Adgm Financial License Categories

[Juliane Bari]

FinancialLicenses can be obtained in the Abu Dhabi Global Market (ADGM), which is one of the two Financial Free Zones within the UAE. At the heart of the ADGM model is an independent risk-based regulator, the Financial Services Regulatory Authority (FSRA), which grants licenses and regulates the activities of all banking and financial institutions in ADGM. The ADGM is a broadly based recognized and renowned international financial center serving local, regional and international institutions, and grants permission for different categories of Financial Licensing in ADGM.

Our team of senior level compliance and legal advisors, combined with sophisticated corporate service expertise, we can provide the highest quality advisory and set up services for regulated and unregulated set-ups, at competitive cost and within an efficient and respected processing timeline. The key to the success of a timely ADGM company setup, is the professional drafting of the compliance and business plans within the General Information for Regulated Activities (GIRA), application for financial services permission, presented to the regulatory and /or registrar authorities.

An ADGM license is a permit issued by the Abu Dhabi Global Market Regulatory Authority, allowing companies to conduct various regulated activities within the ADGM free zone. These activities may include financial services, professional services, commercial activities, and more. The type of license required depends on the nature of the business and the services it intends to provide. Abu Dhabi Global Market (ADGM) is a financial free zone in the United Arab Emirates that offers a conducive environment for businesses to thrive. But what exactly is an ADGM license categories, and why is it essential for companies looking to establish a presence in this region?

The specific type of business the applicant plans to engage in determines the category of License that is necessary. For instance, a company involved in low-risk activities such as advising or arranging will need a Category 4 License, while a discretionary portfolio manager will require a Category 3C License. A STP broker, operating on a matched principal basis, will require a Category 3A License, whereas a market maker or credit provider will need a Category 2 License. Full-fledged banks that accept deposits fall under the purview of a Category 1 License.

When it comes to obtaining an ADGM license, you want to work with a team that has the experience, expertise, authority, and trustworthiness to guide you through the process seamlessly. Here are a few reasons why you should choose us for your ADGM license needs:

In conclusion, an ADGM license is a valuable asset for businesses looking to establish a presence in Abu Dhabi and take advantage of the numerous benefits offered by the ADGM free zone. By obtaining an ADGM commercial license, you can enjoy 100% foreign ownership, zero corporate tax, and access to world-class infrastructure and facilities. So why wait? Apply for your ADGM license today and unlock the full potential of your business in Abu Dhabi!

Establishing and operating a business in Al Reem Island involves navigating through various categories and licensing requirements. As the transition to ADGM is ongoing, knowing your business category and the pre-application steps is crucial. Simplifying this process ensures compliance and sets the stage for smooth growth and success in the vibrant Al Reem Island business scene. Plus, it paves the way for an easy license conversion process before the deadline, ensuring a seamless transition to ADGM.

Non-financial businesses, categorized under Category B, contain a range of activities subject to additional regulations and license conditions, particularly Controlled Activities. One sub-category within this group is the Designated Non-Financial Businesses and Professions (DNFBPs), which includes:

Although currently under moratorium until June 30, 2024, CSPs facilitate business incorporation and serve as the main contact for ADGM. Eligible entities may explore the dual licensing regime, enabling them to operate in mainland Abu Dhabi without physical office presence, subject to regulatory requirements.

Retail businesses fall under Category C and operate in the retail sector. These businesses may need to adhere to general commercial licensing regulations and any specific requirements for retail operations in Al Reem Island.

Additionally, Al Reem Island businesses have the opportunity for dual licensing, allowing eligible entities holding ADGM commercial licenses to operate in mainland Abu Dhabi without needing a physical presence on the mainland. This arrangement aims to promote business activity between ADGM and mainland Abu Dhabi, enhancing competitiveness in the region.

