DUBAI, Aug 14 (Reuters) - The number of companies that

set up base in Abu Dhabi's financial centre ADGM increased by

31% in the first half of the year as the likes of Morgan Stanley ( MS )

joined a slew of other financial services firms moving to the

oil-rich emirate.

Abu Dhabi has seen banks, hedge funds, family offices,

venture capital firms and crypto traders rushing to the UAE's

capital in recent years as they tap into a wealthy market that

is home to some of the world's biggest sovereign wealth funds

such as ADIA, Mubadala and ADQ.

Some of the big names include Ray Dalio, the billionaire and

founder of hedge fund Bridgewater Associates, who opened a

branch of his family office in the city last year, as well as

peers such as Brevan Howard.

It also attracted banks such as Goldman Sachs ( GS ) and

Rothschild, which have traditionally picked neighbouring Dubai

as their regional hub, but are setting up smaller offices in the

UAE's capital and Riyadh to service their clients.

Unlike global financial centres like Wall Street and

London's Canary Wharf, Abu Dhabi Global Market (ADGM) and other

hubs in the region have also witnessed strong demand for

commercial real estate space and embarked on expansion plans.

ADGM is expanding its area of jurisdiction's footprint

tenfold by adding al-Reem Island to its current location on

al-Maryah Island.

It also issued 1,271 new licences in the first six months of

the year, up 20.5% compared with the same period in 2023, the

financial centre said on Wednesday.

ADGM said companies setting up base in the financial centre

reached a total of 2,088 as of the end of June, while assets

under management rose by 226% compared with the first half of

last year, with 112 fund and asset managers now operating there

and managing 141 funds.

Asset managers that received financial services permissions

(FSP) in the period include France's AXA IM and Morgan

Stanley ( MS ), while companies such as Blue Owl and

Peninsula obtained a preliminary approval.

"The pipeline of entities within the asset management sector

remains strong across hedge funds, private equity, institutional

funds and venture capital firms set to be anchored in ADGM," the

centre added without disclosing a specific number.