ADGM: Abu Dhabi
Global Market
International Financial Centre and Offshore Holding Jurisdiction — English Common Law, Registration Authority, FSRA and ADGM Courts on Al Maryah Island and Al Reem Island, Abu Dhabi.
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What Is ADGM?
In short: ADGM (Abu Dhabi Global Market) is a full international financial centre, not a conventional offshore jurisdiction. Established in 2013 and operational since 2015, it now covers Al Maryah and Al Reem Islands. Its independent legal system is based on English common law and administered by ADGM Courts, making it ideal for holding companies, family offices, foundations and regulated financial entities. However, ADGM is among the UAE’s most expensive offshore options, with mandatory physical office space and annual licence fees.
ADGM is Abu Dhabi’s international financial centre, built around English common law. Unlike RAK ICC or JAFZA Offshore, which are purely offshore holding vehicles, ADGM operates within a full financial ecosystem of regulated institutions, fintechs, family offices, holding companies and professional service firms.
ADGM companies incorporated for holding, wealth management or non-financial purposes use the Category B (non-financial) commercial licence under the Registration Authority. Regulated financial activities require an FSRA licence under the relevant regulatory framework. Both categories operate under the same English common law legal framework and ADGM Courts jurisdiction.
An Institutional-Grade UAE Jurisdiction
English Common Law Applied Directly
The same legal framework as the UK, Singapore and Hong Kong, administered by the ADGM Courts.
Al Maryah Island & Al Reem Island
Expanded under Cabinet Resolution No. 41 of 2023; all Al Reem Island businesses transitioned to ADGM licences by 31 December 2024.
Over 11,000 Active Licences
Over 11,000 active licences as at mid-2025 — a 31% increase in registrations during 2024.
ADGM at a Glance
The core regulatory, licensing and operating parameters for an Abu Dhabi Global Market entity registered with the ADGM Registration Authority.
| Jurisdiction, Law & Structures | |
|---|---|
| Established | Abu Dhabi Law No. 4 of 2013; operational October 2015 |
| Jurisdiction | Al Maryah Island and Al Reem Island, Abu Dhabi (expanded under Cabinet Resolution No. 41 of 2023) |
| Al Reem Island Transition | All businesses on Al Reem Island transitioned to ADGM licences by 31 December 2024 |
| Governing Bodies | Registration Authority (RA); Financial Services Regulatory Authority (FSRA); ADGM Courts |
| Legal System | English common law applied directly — same framework as UK, Singapore, Hong Kong |
| Primary Holding Structure | Private Company Limited by Shares (PCLBS) — incorporated under ADGM Companies Regulations 2020 |
| Other Structures | Special Purpose Vehicle (SPV), ADGM Foundation, Public Company Limited by Shares, LLP, LP, Branch |
| Dispute Resolution | ADGM Courts — English common law judgments enforceable within UAE and internationally |
| Licensing, Tax & Operations | |
|---|---|
| Physical Office | MANDATORY — business centre from USD 19,000 per year; fitted office from USD 55 per sq ft per year |
| Non-Financial Licence (Category B) | USD 5,000 per year (reduced in 2025 from USD 10,000) |
| Regulated Financial Licence (FSRA) | Varies by activity category — USD 10,000 to USD 100,000+; extensive documentation required |
| UAE Corporate Tax | UAE CT applies — FTA registration mandatory; QFZP analysis required |
| Visa Sponsorship | Available — ADGM companies can sponsor UAE residency visas |
| UAE Real Estate | ADGM has its own real property regime; Al Maryah and Al Reem Island real estate under ADGM Real Property Regulations 2024 |
| UAE Bank Account | Permitted; strong bank acceptance due to ADGM’s institutional credibility |
| Active Companies (June 2025) | Over 11,000 active licences as at mid-2025 (31% increase in 2024) |
Who Uses ADGM? – Business Setup in Abu Dhabi Global Market
ADGM suits clients for whom the English common law legal framework, ADGM Court jurisdiction, FSRA regulatory access, institutional credibility for high-value banking relationships, or proximity to Abu Dhabi’s sovereign wealth fund ecosystem is commercially material. Family offices structuring multi-generational wealth, regulated asset managers serving institutional investors, fintech companies accessing the RegLab sandbox, and international financial institutions establishing Abu Dhabi presence all choose ADGM. The mandatory physical office requirement and higher costs screen out clients whose sole objective is low-cost holding – for those clients, RAK ICC or Ajman Offshore is more appropriate. For business setup in Abu Dhabi Global Market, ADGM is the natural choice for structures requiring these institutional advantages.
