The Abu Dhabi Global Market (ADGM) has announced significant reductions in licensing fees for non-financial and retail businesses within its jurisdiction. These changes, effective January 1, 2025, are part of ADGM’s transitional arrangements for businesses on Al Reem Island.
ADGM, the international financial centre of Abu Dhabi, oversees both Al Maryah and Al Reem Islands. The new fee schedule reduces the cost of obtaining non-financial business licences from $10,000 to $5,000, with annual renewal fees dropping from $8,000 to $5,000. Retail businesses will also benefit, with new registration fees slashed from $6,000 to $2,000, and renewal fees reduced by 50% to $2,000.
The revised fees will take effect as the current schedule expires on December 31, 2024. Previously, qualifying non-financial and retail businesses on Al Reem Island were exempt from paying ADGM commercial licence fees until October 31, 2024.
In addition to these reductions, there are adjustments in other categories. Fees for financial category licences will increase from $15,000 to $20,000, with renewal fees rising from $13,000 to $15,000. For tech and fintech startups, fees will increase from $1,000 to $1,500 for both new licences and renewals. The fees for the Special Purpose Vehicle (SPV) category remain unchanged at $1,900.
ADGM’s decision followed extensive consultations in 2023 with Al Reem Island businesses.
“We assessed the financial impact on different business categories and previously implemented a fee waiver for qualifying non-financial and retail businesses on Al Reem Island. Building on these efforts, we have now revised our fee structure to include significant reductions for the same categories starting next year. Our aim is to minimise potential disruptions for businesses transitioning to an ADGM licence, enabling them to operate efficiently within our jurisdiction,” said Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority (RA).
