rest of the world.