Bigger jurisdiction, greater opportunities: ADGM completes integration of Al Reem Island into its jurisdiction

2025-03-14 03:32:00

Abstract: ADGM expanded to Al Reem Island, growing tenfold & attracting 1100+ new entities. Fee cuts & streamlined real estate boost business & investment.

Abu Dhabi Global Market (ADGM) has continuously solidified its position as a global financial center in recent years. The successful inclusion of Al Reem Island under ADGM's jurisdiction marks another significant milestone in Abu Dhabi's vision to become the preferred destination for regional and global financial institutions, attracting more international attention and investment.

This expansion was carried out in accordance with UAE Cabinet Resolution No. 41 of 2023, which extended ADGM's jurisdiction to include the adjacent Al Reem Island, increasing its area tenfold. Currently, ADGM's total area has reached approximately 14.3 million square meters, making it one of the largest international financial centers in the world, further enhancing its global significance.

The expansion of ADGM aims to further strengthen Abu Dhabi's financial ecosystem, providing a more dynamic and competitive platform for businesses and investors. Since the expansion was announced in April 2023, more than 600 new businesses have been established on Al Reem Island, and more than 500 Al Reem Island companies have migrated to ADGM licenses, totaling 1,100 new entities operating under ADGM's jurisdiction, further solidifying ADGM's role as a premier business hub.

ADGM has earned global recognition through its sound regulatory framework, transparency, and legal certainty, as well as the direct application of English common law, creating a friendly environment for investors. With easily understood legal principles and flexible policies, businesses can operate with confidence within ADGM. Aligning with global standards, ADGM has successfully attracted global enterprises and startups, thereby promoting the development of a vibrant business center, contributing to Abu Dhabi's economic growth.

To ensure a smooth transition, ADGM has taken several measures to support businesses. ADGM has also opened an information center in Shams Boutik Mall, dedicated to providing comprehensive support to the Al Reem Island business community in licensing, documentation, and compliance matters. Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority, stated, "To facilitate a seamless transition, ADGM and its Registration Authority have proactively launched various initiatives, placing our business community at the heart of every decision."

In September 2024, as part of ADGM's efforts to support the transition of businesses, ADGM signed a Memorandum of Understanding (MoU) with the Department of Municipalities and Transport (DMT) to transfer real estate services on Al Reem Island to ADGM. ADGM also revised its Real Estate Regulations, introduced new off-plan development rules, and launched AccessRP - a unified digital platform to streamline real estate transactions. These initiatives are designed to promote growth, innovation, and investment in ADGM's real estate sector.

In January 2025, ADGM launched revised fee regulations, significantly reducing the cost for non-financial and retail businesses within its jurisdiction to obtain and renew ADGM commercial licenses. With the completion of the integration of Al Reem Island, ADGM will play a key role in Abu Dhabi's economic diversification process, driving growth in commerce, real estate, and tourism. As one of the world's largest financial districts, it will continue to shape the future of global finance, attracting further international collaboration and development.