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ADGM Wins the ‘Most Trusted Financial Centre Brand’ at Global Brand Awards 2024

ADGM Wins the 'Most Trusted Financial Centre Brand’ at Global Brand Awards 2024
ADGM Wins the 'Most Trusted Financial Centre Brand’ at Global Brand Awards 2024

ADGM secures the prestigious title of the ‘Most Trusted Financial Center Brand’ in the Middle East, winning the esteemed 2024 Global Brand Award.

On April 2, 2024, the global stage was set alight with the prestigious Global Brand Awards Ceremony, hosted annually by Global Brands Magazine (GBM), bringing together a precious gathering to celebrate international brands that excel across diverse industries. Among the awardees, ADGM stood out, proudly securing the esteemed title of the ‘Most Trusted Financial Centre Brand, Middle East’ for the distinguished year of 2024.

ADGM’s outstanding performance was showcased through GBM’s assessment of factors like Customer Trust, Innovation, Regulatory Compliance, and Brand Value. This recognition emphasizes ADGM’s dedication to excellence and integrity, solidifying its reputation as a trustworthy leader in the Middle East’s financial sector. This recognition from GBM not only acknowledges ADGM’s past successes but also serves as a guiding force directing its future endeavors toward sustained growth and prominence in the global financial arena.

Jay Reddy, Director, Global Brands Magazine mentioned that “We are delighted to recognize ADGM as the winner of the ‘Most Trusted Financial Centre Brand’ in the Middle East. ADGM’s commitment to excellence, innovation, and integrity has positioned it as a beacon of trust and reliability in the region’s financial landscape, setting a benchmark for others to follow.”

Salem Mohammed Al Darei, CEO of ADGM Authority said, “Trust is not just a value but the cornerstone of ADGM’s identity. Being recognized by the reputed Global Brands Magazine as the ‘Most Trusted Financial Centre Brand, Middle East’ underscores the remarkable growth of ADGM and Abu Dhabi as a financial powerhouse, extending our influence beyond regional boundaries. We are on a path to keep soaring high as we set new ambitious goals and elevate Abu Dhabi as the ‘Capital of Capital,’ solidifying its position among the world’s premier international financial centres.”

ADGM: The Financial Powerhouse

Founded on October 21, 2015, Abu Dhabi Global Market (ADGM) serves as the international financial center (IFC) of the United Arab Emirates’ capital city.  In 2023, ADGM emerged as a true financial powerhouse. Positioned as a strategic link between the flourishing economies of the Middle East, Africa, South Asia, and the world, ADGM has elevated Abu Dhabi’s prominence as a leading financial hub and a dynamic business gateway in the region for two consecutive years.

With ADGM’s strategic expansion to Al Reem Island, international companies started embracing this tax-friendly jurisdiction. This development not only strengthens ADGM’s position but also elevates Abu Dhabi’s status as the ‘Capital of Capital’.

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Deadline Approaching: Ensure compliance with crucial DFSA & FSRA filings by April 30th, 2024

Deadline Approaching: Ensure compliance with crucial FSRA & DFSA filings by April 30th, 2024
Deadline Approaching: Ensure compliance with crucial FSRA & DFSA filings by April 30th, 2024

The Abu Dhabi Global Market’s and Dubai International Financial Centre’s vision for a fair, efficient, and transparent marketplace is always advocated by the Financial Services Regulatory Authority (FSRA) and Dubai Financial Services Authority (DFSA) by upholding compliance standards and making a progressive global financial hub. The regulatory requirements mandated by these bodies play a major role in bringing the registered entities in line with the standards of these international financial centres.

Both authorities have an upcoming deadline: April 30th, 2024, for several crucial filings this year. It is imperative for businesses to ensure they fulfill these obligations promptly to maintain compliance and avoid potential penalties.

What are DFSA & FSRA?

FSRA and DFSA stand as significant pillars in the financial landscape, each playing a crucial role in regulating and safeguarding the financial services of ADGM and DIFC.

The Dubai Financial Services Authority (DFSA) operates as an independent regulatory body within the Dubai International Financial Centre (DIFC). Its jurisdiction spans a wide array of financial activities including asset management, banking, securities, insurance, and more. Moreover, it diligently enforces anti-money laundering (AML) and counter-terrorist financing (CTF) measures, ensuring the integrity and security of the financial environment within the DIFC.

On the other hand, the Financial Services Regulatory Authority (FSRA) holds sway in the Abu Dhabi Global Market (ADGM). This regulatory body is dedicated to upholding internationally recognized standards and best practices, ensuring that financial entities operate on a level-playing field while prioritizing the interests of customers and investors.

