Abu Dhabi Global Market (ADGM), the international financial center located in the UAE’s capital, has announced a major reduction of 50% or more in obtaining non-financial and retail licenses within its jurisdiction. These revisions supplement the ongoing transitional arrangements for Al Reem Island businesses in Abu Dhabi.
The revised fee schedule stated that new registrations under the non-financial category of businesses will see fees reduced from $10,000 to $5,000. Alternatively, the annual license renewal fees for the same category will decrease from $8,000 to $5,000. The retail sector will also see fee reductions as low as two-thirds from $6,000 to $2,000 License renewals for the retail category will also see a 50% reduction, bringing the annual renewal fees down to $2,000. These revisions aim to “enhance ADGM’s business ecosystem, making it more attractive and accessible for various enterprises.”
The revised licensing fee breakdown will come into effect on January 1, 2025, and will be applicable across ADGM’s jurisdiction, which includes Al Maryah and Al Reem Island. According to Hamad Sayah Al Mazrouei, CEO of ADGM RA, “To facilitate a seamless transition, ADGM and its Registration Authority have proactively introduced various initiatives, prioritizing our business community at the core of every decision. Our aim is to minimize potential disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within our jurisdiction.”
The announcement also stated October 31, 2024, as the cut-off date for previously introduced fee reductions and exemptions for qualifying non-financial and retail businesses on Al Reem Island. Tech startups will incur a minor increment of $1500 from $1000 in licensing fees and renewals, as outlined in the latest ADGM announcement. The Special Purpose Vehicle (SPV) category renewal structure remains unchanged, costing $1,900.
The total fee schedule for new business registrations and license renewals starting January 1, 2025, will be published in December.
