ADGM Expands to Al Reem Island

Abu Dhabi Global Market (ADGM) has made a bold move in expanding its jurisdiction to Al Reem Island, creating more space for businesses to flourish in one of the world’s premier financial hubs. This strategic expansion, effective from April 2023, now spans a colossal 14.38 million square meters, covering both Al Maryah Island and Al Reem Island. For businesses looking to capitalize on this development, ADGM offers unmatched opportunities to grow in the Middle East’s booming financial landscape.

For those currently operating or planning to set up in this dynamic market, ADGM’s expansion presents exciting opportunities and regulatory shifts. With ECAG INCORP’s expertise, your business can seamlessly navigate this new era in Abu Dhabi’s financial sector.

ADGM: Shaping the Future of Global Finance

ADGM has long been at the heart of Abu Dhabi’s success as a global financial hub. With its use of English common law, a favorable regulatory environment, and world-class infrastructure, it offers a secure and business-friendly environment that attracts global financial institutions, tech firms, and innovative startups.

By the end of March 2024, ADGM witnessed a 30% increase in operational entities, reaching 1,950 registered companies, including nearly 300 financial services firms. The expansion to Al Reem Island amplifies ADGM’s appeal, providing more space for businesses to leverage Abu Dhabi’s dynamic, tax-free economy and world-class infrastructure.

Expansion to Al Reem Island: More Opportunities for Growth

Al Reem Island, already a thriving residential and commercial district, officially came under ADGM’s jurisdiction in April 2023. Located next to Al Maryah Island and downtown Abu Dhabi, Al Reem Island is a strategic hub featuring premium commercial spaces, modern residential buildings, schools, and leisure activities. With this expansion, businesses gain new opportunities to benefit from ADGM’s global reputation and streamlined business processes.

Mandatory Migration: ADGM Trade License by December 2024

As part of this transition, businesses currently operating on Al Reem Island must migrate to an ADGM trade license before December 31, 2024, or relocate outside the jurisdiction. Companies that make the switch early can benefit from fee exemptions and ensure their operations remain compliant.

Key Timelines for Transition

If your business is based on Al Reem Island or plans to set up there, pay close attention to these crucial deadlines:

1.Current License Validity: Business licenses under ADDED are valid until December 31, 2024. After this, companies must hold an ADGM trade license to continue operations.

2 Migration Incentive: Fee Incentive Program for continuation to ADGM Extended Until 31 December 2024!
We are excited to bring to your attention the extension of ADGM’s fee incentive program. This is your chance to transition smoothly to an ADGM commercial license and enjoy significant benefits.

New Deadline to avail the fee incentive: 31 December 2024

3.Visa Renewals: Employee visas will remain valid until they expire but must be renewed under ADGM’s jurisdiction afterward.

4.Real Estate Services: Tenancy renewals and other real estate services will continue with current authorities until further notice.
Why Early Migration Makes Sense

There are several advantages to migrating your business early to ADGM:

1.Commercial License Fee Exemption: Businesses transitioning before October 2024 may benefit from reduced costs.

2.Operational Continuity: Early migration ensures uninterrupted operations, helping you avoid last-minute hurdles and penalties.

3.Access to ADGM’s World-Class Ecosystem: Businesses that move early can take full advantage of ADGM’s regulatory support, cutting-edge infrastructure, and global business network.

4.Migration Process: A Step-by-Step Guide with ECAG INCORP

Migrating to an ADGM license can be efficiently completed online via the ADGM website. ECAG INCORP is here to ensure a smooth transition for your business. Here’s how the process works:

1. Choose the Right Legal Structure

Selecting the correct legal entity structure is crucial. ECAG INCORP will help you choose the one that best aligns with ADGM’s licensing requirements.

2. Evaluate Business Activities

Ensure that your business activities align with ADGM’s permitted activities. ECAG INCORP’s team will provide expert guidance to confirm compliance.

3. Prepare Required Documents

Essential documents, including No Objection Certificates (NOCs), Articles of Association (AoA), and lease agreements, must be gathered. ECAG INCORP will help you compile these smoothly.

4. Submit Your Application

ECAG INCORP will assist you in creating an account on the ADGM portal and completing your migration application seamlessly.

Post-Migration: Ensure Full Compliance with ECAG INCORP

After completing your migration, there are a few additional steps to ensure your business remains fully compliant:

1.Bank Notifications: Inform your bank about your new jurisdiction and provide updated trade license details.

2.Update Legal Documents: Modify your company’s official documents, such as contracts and marketing materials, to reflect your new ADGM status.

3.Stakeholder Communication: Notify clients, partners, and authorities about your migration to avoid confusion.

4.Amend Legal Documents: Make necessary changes to your company’s legal documents, consulting with legal experts when needed.

After December 2024: What Happens Next?

Businesses that have not migrated to an ADGM license by December 31, 2024, will be required to either relocate outside ADGM jurisdiction or face penalties and fines. Upon a successful transition, companies will receive a new ADGM license number and gain access to ADGM’s vast resources.

ECAG INCORP: Your Partner in Seamless Business Migration

At ECAG INCORP, we have a proven track record of helping businesses set up and thrive in the UAE’s most competitive markets. With over a decade of experience in business setup consultations across the UAE, Bahrain, India, and the UK, ECAG INCORP is perfectly positioned to guide your company through every step of the migration process.

Why Choose ECAG INCORP?

1.Tailored Business Solutions: We offer customized services designed to meet your unique business needs.
2.Expert Guidance: Our experienced team provides proactive, practical insights to help you navigate the migration process smoothly.
3.Ongoing Support: From initial setup to long-term operational advice, we offer continuous support to ensure your business thrives under ADGM’s jurisdiction.

Post-December 2024: What to Expect from ADGM

By migrating your business to ADGM, you position your company in one of the world’s most influential financial hubs. After the December 31, 2024 deadline, businesses operating on Al Reem Island will need to either hold an ADGM trade license or face relocation and penalties. By acting early, you secure a competitive advantage, access to global markets, and the opportunity to operate in a business-friendly, world-class environment.

Conclusion: Secure Your Future with ECAG INCORP

ADGM’s expansion to Al Reem Island opens new doors for businesses looking to grow in Abu Dhabi’s thriving financial sector. With the expert assistance of ECAG INCORP, your business can easily migrate to an ADGM trade license, ensuring compliance and unlocking access to a robust, innovation-driven ecosystem.

Contact ECAG INCORP today to learn how we can assist you with your business migration to ADGM on Al Reem Island. Let us help you make the most of this exciting new chapter in Abu Dhabi’s business evolution!

Contact ECAG Incorp
Mr. Ragesh Mattummal: Partner
Mobile: +971 50 357 8031
Email: rag@emiratesca.com