ADGM Announces Over 50% License Fee Reductions
Abu Dhabi’s international financial centre, ADGM, has announced a significant reduction in select fees, set to take effect on January 1, 2025. This change aligns with the conclusion of the current transition period on December 31, 2024, and is part of ADGM’s strategic plan to support businesses on Al Reem Island.
Starting next year, ADGM will implement a 50% or more significant reduction in fees for obtaining non-financial and retail licenses within its jurisdiction. This initiative aims to enhance ADGM’s business ecosystem, making it more attractive and accessible for various enterprises.
ADGM License Cost Reduction Effective Date
The revised licensing fees will be effective from January 1, 2025, coinciding with the end of the current transition period on December 31, 2024. The new fee structure will apply across ADGM’s jurisdiction, including Al Maryah and Al Reem Island.
The fee revisions stem from comprehensive consultations conducted by ADGM in 2023. These consultations involved focus groups from Al Reem Island businesses to gather feedback and insights regarding ADGM’s jurisdiction expansion.
ADGM License Revised Fee Schedule
Under the revised fee schedule:
- New registrations in the non-financial category will see fees reduced from $10,000 to $5,000.
- Annual license renewal fees for the same category will decrease from $8,000 to $5,000.
- For the retail category, new registration fees will be cut by two-thirds from $6,000 to $2,000.
- The retail category’s annual license renewal fees will be reduced by 50% to $2,000.
Other Fee Revisions and Exemptions
The cut-off date for the previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island is October 31, 2024. Additionally, fee revisions for other categories include:
- Financial category fees increasing from $15,000 to $20,000 for new licenses, and renewals rising from $13,000 to $15,000.
- Tech and fintech startups will see fees change from $1,000 to $1,500 for both new and existing license renewals.
- Fees for the special purpose vehicle (SPV) category remain unchanged at $1,900.
The complete fee schedule for new business registrations and license renewals effective January 1, 2025, will be published in December.
Proactive Initiatives by ADGM
ADGM and its Registration Authority have introduced various initiatives to facilitate a seamless transition for businesses. They 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, ADGM has now revised its fee structure to include significant reductions, starting next year. This move aims to minimize potential disruptions for businesses transitioning to an ADGM license, enabling them to operate efficiently within the jurisdiction.
Opening a Company in ADGM with NH Management
ADGM’s proactive measures are designed to support businesses and foster a thriving business environment. For more detailed information or to discuss how these changes may impact your business, reach out to NH Management. We are here to help you navigate these changes and ensure a smooth transition. Contact us at info@nhmanagement.com or via call +97142221327.