What sets the FSRA apart is its adaptive regulatory framework. It keeps pace with evolving global standards and market innovations, maintaining a keen eye on international standard-setting bodies. FSRA actively engages with stakeholders through public consultations, fostering transparency and inclusivity in its regulatory processes.

We have made the list of filings due on April 30th, 2024, that you must follow and comply with.

  • Regulatory Returns Auditor’s Report – FSRA & DFSA Regulated Entities
  • Financial Statements and Auditor’s Report – FSRA & DFSA Regulated Entities
  • Internal Risk Assessment Process (IRAP) – FSRA & DFSA Regulated Entities
  • Internal Capital Adequacy Assessment Process (ICAAP) – FSRA & DFSA Regulated Entities
  • Client Money Auditor’s Report – FSRA & DFSA Regulated Entities
  • Safe Custody Auditor’s Report – FSRA & DFSA Regulated Entities
  • Annual Report on Controllers – FSRA & DFSA Regulated Entities
  • Public Listed Company Auditor’s Report – FSRA & DFSA Regulated Entities
  • Quarterly EPRS Returns – FSRA & DFSA Regulated Entities
  • AML Return – FSRA & DFSA Regulated Entities & DNFPB Entities
  • ADGM FATCA & CRS SCF – For all ADGM entities

MS as your compliance partner in both ADGM and DIFC

Our team comprises finance, compliance and legal professionals equipped with the expertise, competence, and up-to-date regulatory knowledge necessary to support your finance function. MS is committed to ensuring absolute compliance with ADGM and DIFC’S regulatory requirements without fail. Take the first step towards planning your crucial filings for the month ahead with our seamless plan and proactive guidance.

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How ADGM is empowering Tech Startups in Abu Dhabi to rise and shine

How ADGM is empowering Tech Startups in Abu Dhabi to rise and shine
How ADGM is empowering Tech Startups in Abu Dhabi to rise and shine

Abu Dhabi’s transformation into a global economic powerhouse is nothing short of extraordinary. Reflecting this success, Abu Dhabi Global Market (ADGM) has emerged as an epitome of growth and progress in the financial world. In just eight years, ADGM has become one of the world’s largest financial districts and the fastest-growing international financial center in the region, securing its place as a Falcon economy. The journey of ADGM is a testament to the power of vision and unwavering commitment. It underscores the remarkable results that come from consistent effort, persistence, and alignment with economic goals. As ADGM declared 2023 as a “year of success” for the international financial center of the UAE, the role of tech startups in building ADGM’s ecosystem cannot be overstated.

Hub71: The launchpad of tech startups in ADGM

Hub71, a vibrant tech ecosystem based in ADGM, offers global startups access to capital, market opportunities, longer-term visas, and a highly skilled talent pool. ADGM provides competitive tech startup licenses that enable entrepreneurs to grow and scale their businesses within an award-winning regulatory framework. Abu Dhabi’s strategic advantages make it an ideal launchpad for tech startups. With a multi-billion Dirham commitment to programs like Ghadan 21, the government is actively supporting innovation, committing AED 1 billion to help startups and entrepreneurs build a technology-enabled future.

Here’s why tech startups should consider ADGM as their hub:

  1. Cost-Effectiveness: ADGM’s Tech Startup License is incentivized for up to three years, providing a favorable environment for startups to establish themselves.
  2. Visa Benefits: Entrepreneurs can avail 3-year and 5-year visas, facilitating their stay and operations in Abu Dhabi.
  3. Sector Agnosticism: The ADGM Tech Startup License is open to startups across all sectors, fostering diversity and innovation.
  4. Access to Ecosystem: Through Hub71 and ADGM’s innovation cluster, startups benefit from a strong network of government entities, corporates, funders, and industry partners.
  5. Access to Investors: ADGM hosts a growing community of venture capital firms, banks, financiers, and investors, providing capital for growth.
  6. Rule of Law: ADGM offers a robust legal framework based on English common law, ensuring transparency, fairness, and enforceability of contracts.

ADGM Tech Startup License

The ADGM Tech Startup License offers an expedited setup process for entrepreneurs in the UAE, with two distinct stages: Seed and Emergent. Notably, this license is for innovative tech startups, excluding technology service providers.

Eligible applicants include local, regional, and international startups with innovative tech business models that leverage technology to solve customer challenges and address specific market needs. These startups should demonstrate potential for regional or global scalability and support sustainable economic development.

