The Abu Dhabi Global Market (ADGM) has seen an exceptional surge in licensed financial institutions, surpassing 420 entities as of October 1, 2026. Additionally, around 160 organisations are currently navigating various stages of the licensing process. Officials from the ADGM revealed during the Abu Dhabi Global Market Media Forum that the courts are expected to handle approximately 1,200 cases this year.
Financial licenses within the ADGM have experienced impressive growth, ranging from 20% to 25% compared to 2025. Last year marked a record in the centre’s history, with the highest number of annual licenses issued by both the ADGM and the Financial Services Regulatory Authority, a trend that is projected to continue over the remaining months of this year.
Lawrence Paramasivam, the Executive Director for Policy and Legal Affairs at the Financial Services Regulatory Authority, noted in an interview with Emirates News Agency (WAM) that the list of entities seeking or receiving preliminary approvals includes about 160 organisations. A preliminary approval is a critical step preceding final licensing. Paramasivam characterised the ongoing growth of licensing as remarkable.
Regulatory Framework Supporting Financial Institution Expansion
The regulatory structure of the ADGM encompasses departments focused on licensing, supervision, combating financial crimes, and cybersecurity. It also includes an enforcement division responsible for applying rules and penalising violations. These divisions aim to protect investors, enhance market integrity, and ensure financial stability.
The Authority is currently reviewing its regulatory framework in the insurance sector, supporting ADGM’s ambition to establish a reinsurance hub within the UAE and the wider region. Reinsurance is a process where specialised firms provide insurance for insurance companies themselves, effectively spreading large risks. The review aims to align local regulations with international standards, including those set by the International Association of Insurance Supervisors. Paramasivam highlighted that international reinsurance entities have expressed interest in establishing headquarters within the centre.
In the digital assets sector, particularly regarding cryptocurrencies, more than 25 entities are actively engaged in virtual asset activities from the ADGM, operating under the regulatory framework launched by the Authority in 2018.
Paramasivam explained that the Authority is employing artificial intelligence to support licensing, supervision, and enforcement processes, emphasising that AI plays a supportive role. He affirmed that the centre’s enforcement approach has remained consistent since its inception 11 years ago, with actions tailored to the nature of violations, ranging from fines to stricter measures.
Small Claims on the Rise
Small claims have emerged as the most prominent category of cases in ADGM courts for 2026, accounting for 419 claims. This is followed by commercial and civil cases totalling 144, real estate disputes at 141, and labour-related cases at 44.
As of October 14, 2026, the courts of the ADGM recorded 882 first-instance cases and 21 appeals, with an overall expectation to review 1,200 cases within the year.
Linda Fitz Alan, Chief Executive of the ADGM Courts, explained that the courts apply English common law directly. This judicial system, built on precedent, allows prior decisions to influence subsequent cases, providing a familiar legal framework for international investors, similar to that of courts in London, Singapore, Hong Kong, and Sydney.
The jurisdiction of the courts encompasses disputes related to ADGM entities and the contracts arising from them. Moreover, individuals and businesses have the option to select the ADGM courts or arbitration for dispute resolution, even if they are not registered within the centre.