Abu Dhabi Global Market (ADGM) is an international financial free zone located on Al Maryah Island in Abu Dhabi. Established by Federal Decree in 2013 and operational since 2015, ADGM operates as a comprehensive financial centre with its own civil and commercial legal framework based on English common law.
Legal Framework
ADGM is unique in the Gulf region for adopting English common law as its directly applicable legal system. The free zone has its own courts — ADGM Courts — staffed by international judges and applying English common law principles. This structure provides foreign investors and financial institutions with a legal environment familiar to major international financial centres. ADGM also operates its own arbitration centre.
Regulatory Structure
ADGM comprises three independent authorities. The Registration Authority handles entity formation and licensing. The Financial Services Regulatory Authority (FSRA) regulates financial services firms, applying standards aligned with international best practice. The ADGM Courts provide the judicial framework. This three-authority model mirrors the structure of leading international financial centres.
Scope of Activities
ADGM hosts a range of financial and non-financial activities including asset management, banking, insurance, capital markets, private equity, fintech, and professional services. The free zone permits 100 percent foreign ownership, imposes no restrictions on capital repatriation, and levies zero percent tax on corporate income (though entities remain subject to the UAE’s federal corporate tax introduced in 2023 for income exceeding AED 375,000).
Growth
Since its establishment, ADGM has registered several thousand entities. Growth accelerated significantly from 2020 onward as Abu Dhabi intensified its positioning as a global financial centre. ADGM competes primarily with the Dubai International Financial Centre (DIFC) within the UAE, and with Bahrain’s regulatory framework in the broader Gulf context.
Role in Vision 2030
ADGM directly supports the Abu Dhabi Economic Vision 2030’s objective of developing a world-class financial services sector. The vision identifies financial services as a priority non-oil sector and calls for regulatory infrastructure that attracts international capital and institutions. ADGM provides the legal, regulatory, and institutional platform for this ambition, offering a jurisdiction that international financial firms recognise and trust.