All retail businesses in Al Reem Island must convert from an ADDED Mainland licence to an ADGM free zone licence by 30^th March 2024 and all other businesses have until 31^st December 2024 to convert to an ADGM licence.

In April 2023, Abu Dhabi Global Market (ADGM) announced its expansion into Al Reem Island in Abu Dhabi. Al Reem Island has until now been home to hundreds of Mainland businesses registered with the Abu Dhabi Department of Economic Development (ADDED).

As of November 2023, any new business wishing to set up on Al Reem Island must obtain a business licence through the ADGM Freezone. This means that an ADGM licence will be required for Al Reem Island moving forward and that existing companies must convert their licences to ADGM.

What does this mean for existing businesses in Al Reem Island?

In a recent announcement, all companies including existing companies will need to convert their ADDED Mainland business licence to an ADGM Freezone licence, should they wish to remain on Al Reem Island in Abu Dhabi.

ADGM is a globally recognised international financial centre and Freezone Authority. Being a Freezone jurisdiction means that any Mainland companies in Al Reem Island must either convert their business licence to ADGM or relocate their office to another Mainland area.

Learn more on ADGM

What is the deadline to convert an ADDED Mainland licence to an ADGM licence?

For retailers/ retail businesses on Al Reem Island, the deadline to convert their business licences is by 30^th March 2024.

All other commercial companies have until 31^st December 2024 to convert their licence or move from Al Reem Island.

How do I convert my Abu Dhabi Mainland DED licence on Al Reem Island to ADGM?

ADGM has been able to match the majority of business activities to accommodate the transfer of ADDED Mainland businesses into ADGM free zone.

Here are the steps to converting a licence in ADGM:

For Retail – 30 March 2024 deadline

All retailers and retail businesses can be accommodated in ADGM. ADGM has aligned retail business activities to make it possible for all retail businesses in Al Reem Island to convert to an ADGM licence.

1. Apply to ADDED mainland licencing authority and obtain a No Objection Certificate (NOC) to transfer to ADGM.
2. Apply to ADGM for transfer by filling in the application form to request for the licence and the commercial registry transfer to Abu Dhabi Global Market. Sovereign and PRO Partner Group can assist you with the form and application as required.
3. Follow up with ADGM to finalise the licence transfer and update.

Other businesses – 31^st December 2024 deadline

1. Conduct an initial pre-check with Sovereign and PRO Partner Group (SOV PPG) to check that your business activities can match in ADGM. Most business activities will align with your current ADDED Mainland licence.
2. Apply to ADDED mainland licencing authority and obtain a No Objection Certificate (NOC) to transfer to ADGM.
3. Apply to ADGM for transfer by filling in the application form to request for the licence and the commercial registry transfer to Abu Dhabi Global Market. SOV PPG can assist you with the form and application here.
4. Follow up with ADGM to finalise the licence transfer and update.

If a company does not wish to convert or cannot convert to an ADGM free zone licence, then they will need to relocate to another mainland location – SOV PPG can assist you with relocation services and licence updates.

Incentives for quick transfer to ADGM licence

The ADGM Authority are incentivising quick action in converting ADDED business licences to ADGM licences.

If a company transfers their business from ADDED to ADGM licence in Q1 (by March 2024) then ADGM will absorb the government transfer fee and no government transfer fees will fall to the client.

How can Sovereign and PRO Partner Group assist?

As a registered corporate service provider in ADGM, and with ADDED Sovereign and PRO Partner Group can assist all companies with converting their licence from ADDED Mainland to an ADGM licence. An ADGM Freezone licence will be required to remain on Al Reem Island in Abu Dhabi.

Converting to an ADGM free zone licence will depend entirely on your business activities. Engaging with us for an initial pre-check to make sure your business activities align with ADGM is important. We will then be able to assist with the full transfer of licence process using our close connections with ADDED and ADGM authorities.

Sovereign and PPG are experiencing this change in Al Reem Island first-hand. We ourselves have both mainland ADDED licence in Al Reem Island - Addax Tower and are a registered corporate services provider in ADGM and therefore have in-depth knowledge of the steps that need to be taken to convert to an ADGM free zone licence. As an ADGM registered Corporate Service Provider (CSP) we can facilitate the process with the regulators ourselves.