In recent years, the story of the Abu Dhabi Global Market (ADGM) has transformed from “just another free zone” into a vibrant magnet for entrepreneurs, especially in the tech and fintech spaces. Located on the shores of Abu Dhabi’s Al Maryah Island (and now extended to Al Reem Island) under a modern English common-law jurisdiction, ADGM is steadily becoming one of the most compelling business hubs in the Middle East. ADGM has gained global recognition as a global hub within the MENA region, attracting international attention for its strategic importance in finance and innovation. As a result, ADGM is increasingly seen as a preferred destination for entrepreneurs and financial firms seeking to establish a presence in a rapidly growing market.
Below I explore why entrepreneurs are choosing ADGM — and spotlight one of the key players inside its ecosystem, Sky Hub, which is helping make this transition smoother.
1. What’s driving the momentum at ADGM
A. Regulatory & legal foundation built for the modern era
ADGM operates under an independent jurisdiction applying English common law, forming a robust legal framework that ensures transparency, streamlines licensing processes, and provides flexibility for international founders and investors.
The comprehensive regulatory framework at ADGM, especially for fintech, digital assets, and tech startups, is more forward-leaning than many alternatives in the region and actively supports innovation.
For example, the “Tech Startup Licence” at ADGM offers incentives—visas per desk, subsidies, and access to capital via its ecosystem.
The registration authority at ADGM oversees the registration process for entities, ensures compliance with policies and frameworks, and facilitates regulatory procedures for financial and legal entities within the centre.
B. Infrastructure, place, and connectivity
ADGM’s office and business districts on Al Maryah Island and Al Reem Island feature high-quality, modern commercial spaces in a purpose-built environment, with significant investment in digital infrastructure to support business operations and innovation.
Abu Dhabi offers a high standard of living, good connectivity, and access to talent — all significant when you’re thinking global.
C. A startup-friendly ecosystem
According to recent commentary, ADGM is being described as “the UAE’s most startup-friendly free zone,” due to flexible regulation, streamlined setup, and access to networks. The increasing number of businesses and operational entities choosing ADGM further highlights its appeal and the expansion of its financial ecosystem.
The presence of innovation clusters such as Hub71 (based inside ADGM) and other support initiatives means entrepreneurs are not alone. The growth of ADGM's workforce continues to support and strengthen the ecosystem.
D. Cost, saturation and strategic advantage
Compared to some older hubs (for example, in Dubai), ADGM offers a less saturated market, and perhaps slightly more favorable cost structures — while still giving access to capital, talent and global logistics. ADGM also supports the UAE's diversified economy by encouraging private sector growth and innovation within a robust regulatory framework.
For many founders, the proposition is: “we’ll have the freedom to build something new, rather than being boxed into the legacy ways of doing business.” ADGM serves as a regional base for entrepreneurs seeking to expand across the Middle East, attracting global firms and supporting economic diversification.
2. The entrepreneurial experience on the ground
Here’s how the behind-the-scenes reality plays out, based on voices within ADGM:
Founders at ADGM talk about meeting regulators, investors, and mentors casually over coffee — the “ecosystem” is tangible, not just on paper.
Coworking spaces, flexible office models, virtual offices, and startup-friendly leases make early-stage setups feasible — something that helps when you’re beyond idea-mode but not yet large. These options support efficient business operations and management, allowing companies to adapt as they grow.
For many tech startups and family offices, the ability to hire globally, to work remotely permitted by the regulations, and to be part of a community makes a difference. For example: “A fintech startup scaled from concept to product across three continents while based in ADGM.”
The work-life or culture angle: ADGM (and Abu Dhabi) allows a different pace than some high-hustle locations; this is attractive to founders who want serious but sustainable growth.
3. Spotlight: Sky Hub – A gateway for entrepreneurs in ADGM
One of the key enablers in the ADGM ecosystem is the coworking/business-service provider Sky Hub, located at Sky Tower, Al Reem Island, Abu Dhabi.
