16 Nov Abu Dhabi Global Markets (ADGM)
Abu Dhabi Global Market (ADGM) | Get Your ADGM License
Abu Dhabi Global Markets (ADGM) is considered one of the premier international financial centres in the region. It is based on Al Maryah Island in the capital city of the United Arab Emirates.
With its unique framework of English Common Law and independent legal authority, a solid commitment to transparency, and ease of business, ADGM provides outstanding opportunities for any business to thrive. The free zone has three key autonomous segments – the Financial Services Regulatory Authority (FSRA), the ADGM Registration Authority, and ADGM Courts.
Background and Establishment
Established in 2013, the Abu Dhabi Global Market (ADGM) is a pioneering international financial center located in the capital city of the United Arab Emirates. The creation of ADGM was a strategic move by the UAE government to position Abu Dhabi as a globally competitive and well-regulated financial hub, attracting businesses and investments from around the world.
ADGM’s vision is to become a leading international financial center, fostering an environment that supports sustainable economic growth and diversification. The free zone operates with a robust legal framework and regulatory environment based on the principles of English common law, which provides a familiar and transparent legal system for businesses and investors.
ADGM Financial Marketplace: A Place of Business Opportunities
ADGM aims to be a financial marketplace aligned with global standards and best practices of financial centres such as Singapore, New York, London, and Hong Kong. It seeks to position itself as a lucrative location for investment at the crossroads of Asia, Africa, Europe, and the GCC. The free zone is home to well-known financial institutions such as Unicredit, BNP Paribas, BCP Bank Mauritius, and Citibank. International investment firms such as Softbank and McKinley Capital also have a presence.
The free zone targets new and established corporations across various services covering wealth management, banking , asset management , insurance, crypto assets, and capital market activities. In addition, a unique dual licensing initiative permits ADGM-registered ventures to apply for a license issued by the Abu Dhabi Department of Economic Development (ADDED) , allowing you to expand your business scope.
Abu Dhabi Global Markets (ADGM) offers innovative new services, such as mediation in the metaverse , allowing users to engage in mediation services using Web 3.0 technology in a virtual environment. A virtual space modeled on the ADGM Arbitration Centre, with video of participants integrated into the virtual surroundings, is just one of many innovations the free zone has introduced.
Why Get an Abu Dhabi Global Markets (ADGM) License?
- 0% corporate income tax rate for a period of fifty years.
- No currency restrictions.
- State-of-the-art infrastructure and offices located in the capital of the UAE.
- No foreign proprietorship restrictions.
- World-class independent courts using English Common Law and an independent financial services regulator.
- No restrictions on the repatriation of profits.
- The ADGM Companies and Commercial Licensing Regulations are derived from the UK Companies Act (2006), which is widely recognized in international business.
- ADGM (Abu Dhabi Global Markets) companies can apply for a Tax Residency Certificate from the Ministry of Finance to benefit from the UAE’s vast double tax treaty network.
- Awarded ‘Best International Financial Centre (EMEA)’ by London-based Capital Finance International (CFI.co) for two consecutive years.
- The free zone was named ‘Financial Centre of the Year (MENA)’ for three consecutive years by Global Investor magazine.
- Voted as “FinTech Regulator of the Year (MENA)” by Seamless Middle East.
Regulatory and Legal Framework:
ADGM has established a robust regulatory and legal framework, ensuring a high level of transparency, compliance, and investor protection. The financial free zone is governed by independent regulatory bodies, including the Registration Authority, Financial Services Regulatory Authority, and ADGM Court, which follows the international best practice.
The adoption of English common law as the basis for ADGM’s legal system, in line with UAE Federal Decree, provides a familiar and well-established legal framework for businesses and investors. This approach has been complemented by a comprehensive set of regulations and rules designed to promote fair and ethical business practices, mitigate risks, and protect the interests of all stakeholders.
ADGM’s regulatory bodies have implemented rigorous measures to combat financial crime, including anti-money laundering and counter-terrorism financing regulations, as well as stringent due diligence requirements for companies operating within the free zone.
Infrastructure and Facilities
State-of-the-art infrastructure
ADGM boasts state-of-the-art infrastructure and world-class facilities, including the iconic ADGM Square, designed to cater to the needs of businesses operating within the financial free zone. The business development features modern office spaces, advanced technology infrastructure, and a range of amenities, including retail outlets, restaurants, and residential accommodations.
