Abu Dhabi’s ADGM announces major licence fee reduction for multiple sectors

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The Abu Dhabi Global Market (ADGM), the UAE capital’s international financial centre, has unveiled substantial revisions to its licensing fee structure. These changes are part of its transitional arrangements for businesses on Al Reem Island.

Starting January 1, 2025, ADGM will introduce major fee reductions of 50 per cent or more for non-financial and retail licences within its jurisdiction. This initiative aims to enhance ADGM’s business environment, making it more attractive and accessible for a diverse range of enterprises.

The new fee structure will apply across ADGM’s jurisdiction, including both Al Maryah and Al Reem Island.

Fee reductions

Under the new fee schedule, registration fees for non-financial businesses will drop from $10,000 to $5,000. Annual licence renewal fees for the same category will decrease from $8,000 to $5,000.

Retail businesses will also benefit from significant reductions, with new registration fees slashed by two-thirds from $6,000 to $2,000.

Annual licence renewals for retail businesses will see a 50 per cent reduction, bringing the fees down to $2,000.

Fee increases

Conversely, the fee structure for financial businesses will see an increase, with new registration fees rising from $15,000 to $20,000 and annual renewals from $13,000 to $15,000.

Tech and fintech startups will experience a minor fee adjustment, with both new and renewal fees changing from $1,000 to $1,500. The fees for the Special Purpose Vehicle (SPV) category will remain unchanged at $1,900.

The revised licensing fees will take effect from January 1, 2025, coinciding with the end of the current transition period on December 31.

Consultation and review

These fee revisions follow a series of consultations conducted in 2023 by ADGM with a focus group of Al Reem Island businesses to gather feedback on the expansion of ADGM’s jurisdiction.

These discussions covered major topics such as the ease of obtaining an ADGM commercial licence and the associated fees.

Subsequently, the Registration Authority (RA) of ADGM undertook a comprehensive review of its fee structure to meet the expectations of its expanded jurisdiction and commercial landscape, ensuring a smooth transition for new business segments.

Hamad Sayah Al Mazrouei, the CEO of ADGM RA said, stated, “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.”

The previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island will end on October 31, 2024. The full fee schedule for new business registrations and licence renewals from 1 January 2025 will be published in December.

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