The Abu Dhabi Global Market (ADGM), the UAE capital’s international financial hub, has announced significant changes to its licensing fee structure. These modifications are part of its transitional plans for businesses on Al Reem Island.
From 1 January 2025, ADGM will implement substantial fee reductions of 50 per cent or more for non-financial and retail licenses within its jurisdiction. This measure aims to improve ADGM’s business environment, making it more appealing and accessible for a wide range of enterprises.
The updated fee structure will be applicable throughout ADGM’s jurisdiction, covering both Al Maryah and Al Reem Island.
Fee reductions
Under the new fee schedule, registration fees for non-financial businesses will decrease from $10,000 to $5,000. Annual license renewal fees for the same category will fall from $8,000 to $5,000.
Retail businesses will also benefit from considerable reductions, with new registration fees cut by two-thirds from $6,000 to $2,000.
Annual license renewals for retail businesses will see a 50 per cent reduction, lowering the fees to $2,000.
Fee increases
In contrast, the fee structure for financial businesses will increase, with new registration fees rising from $15,000 to $20,000 and annual renewals from $13,000 to $15,000.
Tech and fintech startups will face a slight fee adjustment, with both new and renewal fees changing from $1,000 to $1,500. Fees for the Special Purpose Vehicle (SPV) category will remain at $1,900.
The revised licensing fees will come into effect on 1 January 2025, aligning with the end of the current transition period on 31 December.
Consultation and review
These fee revisions follow a series of consultations conducted in 2023 by ADGM with a focus group of Al Reem Island businesses to gather feedback on the expansion of ADGM’s jurisdiction.
These discussions addressed key topics such as the ease of obtaining an ADGM commercial license and the related fees.
Subsequently, the Registration Authority (RA) of ADGM conducted a thorough review of its fee structure to align with the expectations of its expanded jurisdiction and commercial landscape, ensuring a smooth transition for new business segments.
Hamad Sayah Al Mazrouei, the CEO of ADGM RA, stated, “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. 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 minimize potential disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within our jurisdiction.”
The previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island will end on 31 October 2024. The full fee schedule for new business registrations and license renewals from 1 January 2025 will be published in December.
