ADGM To Slash Licence Fees For Non-Financial And Retail Sectors From 2025

Abu Dhabi Global Market (ADGM) has announced substantial changes to its licencing fee structure, effective from 1st January 2025. These revisions aim to make ADGM's business environment more appealing and accessible, particularly for non-financial and retail enterprises. The new fee schedule will see reductions of 50% or more for obtaining licences in these categories.

For non-financial businesses, the registration fees will drop from US$10,000 to US$5,000. Annual renewal fees for this category will also decrease from $8,000 to $5,000. Retail businesses will benefit from even larger cuts; new registration fees will fall by two-thirds from $6,000 to $2,000. Renewal fees for retail licences will be halved to $2,000 annually.

The revised fee structure is set to take effect on 1st January 2025, coinciding with the end of the current transition period on 31st December 2024. This new structure will apply across ADGM's jurisdiction, including Al Maryah and Al Reem Island.

In 2023, ADGM conducted consultations with Al Reem Island businesses to gather feedback on its jurisdiction expansion. These discussions focused on the ease of obtaining an ADGM commercial licence and associated fees. Following these consultations, the Registration Authority (RA) of ADGM reviewed its fee structure comprehensively.

Hamad Sayah Al Mazrouei, CEO of ADGM RA, stated: "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. 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."

Additional Fee Adjustments

The revised fee schedule also includes changes for other business categories. Fees for financial businesses will increase from $15,000 to $20,000 for new registrations and from $13,000 to $15,000 for renewals. Tech and fintech startups will see a minor adjustment with fees rising from $1,000 to $1,500 for both new registrations and renewals.

The Special Purpose Vehicle (SPV) category remains unaffected by these changes; its fees stay at $1,900. The full updated fee schedule will be published in December ahead of its implementation in January 2025.

The cut-off date for the previously introduced fee exemption for qualifying non-financial and retail businesses located on Al Reem Island is set as 31st October 2024.

These measures are part of ADGM's broader strategy to ensure a smooth transition for businesses within its expanding jurisdiction while minimising potential disruptions.

With inputs from WAM