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Due Diligence: Prepare Early or Risk Your M&A Transactions in the UAE

In 2023, the Mergers and Acquisitions (M&A) market hit a roadblock globally, with transactions experiencing a standstill. This was fuelled by widespread political and economic uncertainties, driving investors to step carefully amidst escalating global inflation and turbulent geopolitical landscapes. The anticipated market recovery in 2024 is attributed to stabilized macroeconomic conditions and a boost in investor confidence. These measures are poised to play a significant role in fostering a swift and enduring economic rebound, not only within the year but also in subsequent years.

To excel in the market in the years ahead, it’s imperative to make informed choices that cater to the success of your business ventures. At this point, the role of due diligence in M&A is crucial. In M&A, due diligence plays a major part as it helps in building a trusted relationship between the involved parties and decreases the potential risks. Beyond facts and figures, due diligence maximizes opportunities by mitigating menaces.

If you are planning for an M&A transaction, here are the things you need to grasp regarding Due Diligence.

1. Risk Management

M&A is prone to risk if the due diligence is not done properly. We don’t know where we can go wrong until we do a deep study on the target company. Through due diligence, you can get an idea about the issues and liabilities of the company and that helps you to make informed decisions. Evaluating all these in the early stage itself can reduce financial loss and get rid of legal complications.

2. Be aware before the deal.

The study on the target company’s culture, growth aspects, previous deals, and market performance etc. can have an impact on the M&A. Before getting into the transaction, a thorough research on all these will be done through due diligence which helps in taking decisions and negotiations.

3. Improving Post-Merger and Post-Acquisition Integration

Effective integration is critical to the success of an M&A deal, and due diligence is a key instrument in accomplishing this goal. A comprehensive analysis of the systems, procedures, and infrastructure of the target company enables to take apt decisions.

Due diligence in the UAE also helps identify possible issues that can arise during integration as well as cultural differences. Early recognition of these elements promotes open communication, makes it easier to create change management plans, and helps staff members from both companies work together.

Given the state of the market, the importance of due diligence in M&A deals cannot be overstated. It is an essential tool for buyers to assess risks, make knowledgeable choices, and guarantee a smooth integration following a merger or acquisition. Due diligence is generally accepted as a fundamental component of an effective and profitable M&A deal. It is highly recommended and necessary for the effective completion of any planned transaction because it adds value for all parties.

MS to assist in Due Diligence

Our team of experienced professionals offers thorough due diligence services, ensuring our clients possess the critical insights required to make well-informed decisions. Committed to excellence and possessing a deep comprehension of the distinctive business landscape in the UAE, MS serves as a dependable partner, facilitating prosperous M&A transactions by minimizing risks and capitalizing on opportunities. Enrich your business through profitable M&A transactions with MS.

Disclaimer: 

Content posted is for informational & knowledge sharing purposes only and is not intended to be a substitute for professional advice related to tax, finance, legal, compliance or accounting. No warranty whatsoever is made in this regard, and it is not intended to provide and should not be relied on for tax/finance/legal/compliance or accounting advice. The content posted is subject to future amendments / changes / clarifications in the regulation by the authorities. For any clarifications, you may contact our finance, compliance, legal team.

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Blogs

How DIFC Innovation License support emerging tech ventures in Dubai?

In recent years, the Middle East has emerged as a hub for tech-related activity, with startups proliferating at a remarkable pace. However, the journey from conception to successful implementation can be hard, particularly for fledgling tech companies navigating the complexities of managing costs while striving for growth. In this landscape, supportive ecosystems play a pivotal role, and the Dubai International Financial Centre (DIFC) has emerged as a boon for tech startups seeking to thrive in the region.

Recognizing the challenges faced by early-stage technology companies, the DIFC has taken proactive steps like welcoming tech startups to obtain the Innovation Testing License to foster innovation within its award-winning onshore financial centre. At the heart of this initiative lies the DIFC Innovation License, a gateway that provides startups with the resources and support they need to flourish.

Opening Doors to Tech Startups

One of the key features of the DIFC Innovation License is its inclusivity, catering to a diverse array of tech startups beyond just fintech. Whether it’s Edutech, Regtech, or any technology-based venture, the license offers a platform for growth and exploration. However, there are certain qualifying conditions that applicants must meet to be eligible for this license.

