The Abu Dhabi Global Market (ADGM) has announced significant reductions in licensing fees, with a decrease of 50 per cent or more for non-financial and retail licences within its jurisdiction. These changes, effective from January 1, 2025, are part of the transitional arrangements for businesses on Al Reem Island. The ADGM, the international financial centre of the UAE’s capital, oversees both Al Maryah and Al Reem Island.
Under the new fee structure, non-financial businesses will see their registration fees drop from $10,000 to $5,000, with annual licence renewal fees also reduced from $8,000 to $5,000. Retail category fees have been substantially cut, with new registration fees falling from $6,000 to $2,000, and licence renewals halved to $2,000. These revised fees come into effect on January 1, 2025, following the expiry of current fees on December 31.
Previously, qualifying non-financial and retail businesses on Al Reem Island were exempt from paying any fees for obtaining ADGM commercial licences until October 31, 2024. Other fee revisions include adjustments within the financial category, where fees have risen from $15,000 to $20,000 for new registrations and from $13,000 to $15,000 for renewals. Tech and fintech startups now face fees of $1,500 for both new and existing licence renewals, while Special Purpose Vehicle (SPV) category fees remain at $1,900.
The ADGM’s decision to revise fees followed a series of consultations in 2023 with a focus group of Al Reem Island businesses. Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, highlighted the organisation’s commitment to reducing financial impact on businesses, stating, “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.”
