Abu Dhabi Global Market (ADGM), which serves as the financial hub of the UAE capital, will undergo a significant expansion to include Reem Island due to the rising demand from foreign companies hoping to establish operations there. Abu Dhabi Global Market is located on Al Maryah Island.
According to a market statement, the newly extended jurisdiction will be ten times the size of the market’s present footprint, making it one of the largest financial centres in the world.
Following the expansion, Abu Dhabi Global Market will have a total area of 1,438 hectares, or 14 million square metres. According to its official website, the Dubai International Financial Centre (DIFC) is around 44 hectares. The move to expand ADGM was decided by UAE Cabinet Resolution 41 for 2023.
According to a statement from Abu Dhabi Global Market, it is a component of the UAE’s economic agenda, which names the financial district of the capital as a vital area for diversification.
“The resolution expands ADGM’s jurisdiction as a Financial Free Zone to Al Reem Island, adjacent to its current home of Al Maryah Island, following increased demand from a wide range of international companies choosing Abu Dhabi as a preferred destination to expand and grow their businesses globally,” the statement said.
A business entity can take advantage of the 0% preferred corporation tax rate on their qualifying income by having a base there, the statement added.
The current ADGM is 95% occupied, and there is demand from foreign businesses looking to set up shop there, according to Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development and ADGM.
The market presently has 1,400 operating companies, 5,500 company licences, and 11,000 employees working in ADGM Square, according to the announcement. In the previous year, it had a 56% growth in assets under management and a 30% increase in active licences.