Companies licensed by ADGM and primarily based at Al Reem Island will be capable to faucet 0 per cent company tax on their qualifying earnings.
“As ADGM, Al Maryah and Al Reem Islands shall be one of the vital enticing locations to reside and work throughout monetary centres worldwide,” stated Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Division of Financial Improvement and ADGM.
“International monetary establishments, household workplaces, entrepreneurs and main fintech expertise proceed to decide on ADGM as the placement from which they entry a deep pool of capital and a variety of funding alternatives which might be accessible in Abu Dhabi,” stated Al Zaabi.
The brand new decision expands ADGM’s jurisdiction as a ‘monetary free zone’ to Al Reem Island, which is true subsequent to its present base on Al Maryah Island. The choice follows elevated demand from a ‘vary of worldwide corporations selecting Abu Dhabi as a most popular vacation spot to increase and develop their companies globally’.
By being primarily based throughout the monetary free zone’s jurisdiction, a qualifying enterprise entity can profit from the preferential company tax price of 0 per cent on qualifying earnings.
“Combining our frequent regulation jurisdiction and pioneering regulatory framework throughout these two islands will unlock even higher financial alternatives,” stated Al Zaabi. “We look ahead to participating with all our strategic companions and stakeholders on how we are able to work collectively to understand this nice ambition.”
ADGM is working with key authorities stakeholders and different native authorities to ‘finalise the required transitional preparations’ that cowl the actions of all entities now working on Al Reem Island. It contains these engaged within the monetary companies business.
“The related ADGM authority will contact the Al Reem island neighborhood with the transition course of sooner or later,” stated the assertion.
ADGM has thus far 1,400 working entities, 5,500 enterprise licences and a workforce of 11,000 folks in ADGM Sq.. Final yr, ADGM had a ‘document’ enhance of 56 per cent in AUM (belongings below administration) and a 30 per cent enhance in energetic licences.
“Al Maryah Island is a thriving worldwide monetary centre, with occupancy already over 95 per cent and a robust pipeline of worldwide corporations desirous to increase or set up their footprint right here,” stated Al Zaabi.