(MENAFN- Khaleej Times) Published: Wed 17 Jul 2024, 11:07 AM

Last updated: Wed 17 Jul 2024, 11:16 AM

The Abu Dhabi Global Market (ADGM) has announced reductions of 50 per cent or more for obtaining non-financial and retail licences within its jurisdiction. The revised licensing fee schedule is effective from January 1, 2025, and is part of its transitional arrangements for Al Reem Island businesses.

The international financial centre of the UAE's capital, the ADGM's jurisdiction includes both Al Maryah and Al Reem Island.

Under the revised structure, new registrations within the non-financial category of businesses will see fees reduced from $10,000 to $5,000. The annual licence renewal fees for the same category will decrease from $8,000 to $5,000.

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Fees for the retail category have also been significantly reduced, with new registration fees cut from $6,000 to $2,000. Licence renewals for the retail category will also see a 50 per cent reduction, bringing the fee down to $2,000.

The effective date of the revised licensing fees has been set as January 1 next year, as the current ones expire on December 31.

Qualifying non-financial and retail businesses located on Al Reem Island were previously exempted from paying any fees for obtaining ADGM commercial licences until October 31, 2024.

Fee revisions for other categories include changes in the structure within the financial category, which now increases from $15,000 to $20,000. Renewals will increase from $13,000 to $15,000. For tech and fintech startups, the fees have changed 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.

According to the ADGM, the revised fees came after a“series of consultations” conducted in 2023 with a focus group of Al Reem Island businesses.

Hamad Sayah Al Mazrouei, the CEO of ADGM's Registration Authority (RA), said:“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.”

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