The UAE government has issued a cabinet resolution to expand the jurisdiction of international financial centre Abu Dhabi Global Market (ADGM), as part of its economic vision.
The resolution expands ADGM’s jurisdiction as a financial free zone to Al Reem Island, adjacent to its current home of Al Maryah Island, following increased demand from companies choosing Abu Dhabi as a preferred destination to expand and grow their businesses globally.
ADGM said in a statement: “By being based within the financial free zone’s jurisdiction, a qualifying business entity can benefit from the preferential corporate tax rate of 0% on their qualifying income.”
The financial centre also said 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 Al Reem island community with the transition process in due course.”
The ADGM financial district will now be 10 times greater than its current footprint.
Attraction
Ahmed Jasim Al Zaabi, chairman of Abu Dhabi department of economic development and ADGM, said: “In line with the wise leadership vision to build our diversified future economy and the financial industry at its core, global financial institutions, family offices, entrepreneurs and leading fintech talent continue to choose ADGM as the location from which they access a deep pool of capital and a wide range of investment opportunities that are available in Abu Dhabi.
“Al Maryah Island is a thriving international financial centre, with occupancy already over 95% and a strong pipeline of international companies wanting to expand or establish their footprint here.
“We have prioritised our ongoing efforts to continue to grow towards accommodating this ever-increasing demand. Al Maryah’s larger next-door neighbour, Al Reem Island, also presents an abundance of opportunities with access to a wide range of office spaces and world-class residential, educational, medical and lifestyle facilities.
“Together, as ADGM, Al Maryah and Al Reem Islands will be one of the most attractive places to live and work across financial centres worldwide.”
“This expansion provides us with a unique opportunity for Abu Dhabi to reinforce its position as a world-leading international financial centre and a global destination of choice. Combining our common law jurisdiction and pioneering regulatory framework across these two islands will unlock even greater economic opportunities. We look forward to engaging with all our strategic partners and stakeholders on how we can work together to realise this great ambition.”
Growth
In eight years, ADGM has grown to support 1,400 operating entities, 5,500 business licences and a workforce of 11,000 people in ADGM Square.
Last year, ADGM achieved a record increase of 56% in assets under management and a 30% increase in active licences.
