Does My Business Require Physical Office Space in ADGM? Here’s What to Know!
Yes, your business must have a physical office space in ADGM (Abu Dhabi Global Market). Unlike some places that allow purely virtual licenses, ADGM requires all entities, except certain SPVS, to rent real space.
You must submit a signed lease or membership agreement when applying for your ADGM license. The ADGM registration process explicitly requires proof of office space on Al Maryah or Al Reem Island.
ADGM’s startup license rules are strict. For instance, their Tech Start-Up license requires at least one dedicated desk or office space. Hot-desking or only a PO box is not accepted. This license further allows for three employee visas per desk, catering to small teams.
Now that we've established the basic requirement for the physical office space requirement in ADGM. Let’s explore what constitutes an ADGM company and the context in which this requirement applies. Continue reading, as this blog post provides additional information on ADGM, physical office space options in the region, cost estimations, and other factors to consider when expanding your business in Abu Dhabi’s global market. Read on!
What is ADGM?
Abu Dhabi Global Market (ADGM) is the premier international financial centre, an independent free zone established in 2013. It is a centre for global finance, fintech, and innovation, with its regulator and courts, English common law, and a highly business-friendly setup.
ADGM offers attractive benefits to businesses, such as the following:
- Tax advantages: 0% corporate tax on most activities, no withholding taxes, and freedom to repatriate all profits.
- Full foreign ownership: 100% foreign-owned companies are allowed.
- Robust legal framework: ADGM applies English common law, providing companies with high international standards and investor confidence.
- Connectivity and infrastructure: ADGM is located in Abu Dhabi and benefits from 24-hour business support and access to world-class facilities.
Physical Office Space Options in ADGM for Businesses
Renting flexible workspaces has become the norm in ADGM. Below are the workspace options to consider if you need a physical office address.
Coworking and Serviced Offices
Many global providers operate in ADGM Square. Regus offers furnished offices and coworking desks in the Al Maqam Tower, while Cloud Spaces offers a premium coworking centre in the Al Sarab Tower. Similarly, IWG’s Signature Business Lounge and The Executive Centre have modern workspaces at Al Maqam Tower.
WeWork also offers private spaces and shared lounges in Al Maryah, at the Al Khatem Tower. Servcorp is another global name in Etihad Towers, providing luxury meeting rooms and serviced offices. These spaces usually include desks, meeting rooms, high-speed Wi-Fi, and flexible lease terms.
Virtual Offices or Flexi Desks
Some providers allow you to rent an address, a shared desk, or a “flexi-desk” that includes mail-forwarding and phone services. However, ADGM still requires at least one dedicated desk as proof of presence. Virtual office packages can cover address use and occasional meeting-room access, but you can’t circumvent the rule.
In practice, many startups opt for a single desk or small office in a coworking centre to keep costs low while meeting ADGM requirements.
Cost Estimations for Renting Flexible Offices in ADGM
Recent listings and market analyses indicate that office rents in ADGM range from approximately AED 2,600 to AED 2,900 per square meter annually, depending on factors such as location, office size, and amenities.
On the other hand, coworking and flexible office solutions offer more affordable options. Providers like Regus and Cloud Spaces offer dedicated desks starting from AED 674 to AED 2,395 per month, catering to startups and SMEs seeking cost-effective workspace solutions.
Additionally, several factors influence office rental costs in ADGM, including:
- Office Type: Coworking and serviced spaces offer lower upfront costs than traditional leases.
- Building Grade & Location: Premium towers, such as Al Maqam Tower, or offices within ADGM Square command higher rates due to their proximity to luxury hotels, malls, and waterfront views.
- Lease Terms: Flexibility in duration, such as short-term vs. multi-year, and payment schedules. i.e., single vs. multiple cheques can further affect pricing.
- Fit-Out & Services: Fully fitted spaces with furnishings, utilities, and shared facilities may incur higher monthly charges but offer cost-effective plans in the long term.
Additional Factors to Consider
Think beyond just rent when choosing an office space. Below are practical tips for securing the best offices in ADGM.
- Company Size & Visas: Firstly, consider the number of people working there. ADGM grants up to 3 employee visas per dedicated desk for a Tech Start-Up license. If you plan to hire 10 people, you’ll need 4 desks, as each person requires 3 visas, so budget space accordingly.
- License Type: Some ADGM licenses, such as Tech Start-Up or Corporate HQ, have specific office rules. A Tech license can only sponsor visas based on desks. Always check that your chosen office meets the license’s requirements; for example, a private company vs. a branch may have different needs.
- Lease Flexibility: While traditional leases in ADGM range from 1 to 3 years, coworking spaces offer the option of starting with short-term or even month-by-month leases, which is helpful for uncertain or rapidly growing businesses. Take your time and decide which flexible lease option best suits your business needs.
- Location & Amenities: ADGM Square (Al Maryah) is the central business district, situated in a prime location surrounded by malls, hotels, and transport links. It is ideal for client meetings and employee lifestyles. Al Reem Island is another appealing business destination that has recently been added to the ADGM jurisdiction. It offers parking and nearby public transportation.
- Budget & Fit-out: Ensure that all service charges, maintenance, security, cleaning, and fit-out costs are included in the package. Flexible workspaces offer comprehensive packages that include already installed amenities and utilities, allowing you to focus solely on expanding your business.
- Future Growth: Will your team's size increase in the future? If so, consider a slightly larger office or an expandable coworking package. Office Hub partners with verified providers who offer scalable workspaces.
Ready to Expand Your Business in ADGM?
So, rounding up, “Does my business require physical office space in ADGM?” Yes, any business setting up in the Abu Dhabi Global Market must secure a real lease or dedicated workspace in ADGM Square (Al Maryah) or the new ADGM zone on Al Reem.
However, this doesn't mean a one-size-fits-all approach. As we've explored, your options range from a single desk in a vibrant coworking environment to renting a dedicated private workspace with varying costs.
Understanding your business needs, including your license type, team size, and budgetary constraints, is key to selecting the most suitable space.
But you don’t have to get into that overwhelming search process when Office Hub can do the work. We partner with trusted providers like Regus, WeWork, Cloud Spaces, and others, making it easy for entrepreneurs and enterprises to locate ADGM office spaces that perfectly match their needs and streamline the leasing process.
Ready to take the next step? Contact us today to find and rent the ideal location for your business's growth in Abu Dhabi’s global market square!
