1. What is ADGM?
ADGM is an international financial centre, in the form of a Financial Free Zone established in the Emirate of Abu Dhabi, able to develop its own laws and regulations based on the application of English common law: there are some exceptions, however, where the laws of the UAE are applicable in ADGM, most notably the criminal law. You can find out more about ADGM by visiting the website www.adgm.com.
2. What does ADGM jurisdiction expansion mean?
Al Reem Island was governed by UAE federal and Abu Dhabi local laws. From the 24 April 202 when Cabinet Resolution No. (4) of 202 was issued expanding the jurisdiction of ADGM to Al Reem Island, ADGM’s legal and regulatory frameworks have been in force for Al Reem Island. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to ensure that there is a smooth transition to allow all establishments and real estate on Al Reem Island to meet the relevant requirements of ADGM’s legal and regulatory framework during or by the end of the transitional arrangements. It should be noted that federal criminal law will continue to apply to Al Reem Island.
3. When will this be effective?
ADGM’s legal framework became effective for Al Reem Island on 24 April 2023 when Cabinet Resolution No. (4) of 2023 was issued. ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalize the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in the financial services industry. The relevant ADGM authority will contact the Al Reem island community with more details on the transition process in due course.
4. How does it impact you?
Although the change to ADGM’s geographical jurisdiction took effect on 24 April 2023, in the interim, establishments and real estate on Al Reem Island can continue to operate and carry on business as before. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalize the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in financial services.
During the transitional arrangements, establishments operating in Al Reem Island should consider whether they wish to apply for the appropriate license, registration, and authorization to remain on Al Reem Island within ADGM jurisdiction or make arrangements to relocate outside of ADGM to continue being governed by the UAE federal and Abu Dhabi local legal and regulatory frameworks, that they were subject to prior to the expansion.
5. What will happen to your applications currently being processed by a federal or a local authority?
Processing of all applications will continue without change until further notice.
6. You have just renewed your residential tenancy with your landlord and registered Tawtheeq in Al Reem Island. What happens to you?
Processing and registration of all residential tenancies including the processing of other services related to real estate will continue without change and with the relevant government authority until further notice.
Your current DED license is expiring soon.
7. What are your options?
Renew it with the Department of Economic Development Abu Dhabi until further notice.
8. What happens to your current employment visa?
Your visa will remain valid as usual until further notice.
9. Are you looking to obtain building permits, infrastructure services, planning services, or any other municipality-related services?
Reach out to the Department of Municipality Abu Dhabi for all such services until further notice.
10. You are already an ADGM establishment based on Al Maryah Island?
It is business as usual for all existing ADGM establishments.
