ADGM announces comprehensive package of Covid support measures
The Abu Dhabi Global Market (ADGM) has announced a comprehensive package of incentives to support new and existing entities in the international financial centre and free zone during the COVID-19 pandemic.
The support measures for new ADGM entities comprise:
- 50% reduction on the incorporation fee for new ADGM companies and limited liability partnerships until 31 December 2020;
- 100% waiver on the continuation fee for business continuing into ADGM from a foreign jurisdiction until 31 December 2020.
The support measures for existing ADGM entities comprise:
- 100% waiver on Commercial Licence renewal fees for operational ADGM-registered entities until 25 March 2021;
- 100% waiver on Business Activities renewal fees for operational ADGM-registered entities until 25 March 2021;
- 100% waiver on Data Protection renewal fees for operational ADGM-registered entities until 25 March 2021;
- 50% refund of Supervision fees already paid by existing entities authorised by the ADGM Financial Services
Regulatory Authority (FRSA) for the year 2020;
- 50% waiver on any new FSRA Supervision fees to be collected until 31 December 2020;
- 100% refund on annual Funds fees already paid by existing FSRA-authorised entities for 2020;
- 100% waiver on annual Fund fees until 31 December 2020;
- 100% waiver on new Temporary Work Permits issuance, renewal and late application fees until 25 March 2021.
All operational ADGM registered entities are eligible for the support offerings and services. All ADGM Registration Authority (RA) support measures are valid until 25 March 2021 to ensure that any entities that have recently renewed will be able to benefit within 12 months. For entities that renewed their commercial licence between 25 and 31 March 2020, the RA will be in contact to arrange a refund of the associated fees.
The RA is aware that many entities that had temporary licences issued will be unable operate. As such, it will pause the current period of Temporary Licence until such time that restrictions are lifted and adjust the expiry dates accordingly.
All financial services entities regulated by FSRA will be eligible for the 50% reduction in supervision fees. For entities that have paid their supervision fees for year 2020, 50% of supervision fees will be refunded. For entities that have not paid their supervision fees for year 2020, supervision fees payable will automatically be reduced by 50%.
ADGM Registration Authority CEO Dhaher Almheiri said: “Our community is our priority. We are committed to working with you, our clients and partners, and to supporting you in any way that we can to weather these unprecedented times.”
There will also be a deferment of rental payments and service charges for office tenants at ADGM Square for 2020. AlSowah Square Properties, the landlord of ADGM Square, will continue working closely with all tenants to provide support during this time.
The ADGM is an international financial centre strategically located in the Emirate of Abu Dhabi. Established by UAE Federal Decree, ADGM’s jurisdiction extends across the entire 114 hectares of Al Maryah Island in the capital of the UAE.
Sovereign Corporate Services is a registered agent of the ADGM and can assist companies looking to incorporate in the ADGM financial free zone.