ADGM, 2 Islands, 1 District
Al Reem Island Expansion
The 24th of April is a significant milestone for Abu Dhabi, and for ADGM. The expansion of the International Financial District to include both Al Maryah and Al Reem islands makes it one of the largest financial districts in the world, with a total area of 1,438 hectares.
ADGM is the region’s fastest growing IFC, and this expansion follows increased demand from both international and regional companies choosing Abu Dhabi as their preferred location to work and live.
Businesses in the financial district will benefit from being in the financial freezone’s jurisdiction, its English common law, the opportunity to attract talent, greater access to investment and business opportunities by being part of ADGM’s vibrant community.
ADGM will continue to support and enhance its services to members of the community, and we look forward to celebrating the diverse businesses, institutions, amenities, and lifestyle facilities that the two islands offer.
To all the businesses, retail outlets, institutions, and residents on Al Reem Island, welcome to ADGM.
Frequently Asked Questions
We know you will have questions about the expansion, about ADGM, and what this means as a business, as a resident, or as a member of the community, so we have prepared some initial FAQs to provide more information, and we will be sharing further details at a later date.
1. What is ADGM?
ADGM is an international financial centre, in the form of a Financial Free Zone established in the Emirate of Abu Dhabi, able to develop its own laws and regulations based on the application of English common law: there are some exceptions, however, where the laws of the UAE are applicable in ADGM, most notably the criminal law. You can find out more about ADGM by visiting the website www.adgm.com.
2. What does ADGM jurisdiction expansion mean?
Al Reem Island was governed by UAE federal and Abu Dhabi local laws. From the 24 April 2023 when Cabinet Resolution No. (41) of 2023 was issued expanding the jurisdiction of ADGM to Al Reem Island, ADGM’s legal and regulatory frameworks have been in force for Al Reem Island. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to ensure that there is a smooth transition to allow all establishments and real estate on Al Reem Island to meet the relevant requirements of ADGM’s legal and regulatory framework during or by the end of the transitional arrangements. It should be noted that federal criminal law will continue to apply to Al Reem Island.
3. When will this be effective?
ADGM’s legal framework became effective for Al Reem Island on 24 April 2023 when Cabinet Resolution No. (41) of 2023 was issued. ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalise the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in the financial services industry. The relevant ADGM authority will contact the Al Reem island community with more details on the transition process in due course.
4. How does it impact you?
Although the change to ADGM’s geographical jurisdiction took effect from 24 April 2023, in the interim, establishments and real estate on Al Reem Island can continue to operate and carry on business as before. However, ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalise the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in financial services.
During the transitional arrangements, establishments operating in Al Reem Island should consider whether they wish to apply for the appropriate licence, registration and authorisation to remain on Al Reem Island within ADGM jurisdiction or make arrangements to relocate outside of ADGM to continue being governed by the UAE federal and Abu Dhabi local legal and regulatory frameworks that they were subject to prior to the expansion.
5. What will happen to your applications that are currently being processed by a federal or a local authority?
Processing of all applications will continue without change until further notice.
6. You have just renewed your residential tenancy with your landlord and registered Tawtheeq in Al Reem Island. What happens to you?
Processing and registration of all residential tenancies including the processing of other services related to real estate will continue without change and with the relevant government authority until further notice.
7. Your current DED license is expiring soon. What are your options?
Renew it with Department of Economic Development Abu Dhabi until further notice.
8. What happens to your current employment visa?
Your visa will remain valid as normal until further notice.
9. You are looking to obtain building permits, infrastructure services, planning services, or any other municipality related services?
Reach out to Department of Municipality Abu Dhabi for all such services until further notice.
10. You are already an ADGM establishment based on Al Maryah Island?
It is business as usual for all existing ADGM establishments.
11. You are an ADGM establishment and would like to move your office from Al Maryah Island to Al Reem Island?
ADGM is currently working with key government and Al Reem Island stakeholders to finalise the necessary transitional arrangements, (including for the entities that may be wishing to establish themselves on Al Reem Island in the future) which will be communicated to our community. During this period, ADGM establishments with offices in Al Maryah Island will carry on business as before.
12. You are currently licensed by the DED and have an office in Al Reem Island. What happens next?
Please refer to question no 4. Our teams will communicate the transitional arrangements, timelines and the process with you in due course.
13. What kind of benefits can Al Reem Island businesses expect from ADGM's jurisdiction further to the expansion?
ADGM fosters an effective and collaborative ecosystem where businesses and startups come from various sectors such as finance, investments, new age finance, emerging tech, legal, insolvency, audit, consultancy and many more. ADGM's common law legal framework facilitates investments in these businesses. For example, ADGM's commercial legislation provides a range of internationally recognised legal structures and shareholding options including 100% foreign ownership. ADGM is also home to Abu Dhabi’s tech accelerator, Hub71.
14. Currently ADGM offers a dual licensing arrangement where ADGM registered company may register a branch of ADGM legal entity with the DED and have one office in ADGM and maintain two licenses. Will this arrangement remain in place following expansion of ADGM’s jurisdiction to Al Reem island?
Pursuant to ADGM Law (Law No. 4 of 2013, as amended), all new and existing ADGM registered legal entities are able to benefit from the dual licensing arrangement by applying to Abu Dhabi Department of Economic Development for an onshore branch license without having to have a place of residence outside ADGM.
Contact Us
Should you require further information beyond what is provided in our FAQ section, please do not hesitate to contact us via the form below.
News About Al Reem Expansion
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