Benefits of the Tech Startup Commercial License in ADGM are comprehensive, including:

  • An operational commercial license irrespective of sector.
  • Competitive annual license fees, with USD 1,000 for the seed stage (up to two years) and USD 4,300 for the emergent stage (up to three years) within the first five years of operation in ADGM
  • Provision of three visas for every desk space.
  • Eligibility to apply for dual license recognition with the Abu Dhabi Department of Economic Development, subject to meeting criteria.
  • Access to potential funding and equity-free subsidies through the Hub71 Incentive Program.
  • Potential access to the Hub71 community, including accelerator programs like Plug & Play.
  • Access to a network of local and international entrepreneurial mentors and experts.
  • The assurance of an independent jurisdiction under an internationally recognized English common law framework.

Furthermore, eligibility for the incentivized license is determined upon application, with a fixed duration. For instance, approval for the seed stage incentivized license grants two years in the seed stage, automatically transitioning into the emergent stage in the third year of operations, irrespective of full-time employee count.

 Applying for a tech startup license in ADGM is seamless. Here is how to do that:

Application Process for Obtaining a Tech Startup License in ADGM

Submission: To obtain the ADGM Tech Startup License, startups can apply online. Along with the application, a business plan, office space lease, initial annual license fee, as well as other necessary documentation mentioned by ADGM is required.

Review: ADGM will assess the application and notify applicants via email if additional information is needed.

Approval: Upon completion of the evaluation, applicants will receive an email informing them of the status of their application.

Incorporation and License Issuance:  Once approved, the registration and incorporation process are handled by the ADGM Registrar and the license is issued. Applicants will receive email confirmation of the license issuance and can proceed with their operations.

Why MS in ADGM?

With extensive knowledge of local regulations and established connections within ADGM, we can guide you. Through personalized advisory services, we guide startups through licensing requirements, fostering collaboration and networking opportunities within Abu Dhabi’s tech industry. This support contributes significantly to the success of ambitious entrepreneurs in the startup community.

Disclaimer: 

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

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 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms

 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms
 ADGM Transition Essentials: 8 Must-Know Steps for Al Reem Island Firms

As an Al Reem Island business entity undergoing transition, you might encounter various administrative tasks and legal requirements. From updating employment contracts to notifying counterparties, each step plays a crucial role in ensuring a smooth transition and compliance with ADGM regulations. In a recent collaboration, MoHRE and ADGM have signed an MoU to simplify the transfer of work permits and licenses for Al Reem Island-based companies to ADGM.

As the deadline nears, it’s crucial for companies aiming to establish or transition to ADGM to closely follow ADGM guidelines and processes for a smooth transition. Take advantage of fee waivers and incentives available to transitioning companies before the conclusion of the transition period to maximize benefits.

Here are key factors to consider throughout and after the migration process for Al Reem Island firms

Establishment card and employee visa update.

  • Businesses can experience automatic linking of the existing visas and IDs to the ADGM-issued license through smart devices or the ICP system and no cancellation is required. 
  • If you hold an investor visa, apply for a change of job title once visas are linked to your ADGM entity.
  • New employees can obtain new visas through ADGM’s AccessADGM government services portal.
  • Residency visas for employees’ dependents will remain valid as is. They can continue to enjoy their residency privileges without any adjustments.

Employment contracts

  • Following the ADGM Employment Regulation, prepare a new employment contract, and provide them for employee review, before registering a new entity.
  • Proceed to sign them individually. 
  • Ensure employees receive their entitled end-of-service payments according to onshore laws, with a possibility to transfer accumulated benefits to the new contract.

Work permits

  • The employers will have to apply for work permit services for employees with a valid visa under the newly licensed ADGM entity.
  • Employers obtain temporary work permits via AccessADGM for part-time employees with employment visas from other jurisdictions.
  • Employers procure full-time non-sponsored employee Work Permits through AccessADGM for UAE/GCC nationals, dependents, or long-term visa holders (Golden/Green)

Bank account transition

  • Notify bank managers of upcoming changes to existing accounts (should be completed before the registration of a new entity)
  • Provide all necessary documentation (constituent documents, commercial license) confirming migration to ADGM, including corporate documents issued by ADGM.
  • Updation of account names if necessary (Additional rules may apply based on individual bank policies).

Lease agreement

  • Update your lease agreements to reflect new company details and comply with ADGM Real Estate Regulations by December 31, 2024. Ensure registrations are done according to ADGM rules. 

