The Abu Dhabi Global Market (ADGM) has announced reductions of 50 per cent or more for obtaining non-financial and retail licenses within its jurisdiction, effective from January 1, 2025. The international financial center, which covers Al Maryah and Al Reem Island, has lowered fees for new registrations and license renewals in the non-financial category. The retail category will also see significant reductions in fees with new registration fees being cut from $6,000 to $2,000 and license renewal fees reduced to $2,000.
Businesses located on Al Reem Island were previously exempt from paying any fees for obtaining ADGM commercial licenses until October 31, 2024. The fee revisions for other categories include an increase in financial category fees from $15,000 to $20,000 and renewal fees from $13,000 to $15,000. For tech and fintech startups, the fees have changed 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.
According to ADGM, the revised fees were the result of consultations conducted in 2023 with a focus group of Al Reem Island businesses. The CEO of ADGM’s Registration Authority, Hamad Sayah Al Mazrouei, stated that the aim of the fee revisions is to minimize disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within the jurisdiction. The revised fee structure is designed to support businesses and facilitate their operations in ADGM.
The new fee structure will come into effect on January 1, 2025, replacing the current fees which expire on December 31. Businesses in the non-financial and retail categories can benefit from the reduced fees, making it more cost-effective to obtain and renew licenses within the ADGM jurisdiction. The changes in fees for other categories reflect the ADGM’s efforts to support various types of businesses and streamline the licensing process for entities operating within its regulatory framework.
Overall, the fee reductions announced by ADGM are part of the center’s initiatives to attract and support businesses in Al Reem Island and other categories. The adjustments in fees for non-financial and retail businesses demonstrate the ADGM’s commitment to creating a conducive environment for economic growth and development. By offering reduced licensing fees and streamlining the registration process, ADGM aims to foster a business-friendly ecosystem for entrepreneurs and companies looking to establish a presence in Abu Dhabi’s financial center.
