Abu Dhabi Global Market (ADGM) Reveals New Licensing Fee Structure: What Businesses Need to Know

The Abu Dhabi Global Market (ADGM) has announced various changes to its licensing fee structure as part of its transition strategy for businesses on Al Reem Island. The ADGM will introduce significant fee reductions—potentially up to 50% or more—for non-financial and retail licenses within its jurisdiction. This strategic move is designed to enhance ADGM’s business environment and to attract a broader range of enterprises.

These updated fees are set to go into effect on January 1st, 2025, aligning with the end of the current transition period on December 31, 2024. The new fee schedule will apply across ADGM’s jurisdiction, including both Al Maryah and Al Reem Islands.

The previously announced fee exemption for qualifying non-financial and retail businesses on Al Reem Island will end on October 31st, 2024.

Non-Financial and Retail Licenses:

Under the new fee structure, the cost for registering a new Non-Financial Business will be reduced from USD 10,000 to USD 5,000. The annual renewal fees for such licenses will also decrease from USD 8,000 to USD 5,000. Retail Business registration fees will also be cut down from USD 6,000 to USD 2,000, while the annual renewal fees for Retail Licenses will be halved, bringing them down to USD 2,000.

Proposed Fee Revision for Non-Financial and Retail Licenses are as follows:

The fee reductions are based on consultations the ADGM authorities held with businesses on Al Reem Island and are aimed at simplifying the process of acquiring an ADGM commercial license and adjusting the associated fees.

Financial Licenses:

Changes have also been made to the fee structure within the financial category. Financial licenses will increase from USD 15,000 to USD 20,000, with annual renewals rising from USD 13,000 to USD 15,000. Additionally, tech and fintech startup licenses will increase from USD 1,000 to USD 1,500 for both new and existing license renewals. However, fees for the Special Purpose Vehicle (SPV) category will remain at USD 1,900.

Revised Fee Structure for Financial Licenses are as follows:

The ADGM Registration Authority (RA) has revised its fee structure to better suit the needs of its expanded jurisdiction and commercial landscape. Hamad Sayah Al Mazrouei, CEO of ADGM RA, remarked, “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. Our aim is to minimise potential disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within our jurisdiction.”

The detailed fee schedule outlining the new rates for business registrations and license renewals, effective January 1st, 2025, will be published in December.

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ABS Partners Legal Consultants is committed to guiding clients through the process of obtaining licenses within the Abu Dhabi Global Market (ADGM). Our expert team offers comprehensive support in understanding the revised fee schedules, ensuring compliance, and optimizing the licensing process according to the latest regulations. Whether you are seeking to register a new business or renew an existing license, ABS Partners is dedicated to providing the expertise and strategic advice needed to facilitate a smooth transition and help your business thrive within the ADGM framework.