Gulf Today, Thursday, Jul 18, 2024 | Muharram 12, 1445

ADGM announces fee revision for commercial licences starting 2025

United Arab Emirates:

Abu Dhabi Global Market (ADGM) has announced significant revisions to its licencing fee schedule as part of its transitional arrangements for Al Reem Island businesses.

Starting from Jan.1, 2025, ADGM will implement major reductions of 50 per cent or more for obtaining non-financial and retail licences within its jurisdiction. This initiative aims to enhance ADGM’s business ecosystem, making it more attractive and accessible for various enterprises.

Under the revised fee schedule, new registrations within the non-financial category of businesses will see fees reduced from $10,000 to $5,000.

In contrast, the annual licence renewal fees for the same category will decrease from $8,000 to $5,000. Fees for the retail category have also been significantly reduced, with new registration fees cut by two-thirds from $6,000 to $2,000. Licence renewals for the retail category will also see a 50 per cent reduction, bringing the annual renewal fees down to $2,000.

The effective date of the revised licensing fees has been set as 1st January 2025 to align with the expiry of the current transition period, which ends on 31st December 2024. The new fee structure will apply across ADGM’s jurisdiction, including Al Maryah and Al Reem Island.

The introduction of these fee revisions is in line with the series of consultations conducted in 2023 by ADGM with a focus group of Al Reem Island businesses to gather feedback and insights related to ADGM’s jurisdiction expansion. These discussions covered major topics such as the ease of obtaining an ADGM commercial licence and the relevant fees.

Following these consultations, the Registration Authority (RA) of ADGM conducted a comprehensive review of its fee structure to meet the expectations of its newly expanded jurisdiction and commercial landscape, ensuring a smooth transition for its new business segments.

Hamad Sayah Al Mazrouei, CEO of ADGM RA, said, “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.

“Building on these efforts, we have now revised our fee structure to include significant reductions for the same categories starting next year. Our aim is to minimise potential disruptions for businesses transitioning to an ADGM licence, enabling them to operate efficiently within our jurisdiction.”

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

Fee revisions for other categories include changes in the fee structure within the financial category, increasing from $15,000 to $20,000 and renewals rising from $13,000 to $15,000 for an annual ADGM licence.

Additionally, there is a minor adjustment for tech and fintech startups, with fees changing from $1,000 to $1,500 for both new and existing licence renewals. The fees for the Special Purpose Vehicle (SPV) category remain unchanged at $1,900.

The full fee schedule, which will apply for new business registrations and licence renewals from 1st January 2025, will be published in December.

These fee revisions follow a series of consultations conducted in 2023 by ADGM with a focus group of Al Reem Island businesses to gather feedback on the expansion of ADGM’s jurisdiction. These discussions covered major topics such as the ease of obtaining an ADGM commercial licence and the associated fees.

Subsequently, the Registration Authority (RA) of ADGM undertook a comprehensive review of its fee structure to meet the expectations of its expanded jurisdiction and commercial landscape, ensuring a smooth transition for new business segments.

The previously introduced fee exemption for qualifying non-financial and retail businesses on Al Reem Island will end on October 31, 2024. The full fee schedule for new business registrations and licence renewals from 1 January 2025 will be published in December.

ADGM’s commitment to transparency, accountability and market integrity has been “strongly reflected” through its coordinated efforts to sustain these pillars.

ADGM, the international financial centre of the UAE’s capital, has announced the publication of its whistleblowing framework, “a coordinated initiative between ADGM Authorities to sustain transparency, accountability and market integrity within the centre.”

The framework which is part of ADGM’s progressive business environment complements its existing regulatory frameworks.