Al Reem Expansion

Al Reem Island was governed by UAE federal and Abu Dhabi laws. From 24 April 2023 when the Cabinet Resolution No. (41) of 2023 was issued expanding the jurisdiction of ADGM to Al Reem Island, ADGM’s legal and regulatory frameworks became applicable in Al Reem Island. However, ADGM Board has approved a transitional period, ending 31 December 2024, to allow all businesses on Al Reem Island to meet the relevant requirements of ADGM’s legal and regulatory framework by the end of the transitional period.

All businesses on Al Reem Island will be governed by ADGM.

ADGM’s framework will not be ‘optional’. At the end of the transition period, ADGM’s regulatory framework will apply fully to businesses located on Al Reem Island. By the end of the transition period, an existing Al Reem business will need to decide either to replace its ADDED licence with an ADGM licence or to register a new business and obtain a new licence. Given that ADGM has other types of legal entities as compared with onshore, a business converting its ADDED licence to ADGM licence (without registering a new business) may also need to change its legal form. ADGM guidance on this will be issued in due course and can be requested as appropriate.

ADGM is currently working with mainland authorities and regulators to facilitate a smooth and seamless transition of existing Al Reem Island businesses and residential settings to ADGM's jurisdiction. ADGM has set a transitional period ending 31 December 2024. Additionally, ADGM is setting up an ADGM information kiosk on Al Reem Island, an ADGM Business Centre on Al Reem Island, conducting awareness sessions for general public and business, launching a dedicated web portal and providing on-going support from ADGM.

• Direct application of English Common Law which is internationally recognised, most commonly used, and renowned for being transparent and predictable, providing freedom of contract with a pro-business approach
• Progressive regulations
• Range of services provided from in-house single business platform for licence registration to immigration services, business support and services
• Digital registration
• ADGM ecosystem that gives access to 1600 operational businesses, access to ADGM's networking and high-profile business events such as Abu Dhabi Finance Week, access to asset managers, global funds, financial institutions, leading advisors, law firms, capital providers, tech and digital companies, family offices etc.
• All other benefits the region offers – Access to capital, market, affordable yet quality infrastructure etc.

Although the change to ADGM’s geographical jurisdiction took effect from 24 April 2023, businesses and real estate on Al Reem Island can continue for now to operate and carry on business as before. However, you will need to obtain an ADGM licence before the end of 31 December 2024 to be able to continue your business activities in Al Reem Island after that date.

Yes, following UAE Cabinet Resolution No. 41 of 2023, which extended ADGM's jurisdiction to include Al Reem Island, all entities must obtain an ADGM commercial licence no later than 31 December 2024 to be able to operate in or from Al Reem Island. Section 1 of the ADGM Commercial Licensing Regulations 2015 prohibits conducting business or economic activities in or from ADGM without commercial license issued by ADGM Registration Authority, unless exempt.

You cannot conduct any business activity in ADGM without a valid ADGM commercial licence or an ADGM permit. Financial services activities need additional authorisation.

• For detailed guidance on the migration process, please refer to our Guidance Notes and other materials on Al Reem Expansion page
• In addition, you can receive step by step guidance through Company Service Providers (CSPs) and Tasheel centres that are listed on our website and in the Guidance Notes
• For additional inquiries, please contact our Customer Relationship Management (CR&M) team at alreem@adgm.com

ADGM has its own list of permitted activities, and these may closely link to your existing DED activities. Please refer to Permitted Business Activities to view an indicative one-to-one mapping of ADGM activities against DED activities. Please note these are subject to applicable regulatory conditions.

Certain business activities are controlled activities, as prescribed in the ADGM Commercial Licensing Regulations (Controlled Activities) Rules. These activities are subject to specific conditions of license. Please read these rules available here ADGM Commercial Licensing Regulations (Controlled Activities) Rules 2022 and Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2023. We note that, if any other permits or licences (in addition to ADDED licences) are required to be obtained or maintained by the relevant businesses under applicable law (including licences from federal or Abu Dhabi authorities which may be necessary to engage into certain types of activities under federal or Abu Dhabi laws), these permits or licences need to be obtained or amended/renewed by businesses, as appropriate, with the relevant authorities. ADGM commercial licence does not substitute any such licences and requirements continue to apply. Further guidance on these matters will be published and can be requested as appropriate.

