Al Reem Island Businesses Must Complete Transition to ADGM by December 31st

Time is Running Out: Complete Your Al Reem Island Business Transition to ADGM by December 31st The clock is ticking for businesses operating on Al Reem Island. With the inclusion of the island under the jurisdiction of the Abu Dhabi Global Market (ADGM), all businesses must transition their operations to align with ADGM’s regulatory framework by December 31, 2024.

This shift, driven by UAE Cabinet Resolution No. 41 of 2023, marks a significant milestone in Abu Dhabi's economic evolution, establishing a unified financial district that fosters global standards and innovation.

For businesses, this transition is not just a regulatory requirement but an opportunity to operate within a sophisticated legal and economic framework. However, with the deadline just weeks away, ensuring compliance is critical to avoid operational disruptions and penalties.

Transitioning to ADGM involves significant changes. Businesses currently licensed by the Abu Dhabi Department of Economic Development (ADDED) will need to register with ADGM. This can be done through two pathways: continuation or new registration. The continuation process allows businesses to retain their existing rights, obligations, and contracts, while new registration involves setting up a new legal entity within ADGM. Branches operating under ADDED licenses are required to go through the new registration process.

Employment files are also impacted by the transition. ADGM operates under its own Employment Regulations (2019), which means the Ministry of Human Resources and Emiratisation (MOHRE) files for businesses on Al Reem Island will be closed. Current employment visas will remain valid, but businesses must update these to ADGM-issued work permits. Additionally, employees under investor visas will need to update their job titles to align with ADGM regulations.

For visa-related updates, businesses must amend their establishment cards through the ICP Smart Services platform. Once this is complete, new work permits can be applied for through the AccessADGM portal. It is essential to ensure that all employees have valid contracts compliant with ADGM’s employment standards, as MOHRE employment contracts will no longer be applicable within ADGM jurisdiction.

The transition also requires businesses to update their operational details, including shareholding structures, lease agreements, and beneficial ownership information. Documentation must be prepared carefully, as any discrepancies could delay the registration process. Businesses should also align their activities with ADGM’s permitted activity categories to ensure compliance.

To support businesses in this transition, ADGM has introduced incentives, including waived registration fees for non-financial and retail entities until October 31, 2024, and

waived continuation fees for businesses transitioning by December 31, 2024. These incentives aim to ease the financial burden and encourage compliance before the deadline.

The transition is a complex process, but it also presents an opportunity to strengthen operations under a globally recognized regulatory framework. ADGM offers a streamlined legal environment, access to financial services, and a reputation for high standards. Businesses that transition successfully can position themselves to thrive in a competitive and innovative ecosystem.

Time is running out, and businesses must act now to ensure a seamless transition. Delaying could result in fines, operational disruptions, and the inability to continue operations legally on Al Reem Island. Starting the process today is crucial to avoid last-minute complications.

If you need support in navigating this transition, our team is here to help. We specialize in managing the regulatory, legal, and operational complexities of ADGM migration. From preparing documents to handling employment and visa updates, we ensure that your business meets all requirements smoothly and efficiently.

Don't wait until it's too late. Contact us today to begin your transition and secure your business’s future within the ADGM jurisdiction.

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