Abu Dhabi’s international financial center ADGM will sharply reduce select fees starting January 1, 2025, it announced on Wednesday.
The revisions are part of ADGM’s transitional arrangements for Al Reem Island businesses.
Next year onwards, ADGM will implement reductions of 50 percent or more for obtaining non-financial and retail licenses within its jurisdiction. This initiative aims to enhance ADGM’s business ecosystem, making it more attractive and accessible for various enterprises.
Revised fee schedule
Under the revised schedule, new registrations within the non-financial category of businesses will see fees reduced from $10,000 to $5,000. In contrast, the annual license renewal fees for the same category will decrease from $8,000 to $5,000.
Fees for the retail category have also been significantly reduced, with new registration fees cut by two-thirds from $6,000 to $2,000. License renewals for the retail category will also see a 50 percent reduction, bringing the annual renewal fees down to $2,000.
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The effective date of the revised licensing fees has been set as January 1, 2025 to align with the expiry of the current transition period, which ends on December 31, 2024. The new fee structure will be applicable across ADGM’s jurisdiction, which includes both Al Maryah and Al Reem Island.
Consultations and feedback
The introduction of the fee revisions is in line with a series of consultations conducted in 2023 by ADGM with a focus group of Al Reem Island businesses to gather feedback and insights related to ADGM’s jurisdiction expansion.
These discussions covered major topics such as the ease of obtaining an ADGM commercial license and the relevant fees. Following these consultations, the Registration Authority (RA) of ADGM conducted a comprehensive review of its fee structure to meet the expectations of its newly expanded jurisdiction and commercial landscape, ensuring a smooth transition for its new business segments.
“To facilitate a seamless transition, ADGM and its Registration Authority have proactively introduced various initiatives, prioritising 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 minimise potential disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within our jurisdiction,” said Hamad Sayah Al Mazrouei, CEO of ADGM RA.
Other fee revisions, exemption
The cut-off date for the previously introduced fee exemption for qualifying non-financial and retail businesses located on Al Reem Island is October 31, 2024.
Fee revisions for other categories include changes in the fee structure within the financial category, increasing from $15,000 to $20,000, and renewals rising from $13,000 to $15,000 for an annual ADGM license. Additionally, there is a minor adjustment for tech and fintech startups, with fees changing from $1,000 to $1,500 for both new and existing license renewals. The fees for the special purpose vehicle (SPV) category remain unchanged at $1,900.
The full fee schedule that will be applicable for new business registrations as well as license renewals from January 1, 2025 will be published in December.
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