Qualifying Conditions for Tech Innovation Start-ups in DIFC

  • Non-Financial Services: Applicants cannot conduct any financial services under this license.
  • Technology Focus: The entity must offer a technological solution, such as software, AI, blockchain, etc.
  • Exclusion of Crypto Activities: While NFT creation is permitted, crypto-related activities, including exchanges, are prohibited.
  • Physical Presence in DIFC: A physical presence within the DIFC premises is mandatory, with options ranging from flexible desks to co-working spaces.
  • Tech or Innovation Focus: The entity’s activities must be technology or innovation-related.
  • No Trading/Selling of Products: The entity cannot engage in the trading or selling of products under this license.

Activities Covered by the DIFC Innovation License

The scope of activities permitted under the DIFC Innovation License is broad, encompassing various facets of technology and innovation. From software development to cybersecurity consultancy, the license accommodates a wide range of ventures, facilitating collaboration and growth within the DIFC ecosystem.

Here is the detailed list of permitted Tech Innovation startups in DIFC

  • Software House Network
  • Consultancies Technology
  • Research & Development
  • Public Networking Services
  • Information Technology Consultants
  • Web-Design
  • Internet Consultancy
  • Cyber Security Consultancy
  • IT Infrastructure
  • Data Classification & Analysis
  • Portal Education & Training Computer Software
  • Computer Consultancies
  • Education Technologies Research & Development
  • Internet Content Provider
  • Electronic Chips Programming

Benefits of the DIFC Innovation License

1. Subsidized Commercial Licensing: With an annual fee of USD 1,500 and a nominal one-time registration fee, the license offers an affordable pathway for startups.

2. Access to Co-Working Spaces: Startups can avail themselves of co-working spaces, starting with a flexible desk at USD 500 (+VAT) per month.

3. Visa Facilitation: The license facilitates visa processing, with provisions for up to 4 visas initially and discounted visa costs for up to 40%.

4. Integration into the Innovation Ecosystem: Quick registration grants startups access to the vibrant DIFC Innovation Ecosystem, fostering networking and collaboration opportunities.

How MS can aid you to avail a Tech Innovation Startup License in DIFC

MS provides essential assistance to tech startups aiming for the DIFC Innovation License. Utilizing our proficiency in business strategy and compliance, MS navigates startups through the licensing journey. Through personalized advisory, MS aids in crafting thorough business plans and strategies to fulfill license criteria adeptly. Additionally, MS cultivates collaboration and networking avenues within the startup community, fostering advancement and triumph for ambitious entrepreneurs in Dubai’s thriving tech industry.

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Blogs

DIFC Dubai: The canvas of opportunity for Art Galleries

Keynotes:

DIFC ArtNights epitomizes Dubai’s fusion of finance and art, with its 17th edition showcasing a vibrant canvas of creativity. Offering seamless establishment processes and direct access to an elite clientele, DIFC stands as a prestigious art hub, drawing in enthusiasts from all corners to set up a new retail business or art galleries in DIFC.

Within the vibrant heartbeat of Dubai, the Dubai International Financial Centre (DIFC) has evolved into more than just a financial hub – it’s a thriving canvas for the arts. Art galleries, since the inception of DIFC, have played a pivotal role in shaping the district’s character, offering an enticing gateway to wealthy and high-net-worth clients. Reflecting this, the 17th edition of DIFC ArtNights is marked by a burst of creativity, featuring mesmerizing artworks in an open-air gallery, engaging panel discussions, a FLTRD Fashion Pop-Up, and enchanting musical performances. This biannual event is all about transforming the pedestrian-only Gate Village district into a vibrant kaleidoscope of music, art shows, delectable food offerings, and an array of captivating events. It’s a celebration that draws in art enthusiasts from all corners.

It is not about just art, but a magical blend of art and finance as establishing a new retail business or art gallery in the DIFC is a swift and uncomplicated process. DIFC, a vibrant community of retail and lifestyle, stands as the unparalleled financial hub in the region, providing a hassle-free commercial licensing and operational environment that is well-suited for various art gallery concepts.

Advantages of setting up a new retail business or art galleries in DIFC:

1. Seamless Establishment Process: Setting up shop in DIFC is easy as the Centre, known for its efficiency, offers a straightforward commercial licensing and operating environment – a crucial factor for art galleries looking to establish a presence quickly.

2. Direct Access to Elite Clientele: DIFC’s status as the unrivaled financial hub of the region provides art galleries with a golden opportunity – direct access to both wealthy and high-net-worth clientele. This unique advantage sets the stage for a flourishing art market within the district.

