Abu Dhabi Global Market (ADGM) today announced fee reductions for commercial licences, impacting law firms in the international financial centre of the UAE’s capital.
From January 1, 2025, law firms registered in the ADGM will pay 37.5% less to renew their licence each year, from US$8,000 to US$5,000.
It is unclear whether the reduced rate will apply for renewals before December 31, 2024 meaning law firms may have to wait another year to gain the benefit of reduced fees.
Meanwhile, law firms looking to set up a practice in the ADGM will see licence fees slashed by half, from US$10,000 to US$5,000.
The above fee reductions apply to “non-financial businesses” across ADGM’s jurisdiction, which includes both Al Maryah and Al Reem Island. ADGM expanded to Al Reem Island last year, with businesses transitioning to its jurisdiction by December 31, 2024.
ADGM further announced fee reductions for retail businesses, and increases for those in the financial, tech, and fintech categories. Fees for Special Purpose Vehicles (SPVs) remain the same.
The full schedule for renewals and registrations will be published in December, according to a statement.
The announcement follow a series of consultations ADGM conducted last year with Al Reem Island businesses to gather insights related to its newly expanded jurisdiction. It aims to enhance the business ecosystem, making it more attractive and accessible.
Commenting on the developments, Ranjith Mohan, a legal consultant, told Law Middle East: “This is a commendable and strategic decision by ADGM. The substantial reductions in licensing fees for both non-financial and retail businesses will undoubtedly enhance the attractiveness and accessibility of the jurisdiction for enterprises of all sizes. By lowering these financial barriers, ADGM promotes innovation and growth, contributing to a dynamic business ecosystem.”
“By implementing these changes in conjunction with the conclusion of the transition period, ADGM is establishing itself as a progressive hub that supports both startups and established companies. This initiative not only boosts competitiveness but also demonstrates ADGM’s dedication to fostering a thriving economic environment,” he said, adding: “I am eager to see how these changes will positively impact the business community in the years ahead.”
