The Abu Dhabi Global Market (ADGM) Registration Authority has announced a significant enhancement to its regulatory framework, publishing new rules that raise the governance and operational standards for legal, tax, and company service providers operating within the international financial centre. The move is designed to further strengthen ADGM’s position as a leading and trusted business hub.
Strengthening the Regulatory Framework
The new regulations, cited as the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025 and the Commercial Licensing Regulations (Controlled Activities) Rules 2025, repeal the existing framework. They introduce a more robust set of requirements aimed at increasing transparency and professionalism.
Key enhancements include the introduction of a new controlled activity specifically for tax services, the establishment of more rigorous application requirements for legal and tax service providers, and the implementation of enhanced governance standards for licensed company service providers through mandatory conflicts of interest policies.
Key Updates for Service Providers
The updated framework outlines specific new conditions for professional service providers looking to operate or continue operating within ADGM:
- Legal Service Providers: Applicants must now appoint a managing partner or equivalent with a minimum of eight years of post-qualification experience. Licensed firms are also required to maintain a registered office in ADGM, secure professional indemnity insurance, and submit an annual return to the Registration Authority.
- Tax Service Providers: New applicants must ensure that at least half of their senior management are suitably qualified professionals. Additionally, obtaining and maintaining professional indemnity insurance is now a mandatory condition of their licence.
- Company Service Providers: To enhance corporate governance, licensed entities in this sector are now required to implement and maintain formal policies and procedures to effectively manage any potential conflicts of interest.
The new rules are effective immediately for all new applicants. For existing licence holders, ADGM has established transitional timelines to provide sufficient time to align their operations with the updated requirements.
About ADGM
ADGM, which opened on 21 October 2015, is the international financial centre (IFC) of the capital city of the United Arab Emirates. ADGM is contributing significantly to Abu Dhabi’s position as a leading financial centre and a business hub, serving as a strategic link between the growing economies of the Middle East, Africa, South Asia, and the rest of the world. Operating within a regulatory framework based on the direct application of English Common Law, ADGM governs the entirety of Al Maryah Island and Al Reem Island, collectively designated as the financial free zone of Abu Dhabi.
Source: Zawya