3. Recognition as an Art Hub: DIFC isn’t just a financial powerhouse; it’s also a recognized art hub in Dubai. The synergy between finance and art is evident, creating an environment that appeals to those seeking a prestigious and internationally acclaimed location for their galleries.

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Blogs

Ready, Set, Innovate: A Beginner’s Guide to Innovation Testing License in DIFC, Dubai

The ITL Programme in DIFC caters to entities aiming to introduce cutting-edge financial products and services, such as payment solutions, wealth management tools, tokenized payment services, and biometric-enabled financial offerings. Explore the steps involved in obtaining an ITL license in Dubai to test your innovative product or service.

Innovation serves as a crucial pillar of the UAE’s economic progress, firmly establishing its global standing as a leading innovative nation. This peculiarity attracts businesses prioritizing innovation to choose the UAE as their operational hub. The Dubai International Financial Centre (DIFC) further enhances this allure by offering businesses with an Innovation License a distinctive advantage in shaping the future of finance and ensuring their success.

The support ecosystem provided by DIFC, including resources like the FinTech Hive and the Regulatory Sandbox, empowers innovative ventures to have lasting results. To simplify the process of obtaining an Innovation License, DIFC has introduced the Innovation Testing License (ITL) Programme. This Regulatory Sandbox offers a structured environment for startups to test their pioneering products and services before securing a permanent license. Unlike bypassing regulations, the ITL serves as an entry point for innovative firms, particularly startups, to validate their offerings with genuine customer feedback.

Let’s explore the sequential steps involved in obtaining the innovation license.

Application Process for ITL License in DIFC

The journey begins with a simple yet crucial step – submitting a Pre-application Form. This document serves as your introduction to the DFSA, outlining the innovative aspects of your business model. The DFSA reviews these pre-applications diligently, selecting those that meet the ITL eligibility criteria. If your pre-application is successful, you’ll receive an invitation to proceed with the ITL application. At this stage, you’ll need to complete and submit the ITL Application Form, accompanied by a comprehensive Regulatory Testing Plan. This plan serves as your roadmap, detailing the specific aspects of your business model, products, or services that will undergo technology-related testing during the ITL period.

Testing Period of ITL License in DIFC

Now, it’s time to embark on a transformative journey during the 12-month testing period. Collaborating closely with the DFSA, you’ll have the opportunity to test your business model and regulatory preparedness. This testing involves a temporary relaxation of selected regulatory requirements, allowing you to innovate with agility. Throughout this period, diligent documentation, and communication with the DFSA are paramount to ensure a smooth and productive testing experience.

Final Assessment and Exit Options from ITL

As the 12-month testing period draws to a close, the DFSA conducts a final assessment of your performance. If the testing is successful, you can apply to remove restrictions on your license and exit the ITL Program, ready to unleash your innovation upon the market. However, in cases where testing falls short of expectations, you still have options. You can apply to withdraw your license, regroup, and reassess your strategy for future endeavors.

In-Principle ITL

Upon a successful application, the DFSA grants you an In-Principle ITL, subject to the resolution of certain matters to the DFSA’s satisfaction. With this initial approval in hand, you can proceed with confidence. Obtain your DIFC business license, set up a bank account, and fulfill operational requirements to lay the foundation for your innovative venture.

MS as your partner in Innovation License Setup at DIFC

The DIFC Innovation License has played a pivotal role in nurturing the region’s largest innovation ecosystem, now encompassing more than 850 firms. This achievement stems from providing firms with a significantly discounted license and a flexible platform within the region’s top marketplace. At this point, establishing your business in DIFC and obtaining an innovation license can offer enduring benefits. MS offers comprehensive services for ITL applications in DIFC, covering initial consulting, authorization assistance, and support in preparing legal documentation for your seamless journey in DIFC.

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Featured

Thriving Through Seven: The journey of MS Beyond Seventh and further!

#MSBeyondSeventh

In the quiet corridors of a tiny one-seater office situated in Abu Dhabi Mainland, we started our journey in 2017. MS or being fondly called Team MS – A journey filled with trials, setbacks, and moments of doubt. Yet, from the very confines of that first office, we dared to dream, to strive, and to endure. With seven years under our belt, we have mastered the art of excellence. From managing compliance to crunching numbers and staying ahead in tax and tech, we’ve got it down pat. 

