The Abu Dhabi Global Market (ADGM), one of the leading international financial centres, has announced its plans for significant expansion. The announcement is likely to excite foreign investors actively exploring opportunities for company formation in ADGM. Since its inception in 2015, ADGM has been playing a vital role in promoting Abu Dhabi’s economic growth and diversification. Foreign investors register their companies in ADGM as it allows them to carry out a wide range of regulated and non-regulated activities such as banking, Fintech, trusts, foundations, and other special-purpose vehicles (SPV).
The free zone also offers unparalleled facilities, robust infrastructure, 100% foreign ownership and all the services under a roof which are solid reasons to set up a company in ADGM. In May 2023, ADGM announced its latest expansion plans, which include several key initiatives aimed at further strengthening its position as a global financial hub.
If this sounds exciting to you, business setup consultants in Abu Dhabi can help you with the incorporation process. In this blog, we will discuss some of the key things you must know about ADGM’s latest expansion plans.
Expansion of ADGM in a Nutshell
The government issued the UAE Cabinet Resolution No. 41 for 2023 approving the expansion of the free zone. The resolution expands ADGM’s jurisdiction as a Financial Free Zone to Al Reem Island, adjacent to its current home of Al Maryah Island. With the addition of Al Reem Island increasing the combined geographic area of ADGM to nearly 1438 hectares (~14377774.9 sqm), the ADGM financial district will be ten times greater than its current footprint.
Expansion of Digital Lab
ADGM has recently announced expansion plans for its digital lab, which is aimed at promoting innovation and digital transformation in the financial services sector. The lab will provide a platform for Fintech companies, financial institutions, and technology firms to collaborate and develop new digital solutions to enhance the financial sector’s efficiency and effectiveness. The lab will also offer a range of support services to help these firms overcome any regulatory or technical challenges they may face.
Expansion of Arbitration Centre
ADGM has also announced plans to expand its arbitration centre to cater to the growing demand for dispute resolution services in the region. The expansion will include the addition of new hearing rooms, a larger case management team, and an enhanced online case management system. The ADGM Arbitration Centre is already a leading dispute resolution centre in the region, and this expansion will further enhance its capabilities.
Focus on Sustainable Finance
ADGM has also announced its plans to increase its focus on sustainable finance, which has become an increasingly important area in the financial services sector. The initiative will focus on promoting sustainable investment and financing solutions that take into account environmental, social, and governance (ESG) factors. ADGM will work closely with financial institutions and other stakeholders to develop and promote sustainable finance solutions.
Establishment of ADGM Academy
ADGM has also announced plans to expand the ADGM Academy, which will provide a range of educational and training programs to support the development of the financial services sector. The academy will offer courses and certifications in areas such as Fintech, sustainable finance, and arbitration, among others. The academy will also work closely with academic institutions and industry partners to develop customized training programs to meet the specific needs of the financial services sector.
Expansion of the ADGM RegLab
Finally, ADGM has announced plans to expand its regulatory sandbox, the ADGM RegLab, which allows Fintech companies to test innovative financial products and services in a controlled environment. The expansion will include the addition of new sectors and products, as well as the enhancement of RegLab’s regulatory framework to ensure that it remains at the forefront of regulatory innovation.
Hire Best Business Setup Experts in Abu Dhabi
In conclusion, ADGM’s latest expansion plans are aimed at further strengthening its position as a global financial hub by promoting innovation, sustainability, and regulatory excellence. These initiatives will not only benefit the financial services sector but also contribute to Abu Dhabi’s economic growth and diversification. If you wish to set up a company ADGM, you can consult with Jitendra Business Consultants (JBC).
JBC is one of the leading company formation consultants in the UAE with years of experience and unparalleled expertise. We have a team of highly qualified consultants who can advise you on major requirements such as document drafting, visa processing, and bank account opening. Our consultants are highly qualified and well-versed in UAE immigration law and labour laws. JBC’s company setup consultants in Abu Dhabi can also assist you to meet the mandatory regulatory requirements related to AML-CFT, Economic Substance Regulations (ESR) and Ultimate Beneficial Ownership (UBO).