Abu Dhabi Global Market (ADGM) has announced significant reductions in licensing fees for non-financial and retail businesses, set to take effect from January 1, 2025. This move aims to make it more affordable for businesses to operate within the ADGM jurisdiction, particularly benefiting those on Al Reem Island.
licensing fees: Lower Costs for Businesses
Under the revised fee structure, businesses applying for non-financial licenses will see their initial registration fees cut in half, from $10,000 to $5,000. Annual renewal fees for these businesses will also drop, now set at $5,000 instead of $8,000. Similarly, retail businesses will experience reduced registration fees, down from $6,000 to $2,000, with renewal fees also reduced to $2,000.
Impact on Financial and Tech Sectors
While non-financial and retail sectors enjoy fee reductions, the financial sector will see slight increases. Registration fees for financial businesses will rise to $20,000, and renewal fees will increase to $15,000. Tech and fintech startups will now pay $1,500 for both initial registration and renewals, up from the previous $1,000. Fees for Special Purpose Vehicles (SPVs) remain unchanged at $1,900.
Background and Consultations
The decision to revise these fees follows extensive consultations conducted throughout 2023 with stakeholders from Al Reem Island businesses. Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, emphasized the aim of supporting businesses transitioning to ADGM licenses, ensuring smooth operations and minimal disruptions.
As businesses prepare for the new fee structure taking effect in 2025, it’s crucial to note that current fees remain in place until December 31, 2024. This allows businesses time to strategize and adapt to the forthcoming changes. ADGM encourages businesses to stay informed through official announcements and guidelines.
The reduction in licensing fees underscores ADGM’s commitment to fostering a conducive environment for business growth and investment. For businesses considering expansion or establishing a presence in Abu Dhabi’s financial hub, these revised fees present an opportunity to lower operational costs and enhance profitability.
For more detailed information on how these changes may impact your business or to explore licensing opportunities within ADGM, visit their official website or contact ADGM’s Registration Authority directly.
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