Family Offices
Single Family Office (SFO) and Multi-Family Office (MFO) – the most common non-regulated ADGM holding structure.
Holding Companies
Holding company for UAE and international operating entities requiring English common law protection.
Asset Management
FSRA-regulated asset management – fund management, investment advisory, portfolio management.
Financial Services
FSRA-regulated financial services – brokerage, custody, insurance, banking.
ADGM Foundations
ADGM Foundation for succession planning and multi-generational wealth transfer.
Fintech & RegLab
Fintech and regtech companies using the FSRA RegLab regulatory sandbox.
International Law Firms
International law firm MENA offices requiring English common law jurisdiction.
Private Equity & Venture Capital
Private equity and venture capital fund structures with FSRA-regulated GP.
Real Estate Holding
Holding vehicles for Abu Dhabi real estate on Al Maryah and Al Reem Islands and companies’ setup in Abu Dhabi offshore.
Special Purpose Vehicles
Special Purpose Vehicle for structured finance or specific transaction holding.
Re-domiciliation
Companies setup in Abu Dhabi offshore can also include international companies re-domiciling to ADGM from other offshore jurisdictions.
What ADGM Is Known For: Use Cases and Commercial Profile – Abu Dhabi Global Market Business Setup
ADGM processed a 31% increase in company registrations in 2024, reaching over 11,000 active licenses by mid-2025. Assets under management in ADGM grew over 200% year-on-year. Global financial firms including PGIM, Franklin Templeton, Skadden, and Goldman Sachs operate from ADGM. The financial centre’s RegLab regulatory sandbox has launched over 100 fintech companies into the UAE and international markets. ADGM’s ADGM Courts have issued over 1,000 judgments under English common law, with judgments enforceable internationally in common law jurisdictions without relitigation.
The core commercial problem ADGM solves is institutional-grade UAE presence under English common law. For any client or counterparty requirement that cannot be satisfied by UAE civil law or by the regulatory frameworks of RAK ICC or JAFZA Offshore – because English common law courts are contractually required, because FSRA regulation is needed, because the Abu Dhabi sovereign fund counterparty ecosystem demands ADGM presence, or because the structure involves a fund or investment vehicle needing an FSRA-regulated administrator – ADGM is the only UAE answer.
ADGM’s active company base includes the Abu Dhabi offices of Goldman Sachs, JPMorgan, Franklin Templeton, PGIM, Skadden, Clifford Chance and dozens of other international financial institutions. It also hosts over 100 FSRA-regulated family offices, a growing cluster of fintech companies under RegLab and non-regulated holding companies using the Category B framework. With over 11,000 active licenses as at mid-2025, ADGM is the fastest-growing financial center in the Middle East.
ADGM companies are UAE-incorporated entities subject to Federal Decree-Law No. 47 of 2022 on corporate tax. FTA registration is mandatory. An ADGM offshore entity that meets QFZP conditions may apply a 0% corporate tax rate on qualifying income under Ministerial Decision No. 229 of 2025. Non-qualifying income is taxed at 9% above AED 375,000. QFZPs must maintain audited financial statements under Ministerial Decision No. 84 of 2025. ESR was abolished for FY2023 onwards under Cabinet Decision No. 98 of 2024; substance requirements now exist within the CT Law for QFZP purposes.
Entity Types and Structures for Offshore Company Setup in Abu Dhabi
Four routes cover the great majority of ADGM registrations — a private company for holding and operating, a ring-fenced SPV, a Foundation for succession, and the FSRA-regulated pathway for financial services. IncHub advises on which fits your ownership, governance and regulatory profile.
Private Company Limited by Shares (PCLBS) – Primary Holding Structure
The standard ADGM entity for holding companies, family offices, investment vehicles and non-financial businesses. Incorporated under ADGM Companies Regulations 2020. Category B (non-financial) license. This structure is commonly considered for offshore company setup in Abu Dhabi where an institutional legal framework is required.