An ADGM commercial licence allows you to conduct activities in or from ADGM’s jurisdiction (Al Maryah and Al Reem islands). To conduct business activities on mainland as an ADGM entity, you may have to obtain a dual licence with ADDED. Moreover, you may need to maintain or obtain relevant approvals from mainland authorities, depending on the scope of your activities and existing licences. If you are unsure of any additional approvals required, we advise that you seek legal advice.

Pursuant to ADGM Law (Law No. 4 of 2013, as amended) and subject to certain conditions, new and existing ADGM registered legal entities can benefit from the dual licensing arrangement by applying to the DED for an onshore licence without having to have a separate physical office outside ADGM. Some businesses may be required to obtain further licences or permits (apart from the DED licence) from other authorities, depending on the scope of activities.

ADGM has defined categories of sectors for charging commercial licensing fees. The commercial licence fee is provided in the schedule of fees.

Non-financial businesses, including retail business operating in Al Reem Island may benefit from an incentive program when transitioning to ADGM. If the existing Al Reem business migrates to ADGM commercial licence either through new registration or continuation before 31 October 2024, the fee for obtaining a one-year ADGM commercial licence is $0 (please read the Guidance Note for more information).

No. ADGM maintains a different commercial licensing regime to mainland and therefore you will be issued a new ADGM licence number.

ADGM regulates employment affairs through its own employment legal framework, which can be found at Employment Regulations 2019.

ADGM does not have a WPS requirement. ADGM employment regulations set out specific rules on protection of wages.

• Once you have transitioned to ADGM through the continuation process, all existing employee visas registered under your ADDED licensed entity will remain valid until their respective expiry dates without any additional cost. Upon expiry, these visas are subject to renewal under the ADGM Registration Authority
• To read more about the continuation process, including visas, and obtain links to our forms, please access our Guidance Note

ADGM has a comprehensive set of information regarding sponsoring employees, available at Corporate Relations – Government Services page.

Individuals employed by businesses registered in ADGM, are required to have an employment contract aligned with ADGM Employment Regulations 2019. Please refer to Standard Employment Contract and Work Permit Guidance.

Yes, please click on ADGM template to access a standard template for ADGM employment contracts subject to ADGM employment regulations.

When transitioning your employees to ADGM, you will need to draft new employment contracts that comply with ADGM employment regulations. Regarding the end-of-service gratuity, when you continue your business into ADGM, MoHRE will require you to give an undertaking that an agreement is in place between your business and employees to recognise the EOSB Entitlement Value, and continue their employment with the new ADGM Employment Contract through the ADGM Licensed Company.

ADGM has its own Employment Regulations, hence the MoHRE regulations do not apply in ADGM.

Once you have obtained the ADGM commercial licence, you will no longer be required to obtain MoHRE work permits for your employees registered under the ADGM entity. The process of obtaining work permits will be conducted through ADGM.

Yes, but for a duration of 30 days or more, an individual is required to obtain a temporary work permit from ADGM under The ADGM Employment Regulations Engaging Non-Employees Rules 2023. Temporary work permits can be issued for validity periods of 3, 6 or 12 months (renewable).

ADGM can provide general guidance only in relation to relevant tax legislation and is not in a position to give any tax or legal advice on your circumstances. UAE tax legislation is administered by the UAE Federal Tax Authority, you may wish to consider consulting a tax professional.

ADGM can provide general guidance only in relation to relevant tax legislation and is not in a position to give any tax or legal advice on your circumstances. UAE tax legislation is administered by the UAE Federal Tax Authority, you may wish to consider consulting a tax professional.

Yes, Al Reem Island addresses, approved for commercial use, are eligible as part of a new licence application submitted to ADGM. If the business at an Al Reem address has an existing ADDED licence, the business may decide to convert to ADGM licence (instead of registering a new business and obtaining a new licence). This needs to be completed by 31 December 2024.

ADGM permits multiple commercial licences under one office address, subject to the following conditions:

• An NoC is obtained from the landlord to allow sub-leasing; and
• Sub-leases are signed between the entity holding the head-lease and the entity requesting the sub-lease.

For financial entities, in addition to the above, you need to seek permission from the Financial Services Regulatory Authority (FSRA) of ADGM.

