UAE – Mubasher: Abu Dhabi Global Market (ADGM) will implement major reductions of 50% or more for obtaining non-financial and retail licences within its jurisdiction as of 1 January 2025, according to a press release.
This initiative comes in line with ADGM’s efforts to support the seamless transition of Al Reem businesses to ADGM following its expansion to Al Reem Island in 2023.
ADGM further notes that the fee revision will enhance its business ecosystem to make it more attractive and accessible for various enterprises.
The revised licensing fees will come into effect at the beginning of next year to align with the expiry of the current transition period which ends on 31 December 2024. Meanwhile, the full revised fee schedule for both registrations and licence renewals will be published in December.
In addition, the new fee structure will be applicable across ADGM’s jurisdiction that includes both Al Maryah and Al Reem Island.
Details of New Fees
The 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 will be cut by two-thirds from $6,000 to $2,000.
Licence renewals for the retail category will see a 50% reduction, bringing the annual renewal fees down to $2,000.
There will be fee revisions for other categories that include an increase in the fee structure within the financial category from $15,000 to $20,000 and renewals rising from $13,000 to $15,000 for an annual ADGM licence.
As for tech and fintech startups, a minor adjustment with fees will take effect as an increase from $1,000 to $1,500 for both new and existing licence renewals.
On the other hand, the fees for the Special Purpose Vehicle (SPV) category remain unchanged at $1,900.
CEO of ADGM Registration Authority (RA), Hamad Sayah Al Mazrouei, 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.”
Al Mazrouei elaborated by saying: “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.”
The CEO concluded: “Our aim is to minimise potential disruptions for businesses transitioning to an ADGM licence, enabling them to operate efficiently within our jurisdiction.”
Meanwhile, the cut-off date for the previously introduced fee exemption for qualifying non-financial and retail businesses located on Al Reem Island is 31 October 2024.
