The Abu Dhabi Global Market (ADGM) has announced a significant reduction in its existing commercial license fees as part of its ongoing support for businesses transitioning to Al Reem Island. The new fee structure will take effect from 1st January 2025, featuring substantial reductions of 50% or more for obtaining non-financial and retail licenses within its jurisdiction.
Revised non-financial and retail license fees – key updates
The initiative’s intention is to enhance ADGM’s business ecosystem making it accessible and attractive for various businesses. Under the revised schedule:
- Registration fees for new businesses in the non-financial category will be reduced from $10,000 to $5,000.
- The annual license renewal fees for the same category will be lowered from USD 8,000 to USD 5,000.
- Registration fees for the retail category have been slashed from USD 6,000 to USD 2,000.
- License renewals for the retail category will also see a 50% reduction, lowering annual fees to USD 2,000.
The revised licensing fees will take effect on 1st January 2025, aligning with the conclusion of the current transition period on 31st December 2024. This new fee structure will apply throughout ADGM’s jurisdiction, covering both Al Maryah and Al Reem Island.
Hamad Sayah Al Mazrouei, the CEO of ADGM RA said “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 licence, enabling them to operate efficiently within our jurisdiction.”
Changes across categories
The fee exemption for qualifying non-financial and retail businesses on Al Reem Island ends on October 31, 2024. In other categories, ADGM’s financial registration fees will rise to USD 20,000 with renewals at USD 15,000 annually. Tech and fintech startups will experience minor adjustments in fees, with both new registrations and renewals set at USD 1,500. Fees for Special Purpose Vehicles (SPVs) remain steady at USD 1,900. A detailed fee schedule applicable from January 1, 2025, will be published in December.