Abu Dhabi: Abu Dhabi Global Market (ADGM), the international financial centre of the UAE's capital, has announced significant revisions to its licensing fee schedule as part of its transitional arrangements for Al Reem Island businesses.
Starting from January 1, 2025, ADGM will implement major reductions of 50 per cent or more for obtaining non-financial and retail licences within its jurisdiction. This initiative aims to enhance ADGM's business ecosystem, making it more attractive and accessible for various enterprises.
Under the revised fee schedule, new registrations within the non-financial category of businesses will see fees reduced from $10,000 to $5,000. In contrast, the annual licence renewal fees for the same category will decrease from $8,000 to $5,000.
Fees for the retail category have also been significantly reduced. New registration fees have been cut by two-thirds from $6,000 to$2,000. Licence renewals for the retail category will also see a 50 per cent reduction, bringing the annual renewal fees down to $2,000.
The revised licensing fees will become effective on the expiry of the current transition period, which ends on December 31, 2024. The new fee structure will be applicable across ADGM's jurisdiction, which includes Al Maryah and Al Reem Island.
Hamad Sayah Al Mazrouei, CEO of ADGM RA, said, "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. Our aim is to minimise potential disruptions for businesses transitioning to an ADGM licence, enabling them to operate efficiently within our jurisdiction."
The cut-off date for the previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island is October 31, 2024. Fee revisions for other categories include changes in the fee structure within the financial category, increasing from $15,000 to $20,000 and renewals rising from $13,000 to $15,000 for an annual ADGM licence. Additionally, there is a minor adjustment for tech and fintech startups, with fees changing from $1,000 to $1,500 for both new and existing licence renewals. The costs for the Special Purpose Vehicle (SPV) category remain unchanged at $1,900.
The total fee schedule for new business registrations and licence renewals starting January 1, 2025, will be published in December.