Power of Attorney

  • Prior to registering a new entity, it is essential to prepare new Powers of Attorney (PoAs) with updated company details and issue them as required.
  • Update PoAs with counterparties and authorities, where necessary.

Compliance alert for Onshore entities

  • If your entity interacts with onshore or foreign authorities, holds licenses/permits, or registrations, or is involved in legal proceedings, notify the relevant authority or court promptly about any changes in name, legal form, or other relevant details.
  • Some authorities may urge the need for licenses to be reissued due to these alterations, so it’s crucial to be aware of any further steps or formalities that might be required.

Notices for counterparties

It is important to notify the counterparties to ensure transparency, compliance, and smooth continuation of business operations.

  • Alert the counterparties like suppliers, customers, banks, and service providers about upcoming changes.
  • Update commercial contracts to reflect changes in company details, bank accounts, signatories, and addresses as needed.

MS in Al Reem Island

MS offers comprehensive advisory services tailored for new businesses acquiring licenses on Al Reem Island in ADGM, while also providing seamless transition services for existing businesses leveraging our Mainland and Free zone license. MS can be your advice partner during this transition, With MS by your side, navigating the transition for Al Reem Island businesses to ADGM becomes simpler and more manageable.

Disclaimer :

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

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Decoding corporate structures: Operational Holding Companies Vs SPVs in ADGM, Abu Dhabi

Decoding corporate structures: Operational Holding Companies Vs SPVs in ADGM, Abu Dhabi
Decoding corporate structures: Operational Holding Companies Vs SPVs in ADGM, Abu Dhabi

In the developing landscape of corporate structures, Operational Holding Companies and Special Purpose Vehicles (SPVs) distinguish themselves as distinct entities, each governed by its own set of legal parameters, requirements, and operational boundaries. It is imperative for entrepreneurs, investors, and professionals to embark on an exploration of these structures. This comprehensive analysis aims to explore the complexities in depth through quantitative dimensions, and regulatory nuances surrounding Operational Holding Companies and SPVs, providing a detailed understanding essential for informed decision-making in the corporate world.

1. Operational Holding Company

Legal Definition: An Operational Holding Company, as per the Abu Dhabi Global Market (ADGM), is defined as a unit primarily engaged in holding the assets and controlling the equity of subsidiary corporations. The holding companies in this class do not provide any other service to the businesses in which the equity is held. It does not administer or manage other units within the group.

Legal Activities: Operational Holding Companies are permitted to conduct additional operational activities, such as trading or providing services, alongside their primary role as asset holders. However subject to ADGM’s approval, they can conduct head office and proprietary investment activities.

Visa Eligibility and Office Space: A minimum of a desk space is mandate ory requirement to incorporate an operational holding company and are eligible for a visa in proportion to their office space. For one dedicated desk they can have 2 visas.

Other Legal Considerations: There is no specific nexus requirement for establishing an Operational Holding Company in ADGM.

2. Special Purpose Vehicle (SPV):

Legal Definition: An SPV, according to ADGM regulations, is a separate legal entity formed for a specific purpose, often to hold assets, issue securities, or securitize assets. Its activities are limited to the purpose for which they were established.

Legal Activities: SPVs are strictly prohibited from engaging in operational and commercial activities and are primarily used for holding ownership of assets or securities, as stated in ADGM regulations.

Visa Eligibility and Nexus Requirement: ADGM regulations stipulate a nexus requirement for establishing SPVs. The nexus can be demonstrated through various criteria, including

ownership/control by UAE or GCC entities, holding assets in the region, or facilitating transactions with real or economic benefit to the UAE.

Office Space Requirement: SPV needs to take office space but can use the registered address of a Company service provider.

Regulatory and Administrative Requirements

Appointment of Corporate Service Provider: While Operational Holding Companies do not necessitate the appointment of a corporate service provider, ADGM mandates that SPVs must appoint a registered Company Service Provider (CSP).

Fees and Incorporation Process: Incorporation fees for Operational Holding Companies in ADGM amount to 10,000 USD whereas SPVs incur a fee of 1900 USD. The timeline for incorporation for both entities is 23 weeks, inclusive of initial onboarding processes, application preparation, and ADGM review and approval.

Shareholder, Director, and Authorized Signatory: Both Operational Holding Companies and SPVs require a minimum of one shareholder and director, who can be foreign individuals or corporate entities. An authorized signatory who is a UAE resident is also mandated for both entities.

