Abu Dhabi Global Market Sweetens the Deal for Businesses Shifting Gears

The Abu Dhabi Global Market (ADGM) has unveiled a program offering a financial sweetener to established businesses on Al Reem Island that are transitioning their operations under ADGM's jurisdiction. This strategic move aims to ease the transfer process for businesses in the non-financial and retail sectors, currently licensed under the Abu Dhabi Department of Economic Development (ADDED).

Recognizing the importance of minimizing disruption during the shift, ADGM will waive commercial licensing fees for qualifying businesses on Al Reem Island. This exemption will be valid until October 31, 2024, providing a buffer period free from additional financial burdens.

Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, emphasized the initiative's role in ensuring a smooth transition. "This will help mitigate any potential disruptions that businesses might encounter when moving from an ADDED license to an ADGM license, enabling them to operate within ADGM's jurisdiction swiftly," Al Mazrouei explained in a press release.

The incentive program stems from ADGM's commitment to fostering a thriving business environment that attracts and retains diverse entities. By removing the hurdle of licensing fees, ADGM hopes to streamline the process for businesses looking to leverage the benefits of operating under its legal and regulatory framework.

Businesses transitioning to ADGM will gain access to a world-class legal system based on common law principles. This offers a familiar and transparent framework that can be particularly attractive to international investors. Additionally, ADGM provides a competitive tax environment, including a zero corporate tax rate for the first fifty years on qualifying businesses.

The initiative is also expected to contribute to the continued growth of Al Reem Island as a prominent commercial hub. By simplifying the transition process for existing businesses, ADGM strengthens the island's appeal as a destination for new ventures as well. This could lead to a more dynamic and diversified business landscape on Al Reem Island, fostering economic activity and creating new job opportunities.

While the full details of the incentive program are yet to be revealed, ADGM has assured that it will provide all the necessary support to businesses navigating the transition process. This could include workshops, dedicated helplines, and assistance with completing the required paperwork.

The ADGM's incentive program is a strategic move that demonstrates its commitment to attracting and retaining businesses within its jurisdiction. By offering a seamless transition process and leveraging its competitive advantages, ADGM positions itself as a destination of choice for businesses seeking a dynamic and growth-oriented environment.

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