Our story 

Back in 2015, our Founder C A Mohammed Shafeek, took a leap of faith. He left his tax and advisory job at a UAE-based company to chase his dream: building a tax and business advisory firm focused on helping entrepreneurs and businesses thrive. Fast forward to today, and we’ve got a dedicated team ready to support our clients anywhere across the globe, every step of the way. 

Starting from our modest roots in Abu Dhabi, MS embarked on a journey of growth and expansion. With each step forward, we navigated the obstacles with determination, expanding our world to the ADGM and MASDAR in 2022 and to DMCC jurisdiction in 2023. The journey from Abu Dhabi mainland to ADGM jurisdiction was not just a progression of location, it is a story of resilience, obstacles overcome, and the relentless pursuit of excellence to meet market demands.

Not only has MS garnered numerous industry awards and expanded our client base, but we’ve also actively participated in and celebrated our clients’ achievements, fostering mutual success. By providing sound advice and timely insights, we’ve helped them make the right decisions at the right time. It’s been a joyous journey celebrating these achievements together over the past seven years.

2023: A Year of Triumphs and Transformations

“Reflecting on our journey through 2023, we’ve demonstrated resilience, turning challenges into opportunities and reaching milestones together. As we celebrate our 7th Anniversary in March 2024, we’re excited about the developments ahead, all aimed at serving our GCC market with excellence. Let’s unite and channel our energies towards nurturing growth and success together in the coming years”.

Our Founder and Group CEO C A Mohammed Shafeek

MS kicked off 2023 with a resounding triumph: our entrance into the prestigious DMCC jurisdiction in Dubai. This marked the first of many milestones as we continued our journey toward excellence. Swiftly followed by the momentous launch of our R&D Hub in India, further solidifying MS’s commitment to innovation and global reach.

Progressing further, MS made waves at the Hub71 event. Our Founder and Group CEO C A Mohammed Shafeek stood out as a true leader during the interactive session on Corporate Tax in the UAE, showcasing his impressive knowledge and expertise. 

We seized a fantastic opportunity to sponsor and launch the Midfield Community Cup 2023, here in UAE, where we proudly served as the title sponsor.

Adding to our string of successes, MS clinched the prestigious Finnext Award 2023 for Kitaab and MS, recognizing us as an innovative company in finance. This remarkable achievement marked the first accolade of the year.

To our surprise, a tribute video which was a product of our Marcom team, created for ADGM’s 8th anniversary gained notable recognition from the ADGM authorities. Witnessing the video being played in the ADGM atrium by none other than the ADGM CEO marked a groundbreaking moment for MS, showcasing our impact and significance within the industry.

Remarkable final quarter of 2023: “Hayyakum” Abu Dhabi Finance Week to Cop28

As part of our ongoing vision, MS launched its significant initiative, phase one of ‘Hayyakum: To Your Destiny’, a week-long event aimed to offer valuable insights to the Abu Dhabi business community, regarding the expansion of Al Reem Island. Furthermore, MS has solidified its media presence by successfully collaborating with Times Network to capture the essence of ADGM and AD Financial Week 2023. It has been immense for us to explore and showcase the vibrant landscape of opportunities emerging from this thriving hub, propelling us into new realms of growth and prosperity.

A significant milestone in MS’s journey unfolded in 2023 with the partnership forged alongside the Global Alliance for a Sustainable Planet (GASP), marking a monumental step towards global climate action and sustainable development. The announcement of this partnership gained widespread attention at the COP28 UAE event. It’s moments like these that underscore MS’s commitment to driving positive change and shaping a more sustainable future for all.

As we reflect upon the journey that unfolded, we find ourselves standing at the intersection of accomplishment and introspection, poised to embrace the lessons garnered from both triumphs and tribulations. 

Our visionary future

We know each business is like a unique puzzle, that needs to be crafted and tailored based on the client’s requirements. So, we MSians dive in, work together, and tailor strategies that fit just right. At MS, our clients reign supreme, serving as the cornerstone of our growth, evolution, and unparalleled success. We are making our vision clear and broad as we step into this new phase. You might wonder, what’s our focus? It’s all about accelerating our growth in where we work and what we offer. In this seventh year, we aim for progressive global growth, delivering top-notch solutions across different regions and industries. With MS’s remarkable jurisdictional expansion, burgeoning client base, and numerous successes, we stand poised and eager to extend our exceptional service to DIFC, a testament to our unparalleled growth and dedication.

