ADGM Announces Significant Reductions In Commercial Licence Fees Effective January 2025

Abu Dhabi Global Market (ADGM), the UAE capital's international financial centre, has introduced a revised fee structure for commercial licences. Starting 1st January 2025, non-financial and retail businesses will benefit from fee reductions of 50% or more within ADGM's jurisdiction. This move is designed to make ADGM's business environment more appealing and accessible to diverse enterprises.

The updated fee schedule offers significant savings for non-financial businesses. Initial registration fees drop from US$10,000 to US$5,500, while annual licence renewals decrease from US$8,000 to US$5,000. Retail businesses also see reductions, with initial registration fees cut from US$6,000 to US$2,500 and annual renewals from US$4,000 to US$2,000.

These changes coincide with the end of the Al Reem Island transition period on 31st December 2024. The new fees apply across ADGM’s jurisdiction, including Al Maryah and Al Reem Islands. The adjustments follow extensive consultations in 2023 with ADGM’s business community about jurisdictional expansion and improving business ease.

The Registration Authority (RA) conducted a thorough review based on feedback to ensure the new structure aligns with ADGM’s evolving commercial landscape. This review supports a smooth transition for expanding business segments within ADGM. The revised fees aim to enhance ADGM's position as a leading international financial hub.

Hamad Sayah Al Mazrouei, CEO of ADGM RA, stated: "The revised fee structure reflects our commitment to supporting businesses within ADGM’s thriving jurisdiction. By significantly reducing fees for non-financial and retail categories, we aim to cultivate a vibrant and efficient business ecosystem."

Changes in Financial and Tech Startup Fees

With the conclusion of the Al Reem Island transitional period on 31st December 2024, previous fee exemptions for qualifying non-financial and retail businesses have ended. Other categories also see adjustments: Financial category registration fees rise from US$15,000 to US$16,700, with annual renewals increasing from US$13,000 to US$16,200.

Tech startups face adjusted fees of US$1,500 for both new registrations and renewals. Additionally, a data protection fee of US$300 will continue across all categories during new registration and annual renewal under the new schedule.

The updated fee structure aims to support ADGM’s growing business ecosystem by making it more attractive for various enterprises while maintaining its status as an international financial centre.

With inputs from WAM