Ease of conducting business and the support services
Companies operating within ADGM benefit from a business-friendly environment, with access to a range of support services and resources. These include facilitating the ADGM company formation and licensing of businesses, providing assistance with regulatory compliance, and offering professional development and networking opportunities.
Accessibility of ADGM to other major cities and markets
ADGM’s strategic location and connectivity to major cities and markets globally, including South Asia, further enhance its appeal as a hub for businesses. The free zone is easily accessible via air, sea, and land transportation networks, facilitating seamless travel and logistics operations.
ADGM License Types
The Abu Dhabi Global Markets Free Zone has become a destination for all types of businesses in the financial sector. In addition, it has attracted companies from across the region and beyond by offering innovative solutions for all their needs.
Features Category 1Category 2Category 3ACategory 3BCategory 3CCategory 4Category 5DescriptionAccepting deposits. Managing a profit-sharing account. Principal investor. Providing credit. Dealing with investments as principal. Dealing in investments as an agent. Acting as trustee of a fund. Managing a collective investment fund. Arranging credit in investments. Advising on financial products. Islamic financial institution. Minimum Capital Required$10,000,000$2,000,000$500,000$4,000,000$500,000$10,000$10,000,000FSRA Authorisation Fee$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$5,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity FSRA Annual Supervision Fee$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity$5,000 + $5,000 per additional regulated activity$15,000 + $5,000 per additional regulated activity ADGM Registration Fee$15,000$15,000$15,000$15,000$15,000$15,000$15,000
ADGM is an excellent location for a broad range of business services, family enterprises, and corporate headquarters. For non-financial business activities allowed within the free zone, please click on this link and search by keyword. In addition, you can find the latest complete list of fees on the ADGM schedule of fees page. Start a Financial Company via ADGM
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Procedure to Start a Financial Company via ADGM
- Complete an application form and present it to the ADGM Registry Authority.
- Present a Regulatory Business Plan (RBP). The FSRA will use it to determine the applicant’s fitness to conduct regulated activities.
- Review of all documentation by the ADGM Registry Authority and FSRA.
- Issuance of approval by the Regulator.
- Issuance of documentation as a registered entity within ADGM.
Special Purpose Vehicle (SPV)
ADGM offers a top-notch SPV regime to separate financial and legal risk by ring-fencing assets and liabilities. SPVs can ensure that only those assets related to a business deal or project are exposed to its liabilities. Please speak to our team for more details on ADGM SPVs.
Future Developments and Initiatives
Ongoing and planned developments within ADGM
ADGM continues to evolve and expand its offerings to maintain its competitive edge as a premier international financial center. Ongoing developments within the free zone include the construction of additional office spaces, residential units, and retail facilities to accommodate the growing demand from businesses and investors.
Upcoming initiatives, partnerships, or events
ADGM has also forged strategic partnerships and collaborations with various international organizations and institutions, aimed at promoting innovation, enhancing regulatory frameworks, and facilitating knowledge exchange. These initiatives contribute to the continuous improvement and competitiveness of the financial free zone.
Furthermore, ADGM actively participates in hosting and organizing various events, such as the Abu Dhabi Finance Week, bringing together industry leaders, policymakers, and experts from around the world. These platforms provide valuable opportunities for networking, sharing insights, and exploring potential collaborations.
Potential for growth and expansion of ADGM
As the UAE continues to diversify its economy and position itself as a global hub for innovation and business, ADGM’s role as a gateway to the Middle East and global markets is poised to grow further. The ADGM Foundation plays a pivotal role in supporting the development of the financial free zone and promoting sustainable finance initiatives.
ADGM offers a wide range of business activities, catering to both financial and non-financial businesses, including the establishment of legal entities and the incorporation of foreign companies. With its world-class infrastructure, robust regulatory framework, and strategic initiatives, ADGM continues to attract businesses seeking growth and expansion opportunities.
Obtaining an Emirates ID is a crucial step for individuals and businesses operating within ADGM, facilitating access to various services and ensuring compliance with local regulations.
Professional Services to Launch Your Venture in Abu Dhabi Global Markets
Our team has facilitated many individuals and corporate entities to set up their businesses within ADGM. So let us be your one-stop solution for ADGM company incorporation services.
If you seek expert advice, don’t hesitate to contact us for professional assistance.
Also, don’t forget to see the comparison between Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) & how to establish a UAE Foundation .
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