Abu Dhabi Global Market (ADGM) is the UAE's premier financial services free zone — operating under direct English common law, regulated by the Financial Services Regulatory Authority (FSRA), and home to over 2,500 licensed firms ranging from family offices to global banks. Here's how to set up in 2026.
What ADGM is
ADGM was established in 2015 as Abu Dhabi's answer to DIFC. It sits on Al Maryah Island (now extended to Al Reem Island) and operates a self-contained legal, regulatory, and tax regime. Critically, ADGM has fully adopted English common law — meaning UK case law and statute apply directly, and ADGM Courts are presided over by senior English judges.
Three core registries
| Registry | What it licenses |
|---|---|
| Registration Authority (RA) | Companies, foundations, partnerships, SPVs, holding entities |
| Financial Services Regulatory Authority (FSRA) | Banks, fund managers, advisors, brokers, custodians, exchanges, crypto |
| ADGM Courts | Civil and commercial disputes (English-language proceedings) |
Who ADGM is for
- Investment managers running funds, family offices, or private wealth.
- Banks setting up branches or representative offices.
- FinTech and crypto firms wanting common-law regulation.
- Holding companies and SPVs (especially for cross-border structures).
- Foundations replacing offshore trusts (Cayman, Jersey).
- Tech and innovation firms in the ADGM Tech Hub.
Licence categories under FSRA
| Category | Activity | Capital (AED) |
|---|---|---|
| 1 | Accepting deposits / banking | From 38,000,000 |
| 2 | Dealing as principal / market making | From 7,300,000 |
| 3A | Dealing in investments as agent | From 2,000,000 |
| 3B | Custody / trust services | From 1,500,000 |
| 3C | Asset / fund management | From 1,500,000 |
| 4 | Advisory / arranging | From 36,500 |
| 5 | Islamic finance window | Add-on |
Annual supervision fees range from AED 18,000 (Category 4) to AED 200,000+ (Category 1).
2026 setup costs (non-financial entity)
| Item | Fee (USD) |
|---|---|
| Application fee | 500 – 1,500 |
| Incorporation fee | 1,000 – 2,000 |
| Annual licence (private company) | 2,000 – 5,000 |
| Office (smallest, Al Maryah / Al Reem) | 15,000 – 30,000 / year |
| Per visa | 2,000 – 3,000 |
Year-1 realistic total for a small holding company: USD 25,000 – 40,000 (AED 92,000 – 147,000).
Why English common law matters
ADGM is the only jurisdiction in the Middle East that has wholesale adopted English common law as it is — including the UK Companies Act 2006, Insolvency Act, and case law precedent. For international investors, this delivers:
- Predictable contractual interpretation aligned with London market practice.
- Full enforceability of share-purchase agreements, shareholder agreements, and convertible notes.
- Recognition of trusts and foundations identical to UK / Channel Islands models.
- ADGM Court judgments enforceable in the UAE federal courts and across the GCC.
Setup process for a non-financial entity
- Determine entity type — private company limited by shares, LLP, foundation, or SPV.
- Reserve the entity name through ADGM Online Registry.
- Submit incorporation application with shareholder, director, and beneficial-owner KYC.
- Pay incorporation and first-year licence fees.
- Receive certificate of incorporation (typically within 2 weeks).
- Lease registered office (mandatory — virtual offices are not accepted for most activities).
- Open bank account, apply for visas, and begin operations.
Setup process for a financial entity
- Pre-application meeting with FSRA to confirm permission scope and substance plan.
- Submit Regulatory Business Plan (RBP), governance manuals, capital adequacy proof, and compliance / risk frameworks.
- FSRA review and Q&A — typically 6–9 months.
- In-Principle Approval (IPA) issued; complete capitalisation, hire approved persons, and finalise office.
- FSRA grants the Financial Services Permission (FSP).
- Begin regulated activities; first annual prudential filing within 6 months.
The ADGM SPV — replacing offshore
The ADGM SPV (Special Purpose Vehicle) is one of the most-used wrappers globally for holding investments, IP, real estate, and family wealth. Setup is fast (10–15 working days), cost is low (USD 4,000 – 6,000 for year 1), and the structure is recognised by international banks. It has largely replaced BVI and Cayman SPVs for regional family offices.
Frequently asked questions
Is ADGM tax-free?
ADGM entities are subject to UAE federal corporate tax (9% above AED 375,000 profit) but may qualify for 0% on qualifying income. There's no income, capital gains, or withholding tax at the ADGM level.
Do I need a physical office in ADGM?
Yes for most activities. Co-working memberships are available (Hub71 partners) but the registered office must be in ADGM's geographical zone (Al Maryah / Al Reem).
How long does FSRA authorisation take?
Typical financial services authorisation: 6–9 months from formal application. Pre-application planning adds another 1–3 months.
Can I redomicile a foreign company to ADGM?
Yes — ADGM allows continuance of foreign companies (BVI, Cayman, Jersey, etc.) into ADGM, preserving incorporation date and history. The redomiciliation process takes 4–8 weeks.
Are ADGM judgments enforceable in Dubai?
Yes — under a 2018 memorandum, ADGM Court judgments are enforceable through Dubai Courts without re-litigation.
Is ADGM only for big firms?
No — ADGM SPVs and Category 4 advisory licences are accessible to small firms and individual investors. Family offices below USD 50m AUM are common.
How we help
Visa Simplified works with ADGM-licensed law firms and corporate service providers to handle entity formation, FSRA authorisation, office leasing, and visa processing. See our business setup service. If you're comparing free zones across Dubai and Abu Dhabi, also read our DMCC Dubai setup guide.
Need help with this?
Our PRO consultants handle the full process end-to-end — documents, government submission, and delivery. Service fee is fully refundable pre-submission.