A year ago, the UAE government expanded ADGM to include Al Reem Island, making it one of the world’s largest financial hubs. Under the UAE Cabinet Resolution No. 41 of 2023 issued on April 24, 2023, this bold initiative saw the integration of Al Reem Island alongside its original location on Al Maryah Island, signifying a major milestone in ADGM’s growth since its establishment merely eight years ago.

ADGM’s Al Reem Island Expansion and Growing Demand

Due to high demand, occupancy rates on Al Maryah Island in ADGM surpassed 95%, leading to the incorporation of Al Reem Island to accommodate more companies flocking to Abu Dhabi’s lively financial hub. This expansion has filled ADGM’s ecosystem with rich amenities that solidified its position as a preferred destination for corporates, professionals, and global talents from across the world.

Transition Initiation

ADGM closely collaborated with government stakeholders and local authorities including the Abu Dhabi Department of Economic Development (ADDED), Central Bank of UAE (CBUAE), Abu Dhabi City Municipality (ADM), Ministry of Human Resources and Emiratisation (MoHRE) and Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) to ensure a seamless transition.

To facilitate a smooth transition, ADGM authorities have implemented flexible measures and license processing guidelines to support Al Reem Island Businesses.

Current Phase

Since November 1, 2023, all new businesses on Al Reem Island are required to get a commercial license from ADGM instead of Abu Dhabi Department of Economic Development (ADDED). Thus, all the new businesses are obliged to adhere to ADGM’s laws and regulations.

Existing businesses on the Island can continue with their ADDED license until December 31, 2024. After that, they must comply with ADGM’s licensing requirements as the ADDED license will become invalid from January 1st, 2025.

Transition Incentives

During this transition period, companies including the non-financial and retail sector can benefit from significant fee waivers and incentives based on the completion of the transition process.

Al Reem businesses, spanning healthcare, hospitality, retail, construction, real estate, professional services, etc. (excluding financial services) can obtain an ADGM license without any registration fee until October 31, 2024. They need to ensure that their license lists an Al Reem address and is free of outstanding fines.