As we set sail into our seventh year, ‘MSBeyondSeventh’ becomes more than just a tagline; it’s a profound tribute to our origins nestled in the heart of the seven Emirates, The UAE. It encapsulates our journey, not merely spanning seven years, but transcending boundaries, propelling us towards boundless success and unprecedented growth. It symbolizes our collective aspiration to venture beyond the familiar, forging a path toward a future rich with promise and achievement.  As we step into this thrilling new chapter, we embark on a journey pulsating with innovation, growth, and a profound reverence for our roots. Here’s to ‘MSBeyondSeventh’ and the limitless possibilities that await us on the horizon!

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News & Press Releases

Non-Dom Tax in the UK Repealed: Global Impact on the UAE and Beyond

Jeremy Hunt, United Kingdom’s chancellor of the Exchequer, shook up headlines with a game-changing move in the Spring Budget – waving goodbye to the non-domiciled tax regime in the UK and unveiling an exciting, revamped ‘tax holiday’ for those making the move to the kingdom. The significant transformation is likely to impact not just the UK tax system but also other tax-friendly nations, including Western European jurisdictions such as Greece, Malta, and Ireland, as well as countries in the MENA region.

Before that, let us journey through the story of the epic non-dom tax.

Tracing the history of non-dom tax in the UK

The origin of the non-dom tax regime can be traced back to the inception of income tax in 1799 when residents were solely taxed on income earned abroad if it was received within the country. This marked the introduction of the ‘remittance Basis’ of taxation, a concept that underwent modification in 1914, restricting eligibility to residents not domiciled or ordinarily resident in the UK. The ‘remittance Basis’ regime, utilized by non-domiciled individuals, has largely retained its core principles since the 1900s, with significant reforms in 2008 and 2017. Despite these changes, the fundamental principle persists that non-doms are only taxed on overseas income and capital gains to the extent that funds are brought into or used in the UK. Since 2017, non-domiciled individuals have had the option to elect for the remittance basis of taxation for 15 years. Beyond this period, they are treated as ‘deemed domiciled’ for tax purposes, and subjected to worldwide taxation. However, a non-dom can establish a non-UK trust before the 15-year term expires, theoretically exempting the trust from UK tax concerning non-UK sources. The concept that one’s domicile should determine their tax assessment is unusual. Domicile, inherited from one’s father at birth, is often considered an outdated and complex concept. In recent years, Her Majesty’s Revenue and Customs (HMRC) has increased inquiries to ascertain non-UK domicile status, revealing a degree of subjectivity in the assessment process.

But now the non-dom tax has been phased out and the recent changes have introduced new players into the game.

UAE’s attraction for global migrants: A boon amidst UK tax reforms

With its tax-friendly regime, the UAE is emerging as an irresistible destination for high-net-worth individuals (HNWIs), promising both fiscal efficiency and a top-notch quality of life. The UAE’s magnetic appeal is drawing UK millionaires and professionals with its blend of lower living costs, enticing salary benefits, economic stability, and global hi-tech prominence. Offering long-term residence visas, a high quality of life, and public safety, the UAE stands out as the ideal destination. Meanwhile, the UK grapples with a 50 percent surge in living costs, triggering an exodus of HNWIs. The Henley Private Wealth Migration Report 2023 predicts the loss of 3,200 more HNWIs in 2023, adding to the 12,500 already departed between 2017 and 2022.

Also, the UAE’s real estate sector is set to flourish, fuelled by UK nationals contributing 21.2 percent to international property transactions in 2023. As Abu Dhabi emerges as a bridge between East and West, UK entrepreneurs flock to set up businesses, injecting diverse investments into the thriving UAE economy. This shift signifies the UAE’s ascent as the top choice for migration, driven by economic growth, political stability, and abundant job opportunities. The existing English Common Law system of ADGM in Abu Dhabi can also be an add-on to the migrants for seamless shifts. The traditional allure of the UK, especially London, for migrating millionaires has waned in the face of Brexit and the declining importance of the London Stock Exchange. Being a solution for that, the UAE stands as a global financial hub, beckoning with unprecedented opportunities for these migrating individuals.

Crafting strategies in the face of changing tax landscapes

The impending non-dom tax changes hold substantial implications, particularly for clients in the MENA region, with a specific emphasis on the UAE. Individuals in the UAE and elsewhere should assess their UK residence intentions and seek professional advice to proactively plan for these tax adjustments. Keep in mind that these changes might continue to evolve, especially with the upcoming UK general election set before January 28, 2025, which precedes the implementation of most of these rules by April 2025.

