Abu Dhabi expands its International Financial District tenfold

Abu Dhabi is set to become one of the world’s largest International Financial Districts following the issuance of UAE Cabinet Resolution No. 41 for 2023 to expand the jurisdiction of Abu Dhabi Global Market (ADGM) the international financial centre of the capital city of the United Arab Emirates, as part of its economic vision, which lists its thriving financial sector as one of the key focus areas for its diversification strategy. It also underlines ADGM’s Growth Strategy 2023-2027, which aims to grow the financial sector of Abu Dhabi and position it as a leading global city with the sector becoming a key contributor to its GDP.

With the addition of Al Reem Island increasing the combined geographic area of ADGM to nearly 1438 hectares, the ADGM financial district will be ten times greater than its current footprint.

The resolution expands ADGM’s jurisdiction as a Financial Free Zone to Al Reem Island, adjacent to its current home of Al Maryah Island, following increased demand from a wide range of international companies choosing Abu Dhabi as a preferred destination to expand and grow their businesses globally. By being based within the financial free zone’s jurisdiction, a qualifying business entity can benefit from the preferential corporate tax rate of 0 per cent on their qualifying income.

ADGM and its authorities are currently working with key government stakeholders and other local authorities to finalise the necessary transitional arrangements that cover the activities of all entities presently operating on Al Reem Island, including those engaged in the financial services industry. The relevant ADGM authority will contact Al Reem island community with the transition process in due course.