The visa parameters have changed over the past year making more people eligible to apply, notably due to a decreased monthly financial self-sufficiency requirement. The latest changes also allow eligible applicants across an extended list of Golden Visa categories to apply and remain resident in the UAE for up to 10 years.

The revised Golden Visa financial requirements are designed to retain and attract international entrepreneurs, executives, scientists, educators, healthcare specialists and investors in the UAE. For many, this means having the option to set up and/or scale operations in the region more quickly.

Real estate investors

Real estate investors will have a higher financial commitment requirement than someone simply working and renting a property during their residency. Real estate investors must purchase a property worth AED 2 million or more. If the investor wishes to take out a loan on the property it must be with a local bank, which in itself will require localised real estate and legal knowledge along with Arabic-speaking capabilities.

They can work in most sectors including IT, science, law, and engineering among others. The UAE requires that they are working at the first or second occupational level as per the Ministry of Human Resources and Emiratisation classification. That entitles them for an extended six-month grace period during the application process.

New UAE Golden Visa categories

There have, however, been more skilled categories added to the Golden Visa programme, which include senior scholars and clerics, industry and 4th industrial revolution specialists (i.e. artificial intelligence, Internet of Things and virtual reality), and education and healthcare specialists.

Like all categories, those newly added will entail additional assessments and Arabic documentation requirements which Intertrust Group assesses as part of its Golden Visa application services.

Those eligible to apply can be granted a five-year green visa or 10-year Golden Visa without the need for a sponsor if they have a letter from an accredited auditor and/or authority in the UAE.

This process requires the paperwork to be in Arabic and submitted to the Dubai Future Foundation. Translation of all required documents into Arabic is something that is part of our Golden Visa service.

The minimum monthly salary requirement to apply for a Golden Visa, without employer sponsorship, is now tax-free AED 30,000 (USD 8,169). Previously it was AED 35,000.

Successful Golden Visa applications give the option for five- or 10-year visas, with automatic renewal. This is an added bonus for anyone with the required monthly salary requirement to stay longer should they choose to.

With no need for a sponsor when applying for a Golden Visa, founders and their executives have more scope. For example, should a company close its operations in the UAE, a Golden Visa holder and their dependents will no longer be forced to leave the country within 30 days. They can stay for the remaining time on their visa, even if the main visa holder should pass away.

Following the enactment of UAE Cabinet Resolution No. 41 of 2023 on 24 April 2023, Abu Dhabi Global Market (ADGM) is set to expand its jurisdiction to Al Reem Island. ADGM has taken various steps to support existing businesses on Al Reem Island, which have until 31 December 2024 to transition to ADGM's legal and regulatory framework. With ADGM working closely with other government bodies including the Abu Dhabi Department of Economic Development (ADDED), the Department of Municipalities and Transport (DMT), the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) and the Ministry of Human Resources and Emiratisation (MOHRE), this transition is expected to be hassle-free and seamless for most businesses. If a business operating on Al Reem Island chooses to transition to ADGM, it could do so by applying for a new registration or by choosing to continue its existing registration by migrating to ADGM. ADGM has also announced that certain businesses which opt to transition before 31 October 2024 will not be required to pay ADGM's registration fee.

Despite ADGM's continued efforts for a smooth transition for existing businesses on Al Reem Island, some businesses will have more to consider than others. We believe that the following businesses will need further assessment of their situation before considering their next steps, so that a transition to ADGM will align with their business needs:

Certain businesses and professions in the UAE require additional third party/external approvals (in addition to ADDED licences). For example, oil and gas field service providers or construction and consultancy companies to whom classification requirements are applicable may not be able to simply transition their existing licensed activities to ADGM.

Businesses with financial activities that are regulated by the Central Bank or the Emirates Security & Commodities Authority may also be affected, as under ADGM they will be required to be regulated and licensed by the Financial Services Regulatory Authority (FSRA) in ADGM. These businesses will need to liaise with the FSRA at the earliest opportunity to ensure a smooth transition.

3a8082e126