Special Purpose Vehicle (SPV) – Structured Finance and Transaction Holding
A private company limited by shares established for a specific, narrow purpose – holding a specific asset, facilitating a specific transaction, or acting as a ring-fenced vehicle in a structured finance arrangement.
ADGM Foundation – Succession and Wealth Planning
ADGM Foundations are purpose-built vehicles for wealth management, philanthropy, and succession planning. Unlike a company, a foundation has no shareholders – assets are held by the Foundation itself for the benefit of beneficiaries under a Charter and regulations.
Regulated Company Formation in ADGM – Financial Services
For regulated company formation in ADGM, an FSRA Financial Services Permission (FSP) is required in addition to the ADGM commercial license. FSRA regulates fund management, investment advisory, brokerage, banking, insurance, custody, and digital assets.
What ADGM Can and Cannot Do
The boundaries of an ADGM entity are set by its status as a free zone entity within a common law financial centre — wide powers for holding, investment and regulated financial activity, with defined limits on mainland trading and VAT treatment.
UAE mainland commercial trading without a separate entity
An ADGM offshore entity is a free zone entity and cannot directly trade with UAE mainland customers without a mainland entity or appropriate structuring.
JAFZA Designated Zone VAT treatment on goods
ADGM is not a Designated Zone for UAE VAT purposes; standard UAE VAT applies to all taxable supplies of goods and services in ADGM.
Setup Costs: Understanding ADGM Company Formation Cost
The following figures are indicative, and the ADGM company formation cost should be confirmed against the current ADGM fee schedule. Exact costs depend on share capital, registered agent chosen and any additional services required. Contact IncHub for a precise quote.
| Cost Item | Indicative Range |
|---|---|
| ADGM Category B Non-Financial License | USD 5,000 per year (reduced in 2025) |
| ADGM Registration Fee (one-time) | USD 1,500 – 3,000 (confirm current schedule with ADGM RA) |
| Data Protection Notification (one-time) | USD 200 – 500 |
| Physical Office — Business Centre (annual) | From USD 19,000 per year (one desk, Al Maryah Island) |
| Physical Office — Fitted Office (annual) | From USD 55 per sq ft per year |
| FSRA License (regulated activities, annual) | From USD 10,000 (Category 4) to USD 100,000+ (Category 1/2); plus extensive application documentation |
| Annual Renewal | USD 5,000 license fee plus office lease |
| Corporate Bank Account Opening | No government fee; ADGM’s brand facilitates bank acceptance |
| ADGM Foundation Registration | Separate registration fee; confirm with ADGM RA |
Precise ADGM Quote
Not sure what your structure will cost? Get an exact, itemised quote for your entity type, licence category and office arrangement — no surprises, no hidden add-ons.
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Setup Process for Abu Dhabi Offshore Company Formation
From entity-type determination to a fully registered ADGM company with an FTA tax registration and a bank account — IncHub manages every stage.
* FSRA approval applies only to regulated financial activities and runs before incorporation is completed. Durations are indicative and several stages overlap — ADGM states that, provided the application is complete and all regulatory requirements are satisfied, registration can generally be approved within 10 business days.
Why Businesses Choose ADGM
English Common Law — the UAE’s only independent common law court system
ADGM Courts apply English common law directly without reference to UAE civil law. Judgments are internationally enforceable in common law jurisdictions. For contracts, fund documents and investment agreements where counterparties require common law courts, ADGM is the only UAE option outside of DIFC.
FSRA Regulation — the UAE’s most respected Abu Dhabi financial services regulator
The FSRA provides a regulatory framework for asset management, fund administration, investment advisory, brokerage, banking, insurance and digital assets. For institutional investors whose mandates require regulated counterparties, an FSRA licence is a commercial prerequisite.
Abu Dhabi Sovereign Ecosystem Proximity
ADGM sits at the heart of Abu Dhabi’s financial district. ADIA, Mubadala and ADQ are all located within or adjacent to the ADGM ecosystem. For fund managers, advisers, investment banks and professional services firms targeting Abu Dhabi institutional capital, ADGM presence is the expected baseline. For Abu Dhabi Global Market business set up, this ecosystem is a major advantage.
ADGM Foundation for Wealth Planning
ADGM Foundations are purpose-built succession vehicles unavailable in most other UAE offshore or free zone jurisdictions. For multi-generational wealth structuring, charitable endowments and complex family governance arrangements, the ADGM Foundation provides a UAE law vehicle under a world-class governance framework.
