Abu Dhabi has expanded the jurisdiction of Abu Dhabi Global Market (ADGM) through UAE Cabinet Resolution No 41 (for 2023), as part of its plan to diversify its economy.
The resolution aims to enhance ADGM’s financial sector and is in line with the Growth Strategy 2023-2027.
The resolution adds Al Reem Island to ADGM, increasing its geographic area to nearly 1,438 hectares, which is ten times larger than its current footprint.
The expansion is a response to a growing demand from international companies looking to expand their businesses in the UAE capital city. Businesses based within ADGM’s jurisdiction can benefit from the 0% corporate tax rate on their qualifying income.
ADGM’s chairman, Ahmed Jasim Al Zaabi, said that global financial institutions, family offices, entrepreneurs, and fintech talent continue to choose ADGM as the preferred location to access investment opportunities available in Abu Dhabi.
According to Al Zaabi, Al Maryah Island is a significant factor in the success of ADGM as a thriving international financial center with high occupancy rates and increasing demand from international companies to establish their presence.
The recent expansion of ADGM’s jurisdiction to include Al Reem Island offers even more opportunities with access to office spaces, residential areas, educational institutions, medical facilities, and lifestyle amenities, making it one of the most attractive places to live and work globally.
The combination of the two islands’ common law jurisdiction and pioneering regulatory framework will create even greater economic opportunities and strengthen Abu Dhabi’s position as a world-leading international financial center.
ADGM plans to collaborate with strategic partners and stakeholders to realize this vision.
It is worth noting that the regulatory body has experienced remarkable growth over the past eight years, now consisting of 1,400 operational entities, 5,500 business licenses, and a workforce of 11,000 people situated in ADGM Square.
In 2022, it achieved an impressive 56% increase in assets under management (AUM) and a 30% increase in active licenses.
Abu Dhabi is known as the “Falcon Economy” in the region, with the largest sovereign wealth funds possessing trillions of dollars in AUM and an extensive network of venture capital and family offices.
ADGM and its authorities are currently working with the government and other local authorities to establish transitional arrangements covering all activities on Al Reem Island.
The ADGM authority will contact the Al Reem island community about the transition process as soon as possible.
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