Overview
Abu Dhabi Global Market (ADGM) is an international financial centre located on Al Maryah Island in Abu Dhabi. Established in 2013 by federal decree, ADGM operates under its own civil and commercial legal framework derived from English common law. The zone has rapidly grown to host over 1,800 entities, positioning itself as a direct competitor to DIFC and a gateway to Abu Dhabi’s sovereign capital ecosystem.
Key Sectors
ADGM focuses on banking, asset management, private equity, venture capital, insurance, fintech, digital assets, and professional services. The zone has become a notable hub for virtual asset regulation after introducing one of the world’s first comprehensive digital asset regulatory frameworks. Its RegLab programme supports fintech innovation through a sandbox environment.
Setup Process
Company formation in ADGM involves registering with the ADGM Registration Authority and, for regulated activities, obtaining a Financial Services Permission from the Financial Services Regulatory Authority (FSRA). Applicants choose an entity structure (Private Company Limited by Shares, branch, partnership, or Special Purpose Vehicle), submit incorporation documents, and secure a registered office address. Registration typically completes within two to three weeks for non-regulated entities.
Costs and Licensing
ADGM’s commercial licence fees start at approximately USD 2,000 per year for non-regulated activities, making it accessible for smaller firms. Regulated financial services licences involve application fees starting at USD 10,000, plus ongoing regulatory capital requirements. The Tech Startup Licence offers reduced fees for early-stage companies. Office solutions range from flexi-desks to dedicated suites on Al Maryah Island.
Benefits
ADGM provides zero percent corporate and personal income tax, 100 percent foreign ownership, full profit repatriation, and a legal system governed by ADGM Courts applying English common law. The zone offers direct access to Abu Dhabi’s institutional investor base, including sovereign wealth funds and government-related entities.
Ownership Rules
All entities registered in ADGM may be fully owned by foreign nationals. No local partner or sponsor is required. Shareholders maintain complete control over governance and profit allocation.
Tax Regime
ADGM entities benefit from zero percent tax on corporate income and personal income. The UAE corporate tax framework preserves the tax-free status of qualifying free zone entities. Standard UAE VAT at five percent applies where relevant under federal tax law.
Infrastructure
ADGM is situated on Al Maryah Island, Abu Dhabi’s central business district. The precinct includes the Abu Dhabi Global Market Square complex with commercial towers, retail, hospitality, and residential facilities. The location provides proximity to Abu Dhabi’s government district and connects to the city’s arterial road network.
Ideal Investor Profile
ADGM suits financial services firms, fintech companies, digital asset businesses, venture capital funds, family offices, and professional advisory firms seeking a well-regulated Abu Dhabi base with access to government-linked capital and a progressive regulatory environment for emerging asset classes.