Financial free zone ADGM announced a 10-fold expansion of its territory
Abu Dhabi Global Market (ADGM) has recently expanded its jurisdiction to Al Reem Island, in addition to its current jurisdiction in Al Maryah Island. This expansion creates one of the largest concentrated financial districts in the world, with a combined geographic area of 1438 hectares. The UAE Cabinet Resolution No. 41 for 2023, which aims to diversify Abu Dhabi’s economy, lists the thriving financial sector as one of the key focus areas. The expansion of ADGM’s jurisdiction stands as a testament to it being the fastest-growing International Financial Center (IFC) in the region, in addition to its recently published achievements of 2022.
The expansion of ADGM’s jurisdiction to Al Reem Island will help Abu Dhabi become one of the largest International Financial Districts globally. It also underlines ADGM’s Growth Strategy 2023-2027, which aims to grow the financial sector of Abu Dhabi and position it as a leading global city with the sector becoming a key contributor to its GDP. The financial free zone’s jurisdiction allows qualifying business entities to benefit from a preferential corporate tax rate of 0% on their qualifying income.
The expansion of ADGM’s jurisdiction to Al Reem Island provides an opportunity for Abu Dhabi to reinforce its position as a world-leading international financial center and a global destination of choice. Combining its common law jurisdiction and pioneering regulatory framework across these two islands will unlock even greater economic opportunities. The expansion of ADGM’s jurisdiction to Al Reem Island will create an attractive place to live and work across financial centers worldwide.
ADGM has grown to support 1,400 operating entities, 5,500 business licenses, and a workforce of 11,000 people in ADGM Square in the short span of eight years. Last year, ADGM achieved a record increase of 56% in Assets Under Management and a 30% increase in active licenses.
The expansion of ADGM’s jurisdiction is a significant milestone in Abu Dhabi’s economic vision, which aims to diversify the economy and position Abu Dhabi as a leading global city. The expansion of ADGM’s jurisdiction to Al Reem Island will help Abu Dhabi become one of the largest International Financial Districts globally, and it will attract more global financial institutions, family offices, entrepreneurs, and leading fintech talent.