ADGM has announced a revised fee schedule for obtaining and renewing commercial licences, effective from January 1.

The changes, which include substantial reductions in fees for non-financial and retail businesses, aim to further enhance ADGM’s business-friendly ecosystem.

The new fee structure, which follows the conclusion of the Al Reem Island transition period on December 31, 2024, sees fee cuts of up to 50 per cent or more for businesses in the non-financial and retail sectors within the international financial centre’s jurisdiction, which includes Al Maryah and Al Reem Islands.

Key fee changes introduced by ADGM

Non-financial sector

• Initial registration fees have been reduced from $10,000 to $5,500.
• Annual licence renewal fees are now set at $5,000, down from $8,000.

Retail sector

• Initial registration fees are cut from $6,000 to $2,500.
• Annual licence renewal fees are reduced from $4,000 to 2,000.

These changes are part of the international financial centre’s ongoing efforts to make the jurisdiction more attractive and accessible to a wider range of businesses.

Broader changes in the fee structure

While the non-financial and retail sectors benefit from substantial reductions, other categories will see fee adjustments:

• Financial sector: Initial registration fees will rise from $15,000 to $16,700, with annual renewals increasing from $13,000 to $16,200.
• Tech startups: The fees for both new registrations and annual renewals will increase from $1,000 to $1,500.

Additionally, all businesses across the international financial centre will be subject to a $300 data protection fee at the time of both new registration and annual renewal.

Fee structure based on consultations with the centre’s business community

The fee updates follow a series of consultations with the ADGM business community in 2023, focusing on expanding the jurisdiction and improving the ease of doing business.

ADGM’s Registration Authority (RA) used the feedback to conduct a thorough review of its fee structure, ensuring it aligns with the evolving commercial landscape and facilitates a smooth transition for businesses in the region.

Hamad Sayah Al Mazrouei, CEO of ADGM RA, highlighted the initiative’s significance: “The revised fee structure underscores our ongoing commitment to fostering a dynamic business environment within ADGM. By reducing fees for non-financial and retail businesses, we are further cultivating an ecosystem that supports both new entrants and established firms, reinforcing ADGM’s position as a leading global financial hub.”

With the end of the Al Reem Island transition period, fee exemptions previously available to qualifying businesses in the non-financial and retail sectors have now been discontinued.

Read: Path to Forward: ADGM reveals its new brand

Several parts of the UAE experienced light rain and cloud conditions on the morning of January 3.

The National Centre of Meteorology (NCM) has forecast partly cloudy to cloudy conditions for today, with some northern, eastern, and coastal areas seeing occasional rain.

The weather is expected to be humid overnight and into Saturday morning, January 4, in certain inland regions.

The NCM noted that winds will be light to moderate, occasionally intensifying to cause dust.

The winds will be northwesterly, with speeds ranging from 15 to 30 km/h, potentially reaching up to 40 km/h at times.

The Arabian Gulf will experience rough to moderate seas, while the Oman Sea will see moderate to slight waves.

Motorists urged to be careful while driving in the rain

In light of the weather conditions, Dubai Police has issued a warning on X, urging motorists to exercise extra caution.

Oil prices extended gains on Friday after closing at their highest in more than two months in the prior session, amid hopes that governments around the world may increase policy support to revive economic growth that would lift fuel demand.

Brent crude futures rose 22 cents, or 0.3 per cent, to $76.15 a barrel, after settling at its highest since October 25 on Thursday. US West Texas Intermediate crude was up 25 cents, or 0.3 per cent, at $73.38 a barrel, with Thursday’s close its highest since October 14.

Both contracts are on track for their second weekly increase after investors returned from holidays, improving trade liquidity.

Factory activity in Asia, Europe and the US ended 2024 on a soft note as expectations for the New Year soured due to growing trade risks from Donald Trump’s impending return to the US presidency and China’s fragile economic recovery.

“The December PMIs for Asia were a mixed bag, but we continue to expect manufacturing activity and GDP growth in the region to remain subdued in the near term,” Capital Economics analysts said in a note, referring to purchasing managers’ indexes data published on Thursday.

“With growth set to struggle and inflation below target in most countries, we think central banks in Asia will continue to loosen policy.”

Lower interest rates should spur more economic growth that would lead to higher fuel consumption.

Investors are eyeing further interest rate cuts by the Federal Reserve this year to support the US economy, while China’s President Xi Jinping has pledged more proactive policies to promote growth.

“As China’s economic trajectory is poised to play a pivotal role in 2025, hopes are pinned on government stimulus measures to drive increased consumption and bolster oil demand growth in the months ahead,” StoneX analyst Alex Hodes said.

The market also eyes upcoming crude prices from top oil exporter Saudi Arabia. Saudi Arabia may raise crude prices for Asian buyers in February for the first time in three months, tracking gains in Middle East benchmark prices last month, traders said.

In the US, the world’s biggest oil consumer, gasoline and distillate inventories jumped last week as refineries ramped up output, though fuel demand hit a two-year low.

Crude stockpiles fell less than expected, down 1.2 million barrels to 415.6 million barrels last week compared with analysts’ expectations for a 2.8-million-barrel draw.

Traders are paying close attention to recent weather forecasts as expectations of a cold snap in the US and Europe over the coming weeks could boost demand for diesel as a substitute for natural gas for heating.

Investors are also bracing for Trump’s presidency ahead of his January 20 inauguration.

“Trump’s tariffs on China and their impact on global demand patterns will be central to oil prices in 2025,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Dubai Duty Free closed 2024 with a remarkable performance, setting a new annual turnover record of Dhs7.901bn ($2.16bn), bolstered by a significant surge in sales towards the end of the year.