The distinction between Operational Holding Companies and Special Purpose Vehicles (SPVs) is more than just legal jargon—it’s a path for strategic decision-making as both are considered excellent tools for structuring. Whether you’re navigating asset management or pursuing targeted objectives, understanding these entities’ unique roles and regulatory landscapes is your way to success in the Abu Dhabi Global Market (ADGM) and beyond

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

Al Reem Island Businesses: Obtain you ADGM Licenses in Easy steps
Al Reem Island Businesses: Obtain you 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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ADGM leads the way: Abu Dhabi caps off 2023 as the region’s largest financial hub

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

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Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!

Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!
Calling Al Reem Island Businesses: Secure Your ADGM License Before Opportunities End!

The expansion of Al Reem Island to ADGM’s jurisdiction marks a groundbreaking moment in Abu Dhabi’s path to financial leadership. With Al Reem joining Al Maryah Island as a financial-free zone, the expansion aims to offer tax-friendly jurisdiction, attracting international companies with eligible income to establish their presence in Abu Dhabi’s expanding financial landscape. The expansion was confirmed in line with the UAE Cabinet Resolution No. 41 of 2023 on April 24, 2023, reinforcing Abu Dhabi’s economic vision, positioning ADGM as the global financial hub. 

Unlocking Opportunities: Advantages of Establishing Your Business in ADGM

Whether you are a startup looking to flourish in Al Reem Island or an established corporation seeking new opportunities, ADGM offers you the ideal environment to unlock your full potential and achieve sustainable growth. Businesses in ADGM leverage distinct advantages in the direct application of English common law, fostering legal certainty. With an array of in-house services, companies streamline operations. Digital registration simplifies setup processes, and activating the e-records, e-contracts, and e-signatures enhances working efficiency. Access to the ADGM ecosystem provides better networking opportunities and synergies, improving growth and sustainability.

Al Reem businesses: Prepare for Your 100% Fee Waiver!

The business operating at Al Reem should be conscious of the timeline and deadlines required to access ADGM’s incentives. As of now, 31st December 2024 marks the final date of the transition period for the existing Al Reem Island businesses. After the designated timeline, the existing license becomes invalid in Al Reem by 1st January 2025. Obtain the ADGM license before the deadline and consider the key dates and ADGM regulations for a smooth transition process.

The transition period marks its final expedition on 31st December 2024. Companies undergoing transition can benefit from fee waivers and incentives based on the completion of the transition process. Al Reem businesses including, healthcare, hospitality, retail, construction, real estate, professional service businesses, etc. (excluding financial services) can secure an ADGM license without any registration fee until October 31, 2024. Simply ensure your license lists an Al Reem address and has no outstanding fines.

Business Future with ADGM

MS Group offers comprehensive advisory services for new businesses seeking licenses to operate within the ADGM jurisdiction on Al Reem Island. It’s not just a jurisdictional expansion—it’s a strategic leap toward establishing ADGM as the ultimate destination for businesses worldwide. With MS Group by your side, brace yourself for a business adventure in ADGM, where opportunity and innovation converge to propel your business toward success. 

Disclaimer :

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

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ADGM Transition: The Sooner, the Better – Here’s Why

ADGM Transition: The Sooner, the Better - Here's Why
ADGM Transition: The Sooner, the Better - Here's Why

For entrepreneurs eyeing promising business opportunities in the UAE, selecting the right location is crucial for success. While each emirate holds potential, Abu Dhabi stands out as the optimal choice for driving business expansion. At the heart of Abu Dhabi’s business excellence is the Abu Dhabi Global Market (ADGM), playing a pivotal role in fostering the growth of the financial services industry.
The ADGM’s influence is now expanding as part of the UAE’s ambitious economic diversification strategy. In line with a recent Cabinet resolution, Reem Island is set to join its jurisdiction as a financial-free zone, alongside Al Maryah Island. This move increases the combined geographic area of the district to approximately 1,438 hectares, marking a significant tenfold expansion. This strategic initiative reinforces Abu Dhabi’s commitment to growing its financial sector and presents a compelling opportunity for entrepreneurs seeking a thriving business landscape.

Milestone Achieved: ADGM Extends Reach to Al Reem Island

On April 24, 2023, Abu Dhabi Global Market (ADGM), the powerhouse International Financial Centre of Abu Dhabi, achieved a breakthrough by extending its reach to Al Reem Island. This groundbreaking move, as dictated by the UAE Cabinet Resolution No. 41 of 2023, perfectly dovetails with Abu Dhabi’s ambitious economic vision and diversification strategy, firmly establishing ADGM as a bona fide global financial hotspot. Now, the existing business in Al Reem must obtain an ADGM license and the businesses that are planning to establish must submit their license applications to ADGM.

