Abu Dhabi to slash some business licence fees by 50%

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

Starting from January 1, 2025, ADGM will implement reductions of 50 per cent or more for obtaining non-financial and retail licences within its jurisdiction.

This initiative aims to enhance the financial centre'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, while 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 new fee structure will be applicable across ADGM’s jurisdiction, which includes both Al Maryah Island and Al Reem Island.

The introduction of these fee revisions is in line with 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.

Following these consultations, the Registration Authority 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.

"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," said Hamad Sayah Al Mazrouei, the CEO of ADGM's Registration Authority.

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

Fee revisions for other categories include changes 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 that will be applicable for new business registrations as well as licence renewals from January 1, 2025, will be published in December.