Sept 8 (Reuters) - Abu Dhabi's financial hub on Monday

posted a 42% year-on-year increase in registered entities in the

first half of 2025, as global firms look to deepen their

presence in the Gulf and gain proximity to the emirate's

powerful sovereign wealth funds.

The Abu Dhabi Global Market also reported a 42% increase in

its assets under management since last June, with the financial

hub now home to 154 fund and asset managers managing a total of

209 funds. ADGM is a financial free zone built on English common

law.

Abu Dhabi, home to 90% of the country's oil reserves, has

been intensifying its push to diversify beyond hydrocarbons by

leveraging its vast sovereign wealth funds, which collectively

manage nearly $2 trillion - more than any other city worldwide.

The United Arab Emirates has become increasingly attractive

to companies and high-net-worth individuals in recent years,

thanks to its strong post-pandemic economic rebound, tax-free

environment, and ease of doing business.

Key entrants to ADGM in the first half of the year include

Kimmeridge and Fortress Investment Group, with the latter

signing a $1 billion partnership with Abu Dhabi sovereign wealth

fund Mubadala in May.

In August, Lunate, an asset manager steered by UAE national

security adviser and royal family member Sheikh Tahnoun bin

Zayed, acquired a minority stake in hedge fund Brevan Howard,

one of the first global firms to open a headquarters in ADGM in

2023. Sheikh Tahnoun also oversees Abu Dhabi's largest sovereign

wealth fund, ADIA.

ADGM said the number of companies with bases in the centre

reached 2,972 as of June 30, up from 2,381 at the end of

December.

The centre's results come after neighboring Dubai International

Financial Centre reported a 25% year-on-year rise in active

companies, reaching 7,700 at the end of the first half.