The Next Steps: ADGM Expansion to Al Reem Island

Abu Dhabi Global Market (ADGM) has announced the expansion of the Freezone area to cover Al Reem Island in Abu Dhabi. All existing businesses in Al Reem Island are required to transfer to an ADGM License to remain on Al Reem before the transfer deadline on 31 December 2024.

Assess Transfer Eligibility

It is first important to assess the eligibility of transferring your business from an Abu Dhabi Department of Economic Development (ADDED) mainland licence to an ADGM license – based on your activities, staff and clients.

A quick call or meeting with our dedicated ADGM team will help you determine your eligibility and requirements to move forward with the transfer.

While most businesses can anticipate a smooth transition from an ADDED Mainland licence to an ADGM licence, some businesses should seek further advice from our ADGM consultants to better understand their position.

This includes:

1. Businesses that require any external approvals. e.g. - companies in the Oil & Gas Industry that require ADNOC and CICPA approvals
2. Businesses engaged in regulated activities e.g. - Central Bank
3. Businesses that conduct business in the mainland and therefore may be required to maintain a Mainland licence e.g. – Trading and Import, Government Contracts

Successful transfer of licence

Once we have assessed that you can transfer your licence smoothly from ADDED mainland to ADGM and your business activities align, then you can remain on Al Reem Island.

What does this mean?

• You will now hold an ADGM business licence, and all commercial documents will need to be updated to reflect the changes.
• You can remain in your existing commercial space or other office locations on Al Reem Island.
• You will be required to update employee labour documents. Employment contracts from the Ministry of Human Resources and Emiratisation (MoHRE) related to mainland UAE Labour Laws will need to be adjusted to reflect ADGM employment regulations.

Why would I want to transfer to ADGM?

• English Common Law jurisdiction
• ADGM has become globally recognised not just as a financial centre but in other industries for having progressive and robust regulations
• ADGM is a vibrant ecosystem for companies to network and collaborate
• 0% Corporate Tax rate (if applicable)

Businesses who transfer their licenses to ADGM before 31st October 2024, can benefit from reduced ADGM registration fees.

Unsuccessful transfer of licence

If you are unable or cannot transfer your mainland ADDED license due to your business activities or you do not wish to transfer to ADGM, you will be required to relocate from Al Reem Island.

What does this mean?

• You will be required to find another office space in a Mainland Abu Dhabi jurisdiction and take up a new tenancy contract.
• Change any associated company and employee documents to reflect the change in office address.

How can PRO Partner Group assist?

PRO Partner Group and Sovereign are a regulated Corporate Service Provider (CSP) in ADGM as well as holding the relevant Mainland ADDED support service licences on Al Reem Island, and with dedicated PRO and Operations teams in both jurisdictions we are experiencing the changes with ADGM expansion into Al Reem first hand.

We can assist with the initial advice and transfer process including updating licences, visas, labour and immigration requirements and closely working with our HR team to get your employee labour contracts updated to reflect ADGM labour regulations.

Contact us at [email protected] or call T: +971 (0)2 448 5120 or WhatsApp M: +971 (0)52 926 8037 and we would be delighted to assist.

Visit our ADGM page here