The Abu Dhabi Global Market (ADGM), the international financial center of the UAE’s capital, has recently completed a significant jurisdictional expansion by integrating Al Reem Island. This strategic move solidifies ADGM’s position as one of the largest international financial centers globally and underscores its commitment to fostering a robust and business-friendly environment.
Expansion Overview
Announced in April 2023, the integration of Al Reem Island into ADGM’s jurisdiction encompasses a combined area of 14.38 million square meters, including both Al Maryah Island and Al Reem Island. This expansion has added approximately 500,000 square meters of new office space, providing ample opportunities for businesses seeking to establish a presence in this rapidly growing financial hub.
This article is part of our pillar article: ADGM’s Expansion to Al Reem Island: A Comprehensive Guide for Businesses
This blog is a part of our General Corporate and Commercial Services.
Growth in Business Entities
Since the announcement, the integration has yielded remarkable results:
-
- New Business Setups: Over 600 new businesses have established operations on Al Reem Island.
-
- License Migrations: More than 500 existing companies on Al Reem Island have transitioned to an ADGM license.
Collectively, this integration has added a total of 1,100 new entities operating under ADGM’s jurisdiction, reflecting the confidence businesses place in ADGM’s governance and regulatory framework.
Strategic Significance
The successful integration of Al Reem Island into ADGM’s jurisdiction is a testament to the trust placed in ADGM as a regulatory authority. It reinforces Abu Dhabi’s economic position as a global business hub and aligns with the emirate’s long-term strategic growth initiatives. This expansion not only enhances ADGM’s capacity to accommodate a growing number of businesses but also contributes to the sustainable economic development of the region.
Collaborative Efforts
During the transition period, ADGM has been proactive in strengthening collaboration across various sectors to support growth and ensure business continuity. The financial center signed fifteen Memorandums of Understanding (MoUs) with key stakeholders, facilitating a seamless integration process and reinforcing its commitment to providing a supportive business environment.
Implications for Legal Entities
The integration of Al Reem Island into ADGM’s jurisdiction has several implications for legal entities operating within this expanded area:
-
- Entities are now subject to ADGM’s regulatory framework, which is known for its robustness and alignment with international standards.
- Businesses previously licensed under different jurisdictions on Al Reem Island are required to transition to an ADGM license, ensuring uniform compliance and governance standards.
- Entities benefit from ADGM’s business-friendly environment, including access to a wide range of financial and professional services, streamlined regulatory processes, and a supportive ecosystem for growth.
The completion of Al Reem Island’s integration into ADGM’s jurisdiction marks a significant milestone in Abu Dhabi’s journey to establish itself as a leading global financial center. This strategic expansion not only enhances the capacity and appeal of ADGM but also reinforces the UAE’s commitment to providing a dynamic and supportive environment for businesses worldwide.