Navigating the Transition: Key Dates and Considerations

For existing businesses on Al Reem Island, a transition period has been established until the 31st of December 2024. During this time, businesses can continue operations as usual, exempt from ADGM’s regulations. However, they are encouraged to obtain an ADGM license before the deadline. Existing Al Reem Island businesses can choose to renew their Abu Dhabi Department of Economic Development (ADDED) license or apply for an ADGM license or permit. Starting from the 1st of November 2023, businesses planning to establish a new presence on Al Reem Island must submit their license applications to ADGM. The online registry provides a streamlined process for submitting applications. The expansion of ADGM’s jurisdiction brings forth new opportunities for businesses, with benefits including the direct application of English common law and a business-friendly environment. Note that, there are attractive incentives for the business which complete the process sooner.

A Financial Adventure Unfolds on Al Reem Island with MS

ADGM, with its unparalleled application of English common law, a vibrant and diverse talent pool, and a flourishing community vibe, emerges as the ultimate magnet for international businesses. It’s not just a jurisdiction expansion; it’s a strategic leap toward turning ADGM into the go-to destination for businesses worldwide. The allure of a dynamic financial landscape, coupled with the unique blend of legal prowess and cultural richness, makes ADGM an irresistible hub for those looking to thrive in the global marketplace.

Disclaimer :

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

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Urgent Compliance Alert: Deadline Approaching for CRS/FATCA Self-Assessment in DIFC and ADGM

Urgent Compliance Alert: Deadline Approaching for CRS/FATCA Self-Assessment in DIFC and ADGM


You might be familiar with the current outreach efforts from the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC), urging entities to promptly address the pressing need for compliance with the CRS/FATCA self-assessment. This latest regulatory push serves as a reminder of the crucial importance of keeping pace with the continually evolving realm of financial standards.
A Roadmap for CRS/FATCA Self-Assessment Compliance in DIFC and ADGM
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has levied fines totaling AED 170,000 on six financial institutions due to violations of the Common Reporting Standard Regulations (CSR) 2017. This case is a true indication of how crucial is to stay informed about the latest requirements to ensure compliance in the financial landscape. Both the Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) have issued urgent directives related to CRS/FATCA self-assessment.

Understanding more about CRS and FATCA can be an add-on:

Common Reporting Standard (CRS)

Common Reporting Standard (CRS), a regulatory cornerstone developed by the Organisation for Economic Co-operation and Development (OECD) and established in the UAE in 2017 is for guiding the gathering and international exchange of financial account and tax-related information. The CRS outlines the specific parameters within which financial institutions are required to operate, defining the scope of financial information to be collected and reported. Moreover, it sheds light on the due diligence procedures these financial entities must follow.

The Foreign Account Tax Compliance Act (FATCA)

The Foreign Account Tax Compliance Act (FATCA) is a law intended to curb the practice of using offshore accounts and financial assets to evade U.S. taxes. Passed as part of the HIRE Act in 2010, FATCA requires U.S. persons, foreign financial institutions (FFIs), and other non-financial foreign entities (NFFEs) to provide the United States Department of the Treasury reporting on foreign assets or be subjected to serious penalties.

Let’s go through the requirements of both DIFC and ADGM:

Time is of the essence when it comes to compliance.

Entities in DIFC are required to complete and submit the self-assessment form to [email protected] by February 28, 2024, to avoid penalties.

If your entity was newly licensed in ADGM during 2023, the Entity Self-Certification Form (SCF) must reach [email protected] by April 30, 2024, to mitigate potential consequences.

For all the other ADGM entities, you may complete the updated SCF within the stipulated deadline informed to you by the authority.

How MS can help you for your seamless compliance with CRS/FATCA self-assessment:

Stay ahead of the curve! Our Regulatory and Compliance Assistance Team will guide your organization through all the compliance requirements detailed in the latest directives from DIFC and ADGM. Don’t hesitate to get in touch; together, let’s ensure that your entity not only fulfills but exceeds its obligations under these vital directives.
In conclusion, staying informed and compliant with the latest DIFC and ADGM requirements for CRS/FATCA self-assessment is vital for the financial growth of your entity. Act promptly, meet deadlines, and consider partnering with MS for a smooth and reliable compliance journey. Your entity’s financial well-being is our priority!

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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 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/complaince advice. The content posted is subject to future amendments/changes/clarifications in the regulation by the authorities. For any clarifications, you may contact our tax team.