The Abu Dhabi Global Market (ADGM) is launching a new initiative to further support the smooth transition of businesses from Al Reem Island to ADGM following its recent expansion to the island last year. ADGM, the UAE capital's international financial center, has unveiled major updates to its licensing fee structure to support businesses. Effective 1 January 2025, ADGM will significantly reduce fees for non-financial and retail licenses by 50% or more. This initiative is designed to improve the ADGM's business environment, making it more appealing and accessible to a wider range of enterprises.
The new fee structure applies across ADGM's jurisdiction, including Al Maryah and Al Reem Island. The full fee schedule that will be applicable for new business registrations as well as license renewals from 1 January 2025, will be published by ADGM in December 2024.
Extract of the proviso inserted:
The key aspects of this amendment are mentioned below:
| Sector | Fee Type | Previous Fee (USD) | New Fee (USD) |
| Non-financial Sector | New Registration Fee | 10,000 | 5000 |
| Annual Renewal Fee | 8000 | 5000 | |
| Retail Sector | New Registration Fee | 6000 | 2000 |
| Annual Renewal Fee | 4000 | 2000 | |
| Financial Sector | New Registration Fee | 15,000 | 20,000 |
| Annual Renewal Fee | 13,000 | 15,000 | |
| Tech and Fintech Startups | New and Renewal Fees | 1000 | 1500 |
| Special Purpose Vehicle (SPV) | Fees | 1900 | 1900 |
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Our Comments ADGM has made several revisions to its licensing and fee structures after a comprehensive consultation with businesses on Al Reem Island, which aimed to collect feedback directly from companies to better understand their concerns and requirements. The updated regulations are intended to ease the transition for businesses operating within ADGM's jurisdiction, offering a more supportive framework that aligns with the ongoing growth and diversification of the commercial landscape in Abu Dhabi. The adjustments also reflect ADGM's commitment to fostering a business-friendly environment that not only supports the existing enterprises but also attracts new investments. By tailoring these changes to the needs of the local business community, ADGM aims to ensure that its regulatory approach remains competitive and conducive to long-term business success. The official notice can be accessed here. |
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