No. ADGM does not permit multiple office locations under one commercial licence.

Processing and registration of all residential tenancies including the processing of other services related to real estate will continue without change and with the relevant government authority until further notice.

Reach out to Abu Dhabi Department of Municipalities and Transport for all such services until further notice.

ADGM does not provide assistance in finding tenants for vacant office spaces. It is recommended to seek support from licensed real estate brokers and/or verified brokerage websites for this service.

ADGM Courts jurisdiction is found in Articles 13(7) and (8) of Abu Dhabi Law No. 12 of 2020. Article 13(7) provides that ADGM Courts has exclusive jurisdiction to consider and decide on:

• Civil or commercial claims and disputes involving ADGM, an ADGM authority or an ADGM licensed entity.
• Civil or commercial claims and disputes arising out of:
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

Cabinet Resolution No. 41 of 2023 expanded the geographical territory of ADGM to include Al Reem Island with immediate effect from 24 April 2023..

This means ADGM Courts now has exclusive jurisdiction to consider and decide on the matters set out in Article 13(7) of Abu Dhabi Law No. 12 of 2020 (see question 1 above) in relation to both Al Maryah and Al Reem Islands.

Yes. In accordance with Article 13(9) of Abu Dhabi Law No. 12 of 2020, parties may agree to refer their claims or disputes to arbitration or may agree to refer their civil or commercial claims and disputes to the jurisdiction of any other court other than ADGM Courts.

If you have a dispute, you should refer to the jurisdiction clause in your contract in relation to the place for filing any claim. For example:

• If you have a dispute with your employer, you should refer to your employment contract; or
• If you have a dispute with your landlord, you should refer to your tenancy contract.

If you have done this and are still unsure where to file your claim, you should consult with a lawyer.

In NMC Healthcare Ltd and Associated Companies [2022] ADGMCFI 0003 (04 April 2022), it was held that “the expression “the Courts of Abu Dhabi” include the Courts of ADGM, which are Courts of the Emirate”.

In this situation, you should refer to Article 13(7) of Abu Dhabi Law No. 12 of 2020 which provides that ADGM Courts has exclusive jurisdiction in relation to civil or commercial claims and disputes that relate to:

• ADGM, an ADGM authority or an ADGM licensed entity;
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

Cabinet Resolution No. 41 of 2023 does not contain any transitional provisions. You should refer to Article 13(7) of Abu Dhabi Law No. 12 of 2020 which provides that ADGM Courts has exclusive jurisdiction in relation to civil or commercial claims and disputes that relate to:

• ADGM, an ADGM authority or an ADGM licensed entity;
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

You may also wish to note that Abu Dhabi Judicial Department has declined to accept jurisdiction in certain cases involving Al Reem parties that have come before it since Cabinet Resolution No. 41 of 2023 came into effect, irrespective of when the cause of action arose.

You should refer to your employment contract to see if there is any jurisdiction clause that applies. If your employment contract is registered with the Ministry of Human Resources & Emiratisation (MoHRE), the dispute resolution provisions contained in Federal Decree Law No. 33 of 2021 will apply which requires any individual employment dispute to be submitted to MoHRE.

If there is no jurisdiction clause in your employment contract, or if your employment contract is not registered with MoHRE, you should refer to Article 13(7) of Abu Dhabi Law No. 12 of 2020 which provides that ADGM Courts has exclusive jurisdiction in relation to civil or commercial claims and disputes that relate to:

• ADGM, an ADGM authority or an ADGM licensed entity;
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

If you are still unsure where to bring your claim, you should consult with a lawyer.

You should refer to your tenancy contract to see if there is any jurisdiction clause that applies. If your tenancy contract is registered with the Department of Municipalities and Transport (DMT), any tenancy claim should be referred to the Rental Dispute Settlement Committee in Abu Dhabi.

If there is no jurisdiction clause in your tenancy contract, or if your tenancy contract is not registered with DMT, you should refer to Article 13(7) of Abu Dhabi Law No. 12 of 2020 which provides that ADGM Courts has exclusive jurisdiction if the claim or dispute relates to:

• ADGM, an ADGM authority or an ADGM licensed entity;
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

If you are still unsure where to bring your claim, you should consult with a lawyer.

