Abu Dhabi (Al-Ittihad)
Abu Dhabi Global Market (ADGM) has announced significant changes to its licensing fees, as part of measures to facilitate the transition process for companies operating on Reem Island. From January 1, 2025, ADGM will begin applying significant reductions of 50% or more on licensing fees for non-financial and retail companies.
This initiative aims to enhance the comprehensive and vital business ecosystem in Abu Dhabi Global Market, thus enhancing the attractiveness and ease of companies from various sectors joining its regulatory framework.
Under the latest amendments, registration fees for the non-financial companies category will be reduced from $10,000 to $5,000, while annual license renewal fees for the same category will be reduced from $8,000 to $5,000. Retail company registration fees have also been significantly reduced by two-thirds from $6,000 to $2,000, while annual license renewal fees for retail companies will be reduced by 50% to $2,000.
The revised fees will come into effect on 1 January 2025, coinciding with the end of the current transitional period on 31 December 2024. The new fee structure will apply across the entire geographical footprint of Abu Dhabi World, including Al Maryah and Reem Islands.
The new fee changes follow a series of consultations conducted by ADGM in 2023 in collaboration with a select group of businesses operating on Reem Island to gather views, feedback and ideas regarding the expansion of ADGM’s geographical reach.
Hamad Sayah Al Mazrouei, CEO of the Registration Authority of ADGM, said: “To ensure a smooth and seamless transition for businesses operating on Reem Island, ADGM and its Registration Authority continue to proactively launch various initiatives, with the interests of the business community at the forefront of every decision we make. In this context, we have studied the financial impact of the transition on different categories of businesses, and have previously exempted eligible non-financial companies and retail companies operating on Reem Island from fees during the transition period.
“In continuation of these efforts, we have reviewed the fee structure by applying significant reductions for these categories of companies starting next year, with the aim of mitigating any potential consequences for companies during their transition to the Abu Dhabi Global Market, and to enable them to conduct their business effectively and efficiently in the market.”
It is noteworthy that the deadline for the fee waiver initiative previously provided by Abu Dhabi Global Market for eligible companies operating in the non-financial and retail sectors on Reem Island is October 31, 2024.
Abu Dhabi Global Market also reviewed the fees applied to the financial companies category, which included raising the licensing fees from $15,000 to $20,000, in addition to raising the annual license renewal fees from $13,000 to $15,000.
On the other hand, an amendment was made to the fees applied to startups operating in the field of technology and financial technology, as the registration and renewal fees were raised from $1,000 to $1,500. No amendments were made to the fees for the category of special purpose companies, as they remained at $1,900.
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