ADGM Expansion to Al Reem Island: What It Means for Companies and Licence Holders

Al Reem Island used to sit outside the main jurisdiction of Abu Dhabi Global Market. That changed in 2023. UAE Cabinet Resolution No. 41 of 2023 expanded ADGM's geographic jurisdiction beyond Al Maryah Island to include Al Reem Island. The change took effect on 24 April 2023 and increased ADGM's total area to around 14.38 million square metres.

The ADGM Al Reem Island expansion was much more than a change to a map. Businesses on Al Reem had to move into a different licensing and regulatory framework. Employment rules changed. ADGM's company law, data protection requirements and commercial regulations became relevant. Property services were gradually transferred into ADGM's system too.

The transition period ended on 31 December 2024. So if you operate on Al Reem Island in 2026, this is no longer an upcoming change. It is the regulatory environment your business needs to work within.

What Is the ADGM Al Reem Island Expansion?

ADGM is Abu Dhabi's international financial centre and an independent jurisdiction with a legal framework based on the direct application of English common law.

Before April 2023, its geographic jurisdiction was primarily centred on Al Maryah Island. The Cabinet resolution brought Al Reem Island within the same international financial district.

The expanded district now covers around 14.38 million square metres. ADGM says the addition of Al Reem also brought roughly 500,000 square metres of additional office space into its jurisdiction.

For companies considering an Abu Dhabi base, that creates substantially more choice in offices, retail locations and commercial premises than the original Al Maryah footprint.

ADGM Al Reem Island Expansion Timeline

ADGM reported in February 2025 that more than 1,100 entities had been added to its jurisdiction following the integration, including newly established businesses and companies that migrated from the previous system.

What Does the Expansion Mean for Existing Al Reem Companies?

The biggest change is simple. An Al Reem address now places your business within ADGM's jurisdiction. During the transition, businesses holding Abu Dhabi Department of Economic Development licences were allowed time to move across. ADGM originally stated that existing ADDED licences would not remain valid for operating inside ADGM after 31 December 2024.

ADGM later confirmed that the transition had concluded, although it continued working with a limited number of remaining entities that still needed to complete the process.

For a business that still has unresolved licensing questions, relying on an old Al Reem ADDED licence without checking its present status would be risky.

If you are unfamiliar with how activity selection affects a UAE trade licence, Nexture's Commercial License UAE guide explains how licence activities, approvals and legal structures usually fit together.

Your Legal Framework May Be Different

Moving into ADGM jurisdiction changes more than the authority printed on your commercial licence.

ADGM operates its own companies legislation, commercial regulations and independent courts. English common law is directly applicable within the jurisdiction. ADGM Courts' jurisdiction was formally extended to Al Reem Island with effect from 24 April 2023. Criminal matters, however, are outside the jurisdiction of ADGM Courts.

That can affect how companies approach contracts, corporate governance, disputes and internal documents. Businesses that migrated through the continuation process could generally preserve the existing company's legal identity. ADGM's migration guidance stated that property, rights, contracts, debts, obligations and pending legal proceedings continued with the entity following continuation.

For existing licence holders, it is worth checking whether supplier contracts, employment agreements, bank records and client documentation now show the correct ADGM company information.

Employment Rules Have Changed Too

One of the most practical effects of the expansion concerns employees. ADGM has its own employment framework. The current Employment Regulations 2024 have applied since 1 April 2025, replacing the 2019 regulations. They cover matters such as employee rights, part-time employment, flexible and remote working arrangements, discrimination requirements and work permit obligations.

ADGM also requires relevant work permits. Temporary Work Permits can apply when an ADGM entity engages certain non-employees, including consultants, secondees and interns.

Employers on Al Reem should therefore avoid assuming that their old MOHRE-based procedures automatically remain suitable after moving into ADGM.

Data Protection and Beneficial Ownership Need Attention

An ADGM licence also carries ongoing compliance duties. Entities may need to maintain their Data Protection Register and keep the details of their Data Protection Contact Person accurate. ADGM issued a 2025 circular specifically reminding entities of these obligations.

Beneficial ownership records are another area to check. ADGM states that applicable entities must maintain current beneficial ownership information and report relevant changes to the Registrar within 15 days. Its beneficial ownership framework was amended again in 2026.

This makes post-licensing compliance important. Getting the licence is only the starting point.