You should refer to your mortgage contract to see if there is any jurisdiction clause that applies. If you have done so and you are still unsure where to bring your claim, you should consult with a lawyer.

If there is no jurisdiction clause in your mortgage contract, you should refer to Article 13(7) of Abu Dhabi Law No. 12 of 2020 which provides that ADGM Courts has exclusive jurisdiction if the claim or dispute relates to:

• ADGM, an ADGM authority or an ADGM licensed entity;
• a contract entered into, executed or performed in whole or in part in ADGM;
• a transaction entered into or performed in whole or in part in ADGM; or
• an incident that occurred in whole or in part in ADGM.

If you are still unsure where to bring your claim, you should consult with a lawyer.

If you cannot afford legal advice, you may be eligible to receive pro bono legal assistance (i.e., at no cost) from the ADGM Courts Pro Bono Scheme.

The Scheme provides legal assistance to individuals with limited financial means at no cost to help them understand their rights and obligations in regard to a dispute or any other legal issue that falls within the jurisdiction of ADGM Courts. Pro bono legal assistance is provided by legal volunteers who provide their time and expertise to assist such individuals.

ADGM Courts Pro Bono Scheme Guidelines set out the criteria for eligibility to receive pro bono legal assistance and how to apply for such assistance. The Guidelines can be found here.

If you wish to apply for pro bono legal assistance, you must complete and sign the Application for Pro Bono Legal Assistance here and submit it via the ADGM eCourts Platform. A guide for how to submit the application on the eCourts Platform is available here.

If you encounter any difficulties with the application process, please contact probono@adgmcourts.com and a representative from the Scheme will assist you with the application process.

ADGM Courts is fully digital. You must first register on the ADGM eCourts Platform. There is no fee to register. A guide for registration is available here. If you encounter any difficulties with the registration process, please contact registry@adgmcourts.com and a representative from the Court Registry will assist you.

You should start your case in the:

• Small Claims Division if the value of your claim is USD 100,000 or less and it does not relate to an employment matter. To start your case, you must complete the claim form using Form CFI 2.
• Employment Division if your claim is made under the ADGM Employment Regulations 2019 or if it relates to any other employment matter that falls within the jurisdiction of the Court. To start your case, you must complete the claim form using Form CFI 3.
• Commercial and Civil Division if the value of your claim exceeds USD 100,000 and it does not relate to an employment matter. To start your case, you must complete the claim form using Form CFI 1 (or Form CFI 6 if your claim is unlikely to involve a substantial dispute of fact).

The Court’s forms can be found here. Before commencing your case, you should refer to:

• Practice Direction 3 for claims in the Small Claims Division;
• Practice Direction 4 for employment claims; or
• Practice Direction 2 for claims in the Commercial and Civil Division.

The Court Registry cannot provide legal advice or assist a party with completing a form. If you require any assistance with completing the claim form you should consult with a lawyer. If you cannot afford a lawyer, please see question 11 above.

All claims must be submitted for filing on the ADGM eCourts Platform. A guide for filing a claim on the eCourts Platform is available here. If you encounter any difficulties, please contact registry@adgmcourts.com and a representative from the Court Registry will assist you.

When you submit your claim, you will be required to pay a filing fee. The ADGM Courts Schedule of Fees can be found here. If you cannot afford to pay the filing fee, you can apply for a waiver or deferral of payment. The Court Registry will decide whether to waive or defer payment of the filing fee.

The ‘Guidelines on Remission and Deferral of Court Fees’ and the application form can be found here. Completed application forms should be sent to the Court Registry at registry@adgmcourts.com.

ADGM Courts provides a free court-annexed mediation service. Under this scheme, an internationally accredited mediator is provided to the parties at no cost to assist them with resolving their dispute. If you wish to refer a dispute to mediation, the process is as follows:

• Parties must complete and sign a ‘Request for Mediation’ which can be found here;
• The ‘Request for Mediation’ must be sent by email to the Court Registry at registry@adgmcourts.com; and
• If the request is approved, the Registrar of the Court will appoint a mediator as soon as practicable.

Information on the court-annexed mediation scheme is set out in Part 36 of the ADGM Court Procedure Rules 2016 and Practice Direction 13.

All information concerning ADGM Courts is available on the Court’s website. Any queries should be sent in writing to registry@adgmcourts.com.