Located on Al Maryah Island in the center of the capital of the United Arab Emirates, the ADGM (Abu Dhabi Global Market) has quickly set itself up as a premier IFC (International Financial Center). Since becoming fully functional in October 2015, the Free Zone has acted as a catalyst for the substantial growth of the fiscal services sector, leveraging the position of Abu Dhabi as a holder of major global wealth.
ADGM or the Abu Dhabi Global Market is a financial free zone that is designated as Abu Dhabi’s fiscal center. It encompasses Al Maryah Island’s entirety and functions independently with its own set of civil as well as commercial laws.
Although it is deemed a global hub in the realm of financial institutions, like banks, asset managers, and fintech companies – it is also a jurisdiction with a broad base. It welcomes non-fiscal businesses such as professional services, family offices, headquarters for corporate firms, and retail outlets.
The free zone functions independently, i.e., with its own courts and regulator.
Tactically positioned only 15 minutes from the famous Zayed Port and half an hour from the Abu Dhabi international Airport, it bridges the markets of the East and West.
It houses the world’s first complete crypto & asset regulatory framework along with the first fully-digital courtroom.
To ensure that the place operates in accordance to the best international practices, ADGM is governed and managed by three independent authorities;
The Registration Authority manages every aspect for legal entities, including incorporation, registration, as well as licensing. Moreover, it also handles government-related services, including visas & permits for professionals who are working on Al Maryah island.
Note: Navigating the complex government protocols effectively generally requires tailored Government Liaison support for ensuring seamless processing.
The Financial Services Regulatory Authority (FSRA) regulates the firms offering financial services, ensuring a solid and transparent market that is perfectly aligned with global standards. The authoritative body regulates banks, wealth management as well as activities of the capital market.
Note: Firms applying for the FSRA regulation are mandated to craft solid policy frameworks, generally necessitating expert Governance & Compliance Advisory services.
Modeled as per the English judicial system, the ADGM Courts manage all civil and commercial disputes. Moreover, this independent judicial arm also supports the direct enforcement of the English Common Law.
Investors as well as entrepreneurs opt for ADGM specifically for the business-friendly environment in addition to the strategic connectivity. Here are some of the prominent strategic benefits the place offers:
Note: For businesses who are targeting the UAE local market, a comprehensive Market Entry Advisory evaluation can aid in determining whether a dual licensing approach is the right fit or not.
The legal framework of the ADGM offers support for numerous corporate structures specifically tailored to certain business activities. Let us take a look at the different types of business entities in the ADGM:
The LLC is deemed the most common structure for commercial business activities. Functioning as a separate legal entity where the liability of shareholders is restricted to the shares, it needs at least 2 shareholders.
ADGM provides a highly-flexible and cost-effective regime of SPV. Such corporate vehicles are used for the isolation of both fiscal & legal risks using ring-fencing assets and liabilities. These are popular for the holding of intellectual property/real estate.
The LLP Regulations 2015 permit firms offering professional services in order to set themselves up corporate structures where the partners possess limited liability.
Both foreign and companies based in the UAE can register a branch in the ADGM Free Zone in order to expand their physical presence without needing to create a brand new legal entity.
Although the ADGM Free Zone promotes an approach of digital-first, the setup procedure involves the following crucial important steps:
Navigating an International Financial Centre’s regulations needs an in-depth understanding of compliance as well as legal structures. Irrespective of whether you are a multinational corporation seeking Company Formation or a family office in need of Private Client & PRO services, having guidance from seasoned professionals ensures a seamless entry into the leading jurisdiction of Abu Dhabi.
Xpert Advisory offers comprehensive support for business entities establishing their presence in the ADGM Free Zone. Reach out to us today for a free consultation to discuss your ADGM requirements.
The main difference between the ADGM and other UAE Free Zones is the legal system. ADGM operates as per the English Common Law, whereas the majority of other UAE Free Zones operate as per the UAE Civil Law.
Yes, as per the Dual Licensing Regime. This allows entities in the ADGM to conduct onshore business activities without the need to rent a separate office on the mainland.
Although it is a financial center, ADGM welcomes non-fiscal activities, such as retail, hospitality, professional services, family businesses, as well as corporate headquarters.