The retailer achieved a milestone in December, posting all-time high monthly sales of Dhs821.94m, marking a 2 per cent increase over December 2023, which had previously been the highest-grossing month in the company’s history.

The December surge was driven by Dubai Duty Free’s 41st anniversary celebrations on December 20, where the retailer offered a 25 per cent discount on a wide range of products.

This special promotion resulted in Dhs59.99m in sales over a 24-hour period.

Sales in November had also shown strong year-on-year growth, setting the stage for the record December figures.

Confectionery emerged as the top-performing category in December, with sales soaring by nearly 29.5 per cent compared to the same month in 2023.

Dubai Duty Free recorded around 56, 649 transactions a day

Throughout 2024, Dubai Duty Free recorded over 20.733 million sales transactions, averaging 56,649 transactions per day.

The operation sold a total of 55.137 million units of merchandise, with an estimated 13.7 million customers visiting the retailer’s arrivals and departures stores.

Online sales also contributed to the success, reaching Dhs97m, accounting for 2.5 per cent of the company’s total annual sales.

Sales in departures stores, which represent the bulk of the operation, edged up by 0.84 per cent year-on-year to Dhs7.121bn, making up 90 per cent of the total turnover.

However, arrivals sales saw a notable decline of 12.21 per cent, totaling Dhs537m, or 6.8 per cent of annual sales.

Looking ahead, Dubai Duty Free plans to continue enhancing its retail operations, with the final phase of renovations in the arrival shops across three terminals scheduled for completion early this year.

Dubai’s real estate market soared to an all-time high in 2024, with transactions reaching 180,900 worth Dhs522.1bn, setting new records for the emirate.

This is according to data released by UAE real estate firm fäm Properties, which highlights a significant surge in both transaction volume and value last year.

The company says the emirate witnessed a 36 per cent increase in sales volumes in 2024 and a 27 per cent rise in value compared to the previous record of 133,100 transactions worth Dhs411.1bn in 2023.

“Sales values broke historical records, and the market’s strong rental demand and luxury resilience continue to attract global investors,” said Firas Al Msaddi, CEO of fäm Properties.

Primary market drives growth

The primary market was the standout performer, driven by new project launches and favourable payment plans that attracted foreign investors, according to fäm Properties.

First sales from developers rose 30 per cent year-on-year to Dhs334.1bn, with transaction volumes up 51 per cent to 119,800. The average price per square foot increased by 10 per cent to Dhs1,600.

Key factors for this uptick included residency incentives and visa reforms that bolstered investor confidence and demand for off-plan properties.

Al Barsha South 4 emerged as the top-performing area for first sales, recording 12,878 transactions worth Dhs13.5bn. Business Bay, however, led in sales value, with 6,888 transactions worth Dhs21.1bn.

Top 10 performing areas – primary market:

1. Al Barsha South 4 – 12,878 transactions worth Dhs13.5bn
2. Business Bay – 6,888 transactions worth Dhs21.1bn
3. Wadi Al Safa 5 – 6,602 transactions worth Dhs13.6bn
4. Madinat Al Mataar – 6,254 transactions worth Dhs17.0bn
5. Hadaeq Sheikh Mohammed Bin Rashid – 5,246 transactions worth Dhs13.4bn
6. Madinat Hind 4 – 5,152 transactions worth Dhs8.4bn
7. Madinat Dubai Almelaheyah – 4,818 transactions worth Dhs12.7bn
8. Al Merkadh – 4,474 transactions worth Dhs6.2bn
9. Jabal Ali 1 – 4,335 transactions worth Dhs6.7bn
10. Bukadra – 4,215 transactions worth Dhs9.9bn

Secondary market stays strong

The secondary market also experienced robust growth.

Re-sales rose 21 per cent to Dhs188.1bn, with transaction volumes up 14 per cent to 61,100. The average price per square foot increased by 12 per cent to Dhs1,300, reflecting high rental yields and demand for ready properties.

Business Bay topped the re-sale market with 5,142 transactions worth Dhs9.8bn, while Dubai Marina led in value, with 4,924 transactions worth Dhs15.2bn, maintaining its status as a premium waterfront destination.

Top 10 performing areas – secondary market:

1. Business Bay – 5,142 transactions worth Dhs9.8bn
2. Dubai Marina – 4,924 transactions worth Dhs15.2bn
3. Al Barsha South 4 – 4,635 transactions worth Dhs7.0bn
4. Al Thanyah 5 – 3,305 transactions worth Dhs8.1bn
5. Al Merkadh – 3,155 transactions worth Dhs8.3bn
6. Downtown Dubai – 3,122 transactions worth Dhs12.7bn
7. Jabal Ali 1 – 2,364 transactions worth Dhs5.0bn
8. Al Warsan 1 – 2,126 transactions worth Dhs1.2bn
9. Wadi Al Safa 5 – 2,125 transactions worth Dhs5.9bn
10. Hadaeq Sheikh Mohammed Bin Rashid – 2,106 transactions worth Dhs9.8bn

Diverse market appeal

A total of 14 unique areas feature across both the primary and secondary market lists, with some areas such as Business Bay, Al Barsha South 4, and Wadi Al Safa 5 excelling in both segments.

Meanwhile, apartments accounted for the bulk of sales, with transactions rising 42 per cent year-on-year to 141,168 units worth Dhs260.6bn. Villas followed with 30,938 transactions worth Dhs164.1bn, a 21.1 per cent increase.

Commercial property and land plots also saw steady growth, with 4,304 commercial units sold for Dhs9.7bn and 4,352 plots fetching Dhs86.5bn.

“This was a remarkable year for Dubai real estate, with transaction volumes growing despite global economic uncertainties,” added Al Msaddi.