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News & Press Releases

DIFC Dubai sets new standard in financial regulation with world’s first Digital Assets Law

Why is there a need for regulatory clarity in the rise of Digital Assets in DIFC?

Digital assets have emerged as a trillion-dollar asset class with immense potential for innovation and market opportunities. However, the legal framework surrounding them has been a subject of debate and uncertainty. Recognizing the need to adapt to rapid technological developments, DIFC embarked on an extensive review of legal approaches in various jurisdictions before crafting its own comprehensive Digital Assets Law. The Digital Assets Law addresses fundamental questions regarding the legal nature of digital assets and establishes clear guidelines for their control, transfer, and dealing by interested parties. By enacting this legislation, DIFC aims to provide a robust legal framework that fosters innovation while ensuring investor protection and regulatory compliance.

Any impacts on other existing laws in DIFC?

DIFC has updated existing laws, including the Contracts Law, Law of Obligations, and Law of Security, to accommodate the implications of the new digital assets regime. These amendments reflect DIFC’s commitment to keeping pace with international developments and maintaining a transparent environment for businesses and investors.

“The revised regime is modeled on the UNCITRAL Model of Secured Transactions and significantly enhances DIFC’s securities regime to keep pace with international developments in this field and to ensure DIFC remains at the forefront of best practice.”

Jacques Visser, Chief Legal Officer, DIFC

Electronic Transferable Records

Updates to the Law of Obligations now incorporate provisions for the utilization of electronic transferable records. These records serve as digital counterparts to traditional paper trade documents like bills of lading, bills of exchange, promissory notes, and warehouse receipts. Acknowledging these electronic documents streamlines cross-border digital trade, enhancing the pace and security of document transmission and enabling the automation of specific transactions via smart contracts. Through this, DIFC is embracing technological advancements to streamline business processes.

Digital Assets Law in DIFC: Key Provisions

In conjunction with the Digital Assets Law, DIFC has repealed the 2005 Law of Security and replaced it with a new Law of Security aligned with international best practices according to the UNCITRAL’s Model Law on Secured Transaction. This move enhances DIFC’s securities regime, particularly concerning the taking of security over digital assets, and ensures that DIFC remains at the forefront of global financial standards. The DIFC is also moving towards the repeal of the Financial Collateral Regulations, consolidating the financial collateral provisions into a fresh chapter within the revised Law of Security.

What is in it for the budding digital asset ventures landing in DIFC, Dubai?

DIFC’s enactment of the Digital Assets Law and related legislative amendments marks a significant milestone in the evolution of global financial regulation. Clear regulations in the digital asset sector offer numerous benefits for blockchain technology businesses majorly CRYPTO and NFT. The guidelines reduce ambiguity, providing a solid foundation for businesses while enhancing consumer protection and fostering trust. These guidelines also boost market confidence and attract inward investment, stimulating economic growth and innovation. Proactive regulation aligns with global trends and these frameworks reinforce the DIFC’s global leadership in the digital asset sector, positioning the DIFC as an innovation hub.

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Blogs

Al Reem Island Businesses: Obtain your ADGM Licenses in Easy steps

For aspiring startups and established firms in Al Reem Island, ADGM offers an exceptional platform for your growth. Now it’s the time to acquire the ADGM license and step into the robust ecosystem to unlock your full potential and achieve sustainable success. As the deadline for transition is fast approaching, all the existing businesses on Al Reem Island, ensure you obtain your necessary licenses before 31st December 2024. It’s important to note that the present DED license becomes invalid after the deadline.

Highlights to date

Abu Dhabi’s ascent as a premier financial hub gains momentum with the expansion of Al Reem Island businesses to ADGM. Existing businesses on Al Reem Island have until December 31, 2024, to undergo transition, with the existing licenses becoming invalid from January 1, 2025. During this period of transition, businesses can operate as usual, exempt from ADGM regulations. Starting November 1, 2023, new businesses aiming to establish on Al Reem Island must apply for licenses through ADGM, further enhancing Abu Dhabi’s economic vision and establishing ADGM as a global financial hub.

Simplify transition: step-by-step guide

The companies undergoing transition get the benefits of fee waivers and incentives. Managing the transition process can be daunting, but here are simplified steps to guide you through completion seamlessly.

