Abu Dhabi Global Market (ADGM) will implement substantial reductions of 50% or more for non-financial and retail licenses starting January 1, 2025, according to a recent announcement.
This move supports ADGM’s goal of aiding the transition of Al Reem businesses to its jurisdiction following its 2023 expansion to Al Reem Island.
ADGM states that the revised fees will enhance the business environment, making it more appealing and accessible to various enterprises.
The new fee structure will come into effect at the beginning of next year, aligning with the expiration of the current transition period on December 31, 2024. The full schedule of revised fees for both registrations and license renewals will be released in December.
These changes will apply throughout ADGM’s jurisdiction, including Al Maryah and Al Reem Island.
Breakdown of New Fees
- Non-financial businesses: Registration fees will drop from $10,000 to $5,000, and annual renewal fees will decrease from $8,000 to $5,000.
- Retail businesses: Initial fees will be reduced from $6,000 to $2,000, with annual renewal fees also decreasing to $2,000, a 50% cut.
- Financial businesses: Fees will increase, with new registration fees rising from $15,000 to $20,000, and renewals increasing from $13,000 to $15,000 annually.
- Tech and fintech startups: Fees will see a minor increase from $1,000 to $1,500 for both new and renewed licenses.
- Special Purpose Vehicle (SPV): Fees will remain unchanged at $1,900.
Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority (RA), commented: “ADGM and its Registration Authority have introduced various initiatives to ensure a seamless transition, with our business community at the core of every decision.”
He added: “We evaluated the financial impact on different business categories and previously waived fees for qualifying non-financial and retail businesses on Al Reem Island. Building on these efforts, we have now revised our fee structure to offer significant reductions starting next year.”
Al Mazrouei concluded: “Our objective is to minimize disruptions for businesses moving to an ADGM license, enabling efficient operations within our jurisdiction.”
The previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island will end on October 31, 2024.