The Abu Dhabi Global Market (ADGM) has unveiled substantial fee reductions for obtaining non-financial and retail licences, effective from January 1, 2025.
These changes are part of transitional arrangements for businesses on Al Reem Island, aimed at facilitating smoother operations within the ADGM jurisdiction, which covers Al Maryah and Al Reem Islands.
Under the new fee structure, the cost of registering a non-financial business will drop from $10,000 to $5,000. The annual renewal fee for these licences will also decrease from $8,000 to $5,000.
For retail businesses, the registration fee will be reduced from $6,000 to $2,000, and the renewal fee will see a 50% reduction, bringing it down to $2,000.
The revised fees will take effect as the current fee schedule expires on December 31, 2024. Previously, qualifying non-financial and retail businesses on Al Reem Island enjoyed an exemption from ADGM commercial licence fees until October 31, 2024.
Other categories will also see changes: the financial category’s registration fee will rise from $15,000 to $20,000, with renewal fees increasing from $13,000 to $15,000. For tech and fintech startups, both new and renewal fees will change from $1,000 to $1,500. The fee for Special Purpose Vehicles (SPVs) remains unchanged at $1,900.
The ADGM emphasized that these revisions followed extensive consultations with Al Reem Island businesses throughout 2023. Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, explained that the adjustments are intended to minimize disruptions for businesses transitioning to an ADGM licence and to support their efficient operation within the ADGM’s jurisdiction.
“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,” said Al Mazrouei.