Al Reem Island Businesses: Obtain your ADGM Licenses in Easy steps

Businesses aiming for the new setup 

  1. Choosing the perfect business name – Choose a compelling business name that aligns with ADGM’s regulations and submit it for validation to ensure compliance. 
  2. Lease agreement finalization – Finalize with the ADGM authority for a lease agreement that favors your retail setup.
  3. Document preparation – Necessary documents include financial statements, legal paperwork, and trade licenses meeting the ADGM requirements. 
  4. Submission of documents – Submit the documents to the ADGM authority for approval 
  5. Issuance of license – Be patient and wait for the issuance of the retail licenses from ADGM upon approval of the submitted documents.
  6. Registration with DMT– Register the lease agreement with the Department of Municipalities and Transport (DMT) and ensure it complies with municipal regulations.
  7. Ongoing compliance – Follow the ADGM’s compliance rules and complete the annual obligations on time.

Businesses opting for continuance to ADGM

  1. No Objection Certificate (NOC) – Obtain an NOC from the Department of Economic Development. 
  2. You must adhere to the ADGM guidelines to ensure the validity of the existing lease agreement.
  3. You must Prepare and submit necessary documents, including financial statements, legal paperwork, and trade licenses meeting ADGM standards, to ADGM authority for approval, leading to the issuance of your license.
  4. Finalized leases must be registered with the Department of Municipalities and Transport (DMT) for official validation.
  5. You need to ensure that your business operations and practices comply with the regulations and requirements set forth by the International Compliance Professionals (ICP), the Ministry of Human Resources and Emiratisation (MOHRE), and the Abu Dhabi Global Market (ADGM).

Navigate your process with the Guidance of MS

MS provides comprehensive advisory services for new businesses obtaining licenses on Al Reem Island in ADGM. If you decide not to switch to an ADGM-free zone license or encounter other difficulties, our team will guide you through the application process. We offer all-inclusive services like compliance, tax advice, finance management, and technology optimization for holistic business success. Prepare for an entrepreneurial and corporate voyage with MS as ADGM emerges on Al Reem Island, presenting a captivating blend of opportunity and innovation!

Disclaimer :

Registered in Abu Dhabi Global Market (Registered No. 000007218),
We are not an ADGM Registered Corporate Service Provider.

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Blogs

Elevating your business with ethical leadership through advanced Executive Search

Hiring a C-suite talent for your business can have effects on the future of your growth. Companies select executives in different situations based on their unique needs. When considering the need to bring in an executive, there are various positive scenarios to explore. For instance, your company might be in a phase of expansion or establishing a new department, requiring the recruitment of a capable leader. Additionally, forward-thinking businesses often engage in succession planning to ensure a smooth transition in leadership.
Conversely, the situation takes a more challenging turn when the objective is to replace an underperforming leader, either in the process of being terminated or already dismissed. In such instances, the focus shifts to finding an executive with an optimal skill set to not only address the existing issues but also propel the company forward, recapturing momentum and advancing towards its objectives.
But what if the unethical behavior of the leader is the reason for the replacement. Ethics-driven terminations highlight the need for executives with a strong ethical foundation in the recruitment process. Finding leaders with the right skills and unwavering ethical principles sets the stage for outstanding results and long-term success. Trustworthy leaders prioritize moral integrity, putting others first and avoiding unethical behaviour even in challenging situations.

Qualities of an Ethical Top-notch Leader

  1. Honesty as a Foundation: Ethical leaders prioritize honesty in their actions and communications. While not obligated to divulge every detail, they avoid bending the truth or evading direct answers. Striking a balance between transparency and discretion is key, and consistent dishonesty raises a red flag.
  2. Respect Across Hierarchies: Recognizing that organizational charts are social constructs, ethical leaders treat every individual with respect. Whether engaging with interns, IT department members, or fellow C-suite executives, they uphold a culture of respect, understanding the intrinsic value of each team member.
  3. Leading Through Example: Ethical leaders don’t merely delegate tasks; they lead by rolling up their sleeves and actively participating. While delegation is necessary, demonstrating a willingness to be on the frontline inspires others to follow suit. Leading by example fosters a sense of unity and commitment within the team.
  4. Compassion in High-Stakes Decision-Making: Ethical leaders navigate the complexities of leadership with a compassionate approach. In making tough decisions driven by budgets or personnel management, they remain empathetic to the individual experiences of their team members. This blend of analytical prowess and emotional intelligence creates a supportive work environment.