Here’s what makes Sky Hub noteworthy:
Flexible workspace options: From hot-desks / coworking memberships through to dedicated offices and virtual office solutions — this flexibility is crucial for startups who want to scale without overcommitting.
Support with compliance & licensing: Sky Hub explicitly mentions support for ADGM Trade License assistance, legal advisory partnerships, and FSRA-regulated entities. Sky Hub also assists with obtaining an ADGM licence, enabling companies to formally establish themselves and access Abu Dhabi’s financial and investment ecosystem. For many founders, navigating these administrative/regulatory layers is non-trivial — so this support is valuable.
Community & network effects: Sky Hub emphasises community events (fintech workshops, networking, AI innovation webinars) and a vibrant environment for entrepreneurs, including asset managers seeking new investment opportunities in real estate, emerging markets, and innovative sectors. This adds more than just physical space.
Location & value: Being on Al Reem Island positions Sky Hub close to ADGM’s financial district yet in a setting that supports growth. And from listings, pricing is competitive (e.g., coworking starting from AED 800/month) for the region.
Why this matters: For a startup, gaining presence in ADGM often means two things: (1) having a credible business address + office setup, and (2) access to the ecosystem (regulators, investors, partners, talent). Sky Hub serves as a practical bridge into that world. It helps reduce friction and cost, especially for early-stage firms.
4. What founders need to keep in mind (and what next)
While ADGM offers many advantages, entrepreneurs should also be aware of the challenges and strategic considerations:
Clarity of business activity: Make sure your business model aligns with ADGM’s required licence category. For example, tech-startup license vs general trading vs financial services. ADGM
Office address requirement: Even for “virtual office” setups, you often need a registered address and lease/space requirement in ADGM. Providers like Sky Hub help with this.
Compliance & regulation: Particularly for fintech / digital assets, while ADGM is progressive, you still need to satisfy the requirements of the regulator (Financial Services Regulatory Authority – FSRA). ADGM's regulatory environment is designed to support sophisticated financial activities such as wealth management and hedge funds, ensuring robust oversight for these sectors.
Growth vs cost trade-off: Starting lean is possible, but as you scale and hire internationally / need deeper regulation/license, costs and complexity rise. Having a partner workspace that can scale (like Sky Hub) is a plus.
Ecosystem leverage: Don’t just set up, but engage — join events, connect with investors, use the network. Institutional investors and firms with significant assets under management, including those active in wealth management and hedge funds, are key participants in the ADGM ecosystem. Ultimately, the value of ADGM lies in its ecosystem, not just its jurisdiction.
What’s next?: With global shifts in tech (AI, digital assets, Web3) and regional ambition strong, ADGM is likely to keep evolving. Being early in such a jurisdiction can offer a strategic advantage.
5. Final thoughts
If you’re an entrepreneur or founder looking at the UAE region, the question used to be “Dubai or Abu Dhabi?” Now it increasingly includes “Should I consider ADGM?” Because ADGM offers a compelling package: modern infrastructure, legal/regulatory stability, a startup-friendly ecosystem, and increasingly affordable entry points.
In recent years, ADGM's growth has been remarkable, with a significant cent rise and cent increase in assets under management during the first quarter and first half of the year, compared to the same period a year earlier. The presence of global financial institutions, global asset managers, global investors, and global firms such as BNP Paribas and Morgan Stanley has played a key role in ADGM's growth, reinforcing its position as a preferred destination for international business. ADGM maintains a strong focus on sustainable finance, with a robust regulatory framework that positions it as a leading financial center and global hub for investment and innovation. The emirate's commitment to development is evident through the Abu Dhabi Investment Office and the way ADGM introduced new initiatives to attract global players and support the region's diversified economy. As the UAE's capital, Abu Dhabi's status as a leader in the MENA region is clear, and it continues to emerge as a global force in global finance and the global economy, driving the future of Abu Dhabi's financial and economic landscape.
And providers like Sky Hub make the practical steps of accessing this ecosystem more manageable: you’re not just renting a desk, you’re plugging into the hub of a jurisdiction that wants you to succeed.