ADGM Expands Jurisdiction with Al Reem Island, Adding 1,100+ Businesses

Abu Dhabi Global Market (ADGM) has successfully expanded its jurisdiction to include Al Reem Island, integrating over 1,100 entities into its regulatory framework. This strategic move, formalised by UAE Cabinet Resolution No. 41 in April 2023, has significantly increased ADGM’s geographic footprint, positioning it as one of the world’s largest concentrated financial districts.

Seamless Transition for Al Reem Island Businesses

To facilitate a smooth transition for businesses operating on Al Reem Island, ADGM introduced an incentive initiative in March 2024. This programme exempts qualifying non-financial and retail businesses from commercial licence fees until 31st October 2024, easing their integration into ADGM’s jurisdiction. Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, emphasised the importance of this initiative, stating, “The seamless transition of existing businesses on Al Reem Island remains a top priority for ADGM.”

ADGM has also established information centres within Shams Boutik Mall and Addax and Tamouh Towers to provide on-ground support and guidance to businesses during this transition period.

Significant Growth and Economic Impact

The integration of Al Reem Island has expanded ADGM’s jurisdictional area to approximately 14.38 million square metres, a tenfold increase from its original size. This expansion has attracted a diverse range of international companies, contributing to a 31% increase in company registrations in the first half of 2024. Notable financial institutions, including Morgan Stanley, have established a presence within ADGM, reflecting Abu Dhabi’s growing appeal as a global financial hub.

The residential sector on Al Reem Island has also experienced a surge, with occupancy rates exceeding 92% by the end of June 2024. This growth underscores the island’s attractiveness as a prime location for both businesses and residents, further solidifying Abu Dhabi’s position as a leading international financial centre.

ADGM’s strategic expansion and proactive support measures highlight its commitment to fostering a dynamic and business-friendly environment, driving economic diversification and reinforcing Abu Dhabi’s status on the global financial stage.