While there are fee reductions of 50% or more apply to non-financial and retail businesses within the ADGM jurisdiction, financial companies and tech start-ups see licence cost rises.

This initiative aims to enhance ADGM’s business ecosystem, making it more attractive and accessible for various enterprises.

Non-Financial Category

• Initial registration fees are reduced from USD 10,000 to USD 5,500
• Annual licence renewal fees are reduced from USD 8,000 to USD 5,000

Retail Category

• Initial registration fees are reduced from USD 6,000 to USD 2,500
• Annual licence renewal fees are reduced from USD 4,000 to USD 2,000

These fee revisions align with the conclusion of the Al Reem Island transition period, which ended on 31 December 2024, and apply across ADGM’s jurisdiction, encompassing Al Maryah and Al Reem Islands.

The updated fee structure follows extensive consultations conducted in 2023 with ADGM’s business community, focusing on jurisdictional expansion and enhancing the ease of doing business. Based on this feedback, the Registration Authority (RA) undertook a comprehensive review to ensure the new structure meets the needs of ADGM’s evolving commercial landscape while supporting a seamless transition for its expanding business segments.

Hamad Sayah Al Mazrouei, the CEO of ADGM RA said: “The revised fee structure reflects our commitment to supporting businesses within ADGM’s thriving jurisdiction.

“By significantly reducing fees for non-financial and retail categories, we aim to cultivate a vibrant and efficient business ecosystem, reinforcing ADGM’s position as a leading international financial hub.”

With the conclusion of the Al Reem Island transitional period on 31st December 2024, fee exemptions previously available to qualifying non-financial and retail businesses have now been discontinued. The updated fee schedule also includes adjustments for other categories:

Financial Category: Initial registration fees increased from USD 15,000 to USD 16,700, with annual renewals rising from USD 13,000 to USD 16,200.

Tech Startups: Fees adjusted from USD 1,000 to USD 1,500 for both new registrations and renewals.

Additionally, a USD 300 data protection fee will continue to be applied across all categories at the time of new registration and annual renewal in the new fee schedule.

Sir Nicholas succeeds Sir Peter Blanchard KNZM, who announced his retirement recently. A formal swearing-in ceremony was conducted in the presence of Ahmed Jasim Al Zaabi, chairman of Abu Dhabi Global Market.

Lord David Hope of Craighead KT, Chief Justice of ADGM Courts said: “Sir Nicholas Patten brings to our Court a distinguished career spanning five decades. He has extensive experience as Queen’s Counsel in property, trust, company and partnership disputes, including insolvency.

“During his judicial career as a judge of the English High Court (Chancery Division) and Court of Appeal, he dealt with a wide range of cases, including contractual and property disputes; company litigation, insolvency proceedings; claims concerning the tracing of assets against former directors and other fiduciaries; and the administration of trusts and estates.

“We are confident that his appointment will strengthen our ability to provide the highest calibre of judicial services, especially to ADGM’s community and the global financial institutions and companies that have selected ADGM as a base for their operation. His wealth of experience will further enhance the Court’s global standing, attracting greater investor interest.”

Sir Nicholas’ career commenced by being called to the Bar by Lincoln’s Inn in 1974. He was appointed Queen’s Counsel in 1988. Between 1988 and 2000, he served as Chairman of the Chancery Bar Association. In 2000, he was appointed as a judge of the High Court (Chancery Division) and was promoted to the Court of Appeal in 2009. During his tenure, he also served as a judge of the Patents Court, overseeing cases involving various aspects of intellectual property law.

As a High Court judge, Sir Nicholas served as Vice-Chancellor of the County Palatine of Lancaster, responsible for organising chancery and mercantile sittings in the North of England. Most recently, he held the role of Treasurer of Lincoln’s Inn.

This results in 112 asset and fund managers now operating in ADGM, managing 141 funds as the number of new licences grew by 20.5% compared to H1 2023.

The workforce grew by over 2,500 at the end of H1 2024 compared to the same period last year and ADGM Al Reem Island expansion fuelled a residential surge with the island’s occupancy rate reaching more than 92% at the end of June 2024.

ADGM said that it has bolstered the financial sector’s contribution to Abu Dhabi’s non-oil economy, which grew to 9.7% in Q1 2024.

Ahmed Jasim Al Zaabi, chairman of ADGM said: “As a catalyst for Abu Dhabi’s financial sector, ADGM’s remarkable growth in the first half of 2024 fosters Abu Dhabi’s position as a premiere hub and a destination of choice for global, regional and local corporations and financial institutions.

“ADGM’s strategies have been aligned with Abu Dhabi’s visionary leadership to position the UAE’s capital as a leading international financial centre. Through the establishment of a thriving ecosystem and our pursuit of innovation, excellence, and strategic development, we are proud to have propelled towards the exceptional success of realising the ADGM Growth Strategy 2023-2027 targets, underscoring the accelerated growth of Abu Dhabi’s financial industry.”

He added: “ADGM’s contribution to Abu Dhabi’s stature as a global financial powerhouse and its sustainable economic growth will continue to capitalise on opportunities that will further elevate Abu Dhabi’s Falcon Economy to unprecedented heights throughout this exceptionally successful year and beyond.”

One of the factors that has supported ADGM’s strong growth in H1 2024 is the significant increase in operational entities, which have risen to 2,088, including 231 financial services entities – a 31% increase in operational entities compared to H1 2023. This growth is also complemented by the number of Financial Services Permissions (FSP) granted in the first six months, equivalent to 42 – a growth of over 90% compared to the June 2023 numbers which stood at 22.

Some of the major names within the asset management sector that have been granted an FSP include AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley. Furthermore, several entities within this space have also received their In-Principle Approval (IPA) including Aspen Digital, Blantyre Capital, Blue Owl, Fiera Capital, Infini Capital, I Squared Capital, Ninety One Gulf Capital, Peninsula, Token Bay Capital, Triton, and Vizier. The pipeline of entities within the asset management sector remains strong across hedge funds, private equity, institutional funds and venture capital firms set to be anchored in ADGM.

Additional financial services entities across banking, payment services, wealth management and insurance sectors have also joined the ADGM ecosystem by receiving either an FSP or an IPA. The list of granted FSPs within these sectors includes Barrenjoey, Deutsche Bank AG, Fidelis OPCO, Laser Digital, and Paxos Issuance MENA. Prominent list of names that received an IPA includes Oyster Reinsurance Brokers, and SMBC Bank International, among others.

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

It covers dedicated regulations that recognise and protect good faith reporting of ‘protected disclosures’ and availability of internal and external channels for reporting reasonably suspected breaches of ADGM legislation or financial crime.

There is also protection for anonymous reporting in good faith of reasonably suspected misconduct, and non-retaliation protections integrated into existing employment regulations to guard employees of all ADGM entities against retaliation for speaking up.

Good governance requirements are included in the new rules too, to support whistleblowing for all ADGM entities, with written policies and procedures for firms licenced by the FSRA, designated non-financial businesses or professions (DNFBPs) and large ADGM entities.

The statement said: “The endeavours of ADGM market participants to operate in line with the highest global standards of business practice are also reflected strongly within the framework. Entities within the centre will implement proportionate arrangements to support effective whistleblowing by 31st May 2025. These arrangements need to be captured in writing by companies that are over a certain size or that carry additional financial crime risks.

“The whistleblowing framework provides a solid foundation that ADGM continuously builds upon and strengthen, ensuring the highest international business standards are upheld.”