Top 7 Advantages of Setting Up in ADGM

1. Legal and Regulatory Advantages

ADGM has its own independent legal system based on the English common law. Contracts, corporate rules, and dispute processes are clear and familiar to international firms. The ADGM Financial Services Regulatory Authority (FSRA) is a well-regarded, transparent supervisor with a risk-based approach​.

These factors give companies confidence, eliminating the need for UAE partners or sponsors. Businesses in ADGM can have 100% foreign ownership, and there are no limits on hiring foreign staff​. Investors can control their operations and bring in global talent without legal hurdles.

ADGM’s legal independence and liberal ownership rules create a business-friendly regulatory environment.

2. Tax and Ownership Benefits

Companies based in ADGM enjoy an extremely favourable tax environment. There is 0% corporate tax on qualifying income​ and 0% personal income tax​. Capital gains and dividends are also tax-free.

The UAE levies no withholding taxes on dividends, interest, or royalties paid abroad from the ADGM, and there are no restrictions on repatriating profits back to the parent company.

A PwC analysis explicitly notes ADGM’s “0% corporate income tax rate” and no limits on profit repatriation​. This tax-neutral setup helps firms retain more earnings for growth. Some of the major financial benefits of setting up in ADGM include:

• 100% Foreign Ownership: ADGM permits 100% foreign ownership in companies, with no local partner required.
• Unlimited Profit Repatriation: Firms can freely transfer capital and profits from ADGM freely​.
• 0% Taxation: ADGM grants 0% tax on corporate profits and personal income for a period of 50 years, renewable.
• Extensive Tax Treaties: The UAE’s network of over 90 double-taxation treaties helps avoid double taxation on cross-border income.

3. Diverse Business Ecosystem and Activities

Another advantage of setting up in ADGM is that it supports a broad scope of industries. ADGM licensing offers major financial services, including banking, insurance, asset management, brokerage, and non-financial activities such as trading, consultancy, and holding companies.

To help you understand this better, here’s a breakdown of business activities and their perks for renting flexible office spaces in ADGM:

Business Registration Options

A company can register as anything from an investment bank to a fintech startup or as a corporate office, family office, or professional consultancy. This flexibility attracts many types of businesses.

Growth and Diversity in ADGM Institutions

At the end of 2024, ADGM had housed 275 financial institutions within its jurisdiction, 79 of which were licensed during that year. Financial firms benefit from clustered expertise, and non-financial firms, such as those in legal, audit, consulting, and IT services, are available to support them.

Inclusion of Non-Banking Sectors

Non-banking companies also do well here. ADGM encourages consultancies, law firms, travel agencies, and lifestyle businesses to set up offices. For example, the adjacent Galleria Mall offers high-end retail, gyms, and restaurants catering to ADGM’s professional community​. This means a lawyer, family office, or tech startup can work alongside banks and funds.

The combination of financial and non-financial activities generates synergies, allowing banks to engage directly with local fintech innovators and consultancies within ADGM.

Overall, the economic advantages of setting up in ADGM provide access to a comprehensive ecosystem, comprising everything from financing to professional services and lifestyle amenities, which supports both large institutions and smaller businesses.

4. FinTech and Innovation Hub

ADGM also benefits fintech and innovative ventures in the MENA region. Below, we’ve covered some of the aspects for a detailed insight.

FinTech Regulatory Laboratory (RegLab)

The FSRA was the first in the region to launch a FinTech Regulatory Laboratory (RegLab), a sandbox where fintech companies can test new products under supervision. This allows startups to pilot blockchain, AI, or payment innovations in a safe environment with real banks and insurers.

Digital Lab for Collaboration

ADGM also offers a Digital Lab, a collaborative space where banks and technologists co-create innovative financial solutions.

Partnership with Hub71

ADGM is also a partner to Hub71, Abu Dhabi’s venture hub, which brings together top tech corporations and investors to support founders.

Abu Dhabi Finance Week

Each year, ADGM hosts Abu Dhabi Finance Week, the region’s premier finance event, providing startups with exposure to global networks and capital. These innovation initiatives mean that the advantages of setting up in ADGM for tech-driven companies include direct access to mentorship, funding, and tech-advanced regulatory frameworks.

5. Support for Startups, SMEs and Entrepreneurs

One of the major advantages of setting up in ADGM is the accommodation of startups, SMEs, and entrepreneurs, as well as the additional perks that come with it. We’ve covered some of them below.

Hassle-Free Company Registration

Company registration can be completed online through ADGM’s digital portal​, making the setup process quick and straightforward. The free zone offers flexible corporate forms, including Special Purpose Vehicles (SPVs), to simplify asset holding and project financing​.

Golden Visas

ADGM also offers Golden Visas to qualifying investors, entrepreneurs, and key employees, allowing them to obtain long-term UAE residency for up to 10 years through their company in ADGM. This makes it easier to attract and retain talent in the company.

Home to Flexible Workspaces

In addition to the robust startup ecosystem that ADGM companies tap into, there has been a rising demand for flexible spaces and innovation centres on Al Maryah Island and its surrounding areas. This facility allows companies to experiment with growth ideas and expand their presence without worrying about hefty rental costs. The best part? Flexible spaces are affordable and scalable, thereby reducing the risk impact.

6. Lifestyle and Visa Benefits

Beyond business, ADGM’s location in Abu Dhabi offers an excellent lifestyle for owners and staff. The Emirate consistently ranks among the safest and most livable cities globally. It boasts world-class schools, healthcare facilities, family-friendly amenities, and convenient travel links via Abu Dhabi and Dubai airports.

On the visa side, ADGM companies can sponsor their foreign employees under UAE labour laws, just like any Abu Dhabi company. Moreover, entrepreneurs and investors can apply for UAE Golden Visas, offering 5-10-year residency, through their ADGM firm​.

Overall, these lifestyle and visa advantages mean that doing business in ADGM provides employees with a comfortable quality of life and hassle-free residency for foreigners.

7. Brand Visibility and Strategic Location

Further advantages of setting up in ADGM for businesses include expanding their reach and enhancing brand visibility. Abu Dhabi’s international profile as a stable Gulf capital with world-class infrastructure benefits ADGM tenants. Recently, ADGM also won the award for being the most trusted financial centre brand in the Middle East, which positions it as the most credible business destination among clients and partners alike.

ADGM’s location is another gateway advantage. In Abu Dhabi, businesses benefit from the nexus of east-west trade and finance​. The UAE’s time zone (GMT+4) is well-positioned between Asia and Europe, enabling 24-hour coverage for global companies.

Furthermore, Al Maryah Island, home to ADGM, is located near key ministries, global banks, and the Abu Dhabi Stock Exchange, creating convenient synergies. Finally, the city’s connectivity to major airports, ports, and road links offers easy commutes and accessibility.

Join the ADGM by Renting a Flex Space at Office Hub!

In summary, there are multiple advantages of setting up in ADGM. Companies benefit from an independent English common-law system, a strong regulatory environment, 100% foreign ownership, and a 0% tax rate. Additional benefits include diverse business ecosystem opportunities, the growth potential for fintech startups, a friendly lifestyle, favourable visa policies, and effective brand visibility strategies.

Establishing the right office presence is mandatory to fully leverage these benefits. But before you feel overwhelmed about the search process for a reliable provider, Office Hub is here to save the day!

We connect tenants with globally recognised providers that manage flexible spaces in the Abu Dhabi Global Market (ADGM) and beyond. You can easily browse verified listings and compare offices from partners like Regus, Cloud Spaces, and WeWork.

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