Fastest Growing Financial Centre in the Middle East
31% increase in company registrations in 2024, over 11,000 active licences, assets under management up over 200% year-on-year. ADGM’s momentum brings increasing counterparty recognition, banking relationships and regulatory credibility that compound over time.
UAE Residency Visa Access
Unlike RAK ICC and Ajman Offshore, ADGM companies can sponsor UAE residency visas for founders, directors and employees. This is a meaningful practical advantage for clients who need both an offshore or holding structure and a UAE residency basis.
When ADGM May Not Be the Right Fit
Cost-minimisation is the primary driver
ADGM’s mandatory physical office (from USD 19,000 per year) makes it the most expensive UAE offshore option by a significant margin. Clients whose sole requirement is a UAE holding certificate or asset protection vehicle at minimum cost should choose RAK ICC or Ajman Offshore.
Simple general trading or operations
ADGM’s non-financial Category B framework is primarily used for holding, professional services and investment businesses. For general trading, import-export, manufacturing or consumer services, a UAE free zone or mainland entity is more appropriate.
Regulated activities not covered by FSRA
FSRA regulates financial services. It does not provide regulatory frameworks for healthcare, education, media or other non-financial regulated sectors. These require the relevant UAE federal or emirate regulator alongside a mainland or free zone licence.
As a dual-entity group, IncHub advises when ADGM is right, when another offshore or free zone jurisdiction fits, and when a combination is best.
ADGM vs DIFC vs RAK ICC
All three are used for UAE holding and wealth structures — the right choice depends on the legal framework you need, whether regulated financial activity is involved, and your cost tolerance.
| Feature | ADGM | DIFC | RAK ICC |
|---|---|---|---|
| Location | Al Maryah & Al Reem Island, Abu Dhabi | Dubai | Ras Al Khaimah |
| Legal System | English common law applied directly | Common law framework with its own DIFC laws | Offshore holding regulations |
| Courts | ADGM Courts | DIFC Courts | UAE courts (ADGM or DIFC Courts by opt-in) |
| Financial Regulator | FSRA | DFSA | None |
| Physical Office | Mandatory · from USD 19,000 / year | Required | Not required — registered agent only |
| UAE Residency Visas | Available | Available | Not available |
| Foundations Available | Yes — ADGM Foundations Regulations 2017 | Yes | Yes |
| Relative Annual Cost* | Highest | High | Lowest |
| Best For | Family offices, FSRA-regulated firms and holding structures needing English common law | Dubai-oriented families and financial institutions | Low-cost international holding and asset protection |
* Indicative comparison only. Actual costs and requirements vary with entity type, activity, office arrangement and regulatory status — confirm current fees with each authority before deciding.
Compliance and Ongoing Obligations
An ADGM entity carries obligations to the Registration Authority, to the FSRA where the entity is regulated, and to the Federal Tax Authority. The recurring obligations are listed below.
Offshore Compliance Guide
Full details in IncHub’s UAE Offshore Company Compliance Guide at www.inchub.ae. Corporate tax, QFZP analysis, UBO, financial statements, renewals and AML/CFT in one place.
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Read the Compliance Guide →How IncHub Can Help With Offshore Business Setup in Abu Dhabi
IncHub provides company formation services in Abu Dhabi offshore through ADGM advisory, coordination with the ADGM Registration Authority and FTA tax registration for ADGM entities. For FSRA-regulated structures, IncHub advises on the regulatory application strategy and coordinates with FSRA-specialist legal counsel. IncHub does not hold an FSRA licence itself but works with authorised FSRA-licensed partners where regulatory services are required.
What Our Clients Say
See how IncHub helped entrepreneurs, family offices and established businesses with ADGM offshore company formation, licensing, structuring and business setup in the UAE.
Frequently Asked Questions
Set Up Your ADGM Company with IncHub
IncHub manages the full ADGM process end-to-end — entity type determination, name reservation, registered office arrangement on Al Maryah or Al Reem Island, incorporation with the ADGM Registration Authority, FSRA coordination where required, FTA corporate tax registration, bank account introduction and the ongoing compliance calendar. One partner, from application to fully operational.