What Are ADGM Licence Fees After the Al Reem Transition?

The temporary fee incentives used during the migration period have ended.

ADGM's published standard entity fee schedule currently lists the following totals:

These totals include the standard components shown in ADGM's fee schedule. Other expenses can still apply, including premises, lease registration, visas, establishment services, external approvals and regulated-activity costs. Check the current ADGM registration and licensing fee information before budgeting because fees and activity requirements can change.

Financial Companies Need More Than a Commercial Licence

There is an important distinction for banks, investment firms, brokers, asset managers, fintech businesses and other regulated financial companies. Being incorporated in ADGM and holding a Registration Authority commercial licence does not automatically authorise a company to provide regulated financial services.

A business conducting a regulated activity normally requires Financial Services Permission from ADGM's Financial Services Regulatory Authority, the FSRA. ADGM itself has repeatedly warned firms against representing themselves as financially regulated simply because they have an ADGM entity or commercial registration.

Tech founders should identify this distinction early. A software company and a fintech business handling regulated financial activity can face very different approval routes. Nexture's AI and tech startup licensing guide provides a wider comparison of UAE technology setup options.

What Changed for Property and Leasing on Al Reem?

The expansion also affects property administration. ADGM and Abu Dhabi's Department of Municipalities and Transport agreed to transfer real estate services within the expanded Al Reem jurisdiction to ADGM.

ADGM now operates real estate services across both Al Maryah and Al Reem through its regulatory framework and AccessRP platform. Services cover areas such as lease registration, ownership transfers, mortgages, development registration and property management.

ADGM reported that more than 70 real property services were introduced during 2025. For companies renting office or retail premises on Al Reem, your lease is therefore part of the wider ADGM compliance picture rather than something to treat separately from the commercial licence.

Does an ADGM Company Automatically Get 0% Corporate Tax?

No. ADGM is a UAE free zone, but simply holding an ADGM licence does not guarantee a 0% corporate tax rate on every dirham of income.

Under the federal corporate tax system, a Free Zone Person must meet the conditions required to qualify as a Qualifying Free Zone Person. The 0% rate applies to qualifying income where the statutory conditions are satisfied. Other taxable income can fall under the normal corporate tax rules.

This point is particularly important for Al Reem businesses that moved from an ordinary Abu Dhabi commercial licence and assumed that entering ADGM automatically changed their tax position.

Nexture's UAE Corporate Tax Guide explains the wider free zone and corporate tax rules.

What Should Licence Holders Check in 2026?

If your business operates from Al Reem, review these areas now:

1. Confirm that your current commercial licence is issued under the correct ADGM structure and covers the activities you actually conduct.

2. Check your office lease and property registration through the applicable ADGM process.

3. Review employment contracts, work permits and temporary work permits against the Employment Regulations 2024.

4. Update beneficial owner, shareholder, director and authorised signatory information when changes occur.

5. Keep your Data Protection Register and contact details current.

6. Confirm whether any activity requires outside government approval or FSRA authorisation.

7. Review annual accounts, confirmation statements and licence renewal deadlines.

8. Check your corporate tax position separately rather than assuming free zone status means automatic 0% taxation.

9. Update banks, customers, suppliers and insurers where company details changed during migration.

Setting Up a New Company on Al Reem Island

For new investors, Al Reem Island now offers a different proposition than it did before 2023.

You can locate a company within one of the world's larger international financial districts while having access to a broader supply of commercial and residential infrastructure than was available on Al Maryah alone.

Still, choose the activity before signing an office lease. Your activity determines your licence category, regulatory approvals and, in financial services, whether FSRA permission is required.

Nexture can help you compare ADGM with other UAE jurisdictions, identify the appropriate activity and structure and plan the complete licensing, visa, compliance and banking stages. 

Conclusion

The ADGM Al Reem Island expansion has permanently changed the business framework on Al Reem. The transitional phase is finished. Companies now operate within ADGM's licensing, company law, employment, data protection and real estate systems, with additional rules applying to regulated sectors.

For existing licence holders, the priority in 2026 is compliance after migration. Check your licence, employment documentation, ownership records, lease, tax treatment and regulatory approvals.

For new companies, the expansion provides far more space to establish within ADGM. The key is making sure the legal structure and activity fit what your business will actually do before you apply.

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