How MS can aid you in placing an ethical leader for your business:

MS can provide unparalleled expertise and support to meet your executive talent needs, ensuring a seamless and strategic hiring process. We collaborate closely with your organization to understand its unique culture, goals, and leadership requirements. Our proven track record in working in various industries can attract top-tier executive talent. MS ensures the selection of individuals who not only possess the requisite skills and experience but also align with your company’s vision and values. From initial candidate sourcing to final onboarding, our end-to-end solutions streamline the hiring journey, saving your valuable time and resources. Trust us to be your strategic partner in securing the executive talent essential for propelling your company towards sustained success and grow

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Blogs

ADGM leads the way: Abu Dhabi caps off 2023 as the region’s largest financial hub

ADGM’s outstanding journey in 2023

1. ADGM expanded tenfold by incorporating Al Reem Island in April 2023, solidifying its position as one of the world’s largest International Financial Districts with a vast area of 14.38 million sqm.

2. In May 2023, ADGM launched its inaugural Money Laundering and Terrorist Financing (ML/TF) Risk Assessment of ADGM Legal Persons and Arrangements Report (LPA Report), showcasing a commitment to ensuring a secure financial environment.

3. ADGM FSRA announced crucial revisions to its Anti-Money Laundering and Sanctions Rules and Guidance, collectively known as “the AML Rulebook,” emphasizing a proactive approach to combat illicit financial activities.

4. The Registration Authority (RA) of ADGM contributed significantly by publishing the legislative framework for Distributed Ledger Technology (DLT) Foundations, paving the way for innovation and accountability in the blockchain technology sector within ADGM.

During the inaugural edition of Abu Dhabi Finance Week hosted by ADGM last November, His Excellency Ahmed Jasim Al Zaabi, member of the Abu Dhabi Executive Council and Chairman of the Abu Dhabi Department of Economic Development (ADDED), launched the concept of ‘Falcon Economy’ capturing the imagination of business leaders eager to soar with the emirate’s ascendancy as a premier regional and international business hub.

“In merely eight years, we have become one of the world’s largest financial districts and the fastest-growing international financial centre in the region, for two years consecutively.”

H.E. Ahmed Al Jasim Al Zaabi

Achieving success by turning this imaginative idea into a reality, 2023 marked a triumphant year for Abu Dhabi Global Market (ADGM), the international financial centre in the UAE’s capital, as it solidified its status as the fastest-growing financial hub in the region for two consecutive years. Abu Dhabi’s global recognition as a prominent financial centre was underscored by ADGM’s strong start to the year, building on the significant growth seen in 2022 and exhibiting a positive outlook for the months ahead. The quarterly and half-yearly growth metrics for 2023 showcased impressive advancements across all aspects of the financial centre’s operations.

ADGM: The Financial Powerhouse

Following the trend from 2022, ADGM’s asset management sector experienced an outstanding year, witnessing a remarkable 35% YOY increase in Assets Under Management (AUM) by the end of 2023. The sector attracted 102 asset managers overseeing 141 funds, with names like Brevan

Howard, Goldman Sachs, and Blackstone establishing operations within ADGM. The financial hub’s appeal transcended borders, as operational entities surged to 32% growth from 2022. This influx included global and regional giants like Ardian, Asian Infrastructure Investment Bank (AIIB), and local entities such as ADQ and G42. The end of 2023 also saw 88 financial institutions and 2 exchanges receiving approval from ADGM. Adding to this, ADGM’s workforce mirrored its upward trajectory, expanding by 22% to 13,394. Notably, global financial institutions and investment banks, including JP Morgan and BNP Paribas, found a home within ADGM.

Year of Sustainability and COP28 Initiatives

In line with the ‘Year of Sustainability’ extending into 2024, ADGM took a leading role in sustainable finance. The introduction of the region’s first comprehensive regulatory framework for Sustainable Finance in the first half of 2023 showcased ADGM’s commitment. Designated as the ‘Principal Climate Finance Partner’ of COP28, ADGM launched the Global Climate Finance Centre (GCFC) and witnessed the initiation of ALTÉRRA, a 30 USD billion climate vehicle. The Abu Dhabi Sustainable Finance Declaration gained momentum, attracting 28 new signatories in 2023, bringing the total count to 145.

MS as your partner in ADGM

As the Falcon Economy takes flight, MS can help you achieve success by contributing to the affluent story of ADGM and leaving a lasting impact on the financial landscape of Abu Dhabi. The future is bright, and with strategic collaboration, MS can be a key player in shaping the financial narrative of this dynamic and rapidly growing financial hub for you.