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ADGM Takes Over Al Reem Island: What Property Owners Need to Know in 2025
Starting 2025, Al Reem Island in Abu Dhabi will officially come under the jurisdiction of the Abu Dhabi Global Market (ADGM). This change brings a new set of rules and processes for property owners, especially when it comes to leasing, selling, and managing properties. If you own property on Al Reem Island, this blog will guide you through the key changes and what you need to do to stay compliant.
What’s Changing for Property Owners?
ADGM operates under its own legal framework, which is different from the Abu Dhabi Municipality (ADM). This means property owners will need to adapt to new systems and processes. Here’s a breakdown of the most important updates:
1. Title Deed Updates
All property owners must update their title deeds through the AccessRP system, ADGM’s digital platform for property-related matters. You’ll need a UAE Pass to access the system. If you’re a non-resident owner, ADGM is working on enabling functionality for you, so stay tuned for updates.
2. Leasing Under ADGM
If you’re renting out your property, there are a few key changes to note:
- Tenancy Registration: Starting in 2025, all new or renewed leases must be registered through the AccessRP system.
- 5% Authority Fee: A new 5% fee (similar to ADM’s municipality fee) will apply to tenancy contracts. Landlords and tenants can negotiate how this fee is paid—either in monthly installments or as a lump sum.
- Security Deposits: While the standard security deposit is 5%, landlords and tenants can agree on a higher amount if needed.
- Lease Renewals: Landlords must give tenants a 60-day notice before renewing a lease. Rent increases are capped at 5%, but it’s a good idea to start the renewal process at least 90 days before the lease expires to avoid delays.
- Unresponsive Tenants: ADGM is working on protocols to handle situations where tenants don’t respond after their lease expires.
3. Selling Your Property
If you’re planning to sell your property, the process is now fully digital:
- Digital Sales Process: Sales transfers are done entirely through AccessRP. The fees include 2% of the property value plus an AED 1,000 electronic fee. Once approved, you’ll receive a payment link to complete the transaction online.
- Documentation: You’ll need a valuation certificate (AED 1,092, including VAT) and unit verification. These services will soon be available through ADGM.
- Power of Attorney (POA): If you’re using a POA for the sale, it must be registered in the ADGM system. Unregistered POAs will need to be processed manually at the ADGM Service Center in Galleria Mall.
4. Off-Plan Sales and Property Gifting
- Off-Plan Sales: Developers will register off-plan purchasers directly in the AccessRP system.
- Property Gifting: Procedures for gifting properties are still under review. Additionally, it’s unclear whether properties under ADM and ADGM can be combined to meet the AED 2 million threshold for Golden Visa eligibility. More details are expected soon.
5. Managing Tenants
- Simplified Tenant Registration: Tenants with a UAE Pass will be automatically registered in the system. Non-EID holders can use their Unified Number and passport.
- Transition from Tawtheeq: If you have existing Tawtheeq contracts issued before January 1, 2025, they will remain valid. However, you can choose to transition to the AccessRP system if you prefer.
- Occupant Registration: Adding occupants during tenancy registration is optional and can be updated later.
What Does This Mean for Non-Resident Landlords?
If you’re a non-resident landlord, navigating the new system might feel overwhelming. ADGM is working on solutions to support you, but in the meantime, it’s a good idea to:
- Activate your Power of Attorney (POA) in the ADGM system for lease registrations.
- Stay updated on new developments, especially regarding non-resident owner accounts.
ADGM’s Expansion: A Big Win for Al Reem Island
ADGM’s integration of Al Reem Island is a major milestone. The expansion adds over 1,100 new entities to ADGM’s jurisdiction, including 600 new businesses and 500 companies that migrated from Al Reem Island. This move strengthens ADGM’s position as one of the world’s largest international financial centers.
To ensure a smooth transition, ADGM has collaborated with key stakeholders like the Central Bank of the UAE, Abu Dhabi Municipality, and the Ministry of Human Resources and Emiratisation. They’ve also introduced flexible measures, such as dual licensing and reduced fees for commercial licenses, making it easier for businesses to operate under ADGM’s jurisdiction.
Ideal for Homebuyers and Investors
Whether you’re buying a property to live in or as an investment, Ramadan offers benefits for both types of buyers.
1. For Homebuyers: Lower property prices and relaxed buying conditions make it easier to secure your dream home. Families can take advantage of the discounts and flexible payment plans to move into a new home without breaking the bank.
2. For Investors: Ramadan promotions increase the potential for higher returns in the future. With discounted rates and developer incentives, you can purchase properties at a lower cost and benefit from capital appreciation over time. Additionally, the post-Ramadan period often sees an increase in rental demand as expatriates and new residents move to Abu Dhabi, making it a great time to invest in rental properties.
ADGM’s Expansion: A Major Milestone
ADGM’s expansion into Al Reem Island is a huge step towards making Abu Dhabi a world-class financial hub. With this integration:
- Over 1,100 businesses now operate under ADGM’s jurisdiction.
- Al Reem Island now adds 500,000 sqm of office space to ADGM’s business district.
- ADGM’s financial district now spans 14.38 million square meters.
To support businesses and residents, ADGM has:
- Signed 15 agreements with key stakeholders to smooth the transition.
- Reduced commercial license fees by 50% or more for non-financial and retail businesses.
- Worked closely with major government entities, including:
- Central Bank of the UAE (CBUAE)
- Ministry of Human Resources and Emiratisation (MoHRE)
- Abu Dhabi City Municipality (ADM)
ADGM’s Collaborative Efforts and Support for Businesses During the Transition
As part of the integration of Al Reem Island into ADGM’s jurisdiction, the Abu Dhabi Global Market has worked closely with key stakeholders to ensure a smooth and seamless transition for businesses. One of the most significant collaborations has been with ADNOC (Abu Dhabi National Oil Company), focusing on helping migrating entities retain their existing registrations through ADDED’s dual licensing system. This means businesses can continue operating without disruption while transitioning to ADGM’s jurisdiction.
Here’s how ADGM is supporting businesses during this transition:
1. Dual Licensing and Security Passes
- Dual Licensing: Through its collaboration with ADNOC and ADDED (Abu Dhabi Department of Economic Development), ADGM has enabled businesses to retain their existing registrations. This dual licensing system ensures that companies can operate under ADGM’s jurisdiction while maintaining their ties with mainland authorities.
- Security Passes: ADGM has also facilitated the renewal and issuance of Security Passes, which are permits issued by the National Guard. These passes are essential for businesses working on secure sites and critical infrastructure in Abu Dhabi. By ensuring these passes remain valid, ADGM has minimized disruptions for businesses during the transition.
2. Support for Law Firms
ADGM has also extended its support to law firms operating within its jurisdiction. Law firms have been granted permission to continue registering lawyers with the Ministry of Justice and practicing within the Abu Dhabi Judicial Department under ADDED’s dual licensing system. This ensures that legal professionals can continue their work without interruption, further strengthening ADGM’s ecosystem.
3. Proactive Engagement with Stakeholders
ADGM has gone above and beyond to ensure a smooth transition for all affected entities. Here’s how they’ve done it:
- 200+ Client Meetings: ADGM held over 200 meetings with clients to address their concerns and provide guidance on the transition process.
- 500+ Site Visits: The team conducted more than 500 site visits to understand the specific needs of businesses and offer tailored support.
- 300+ Client Queries: ADGM addressed over 300 client queries, ensuring that businesses had all the information they needed to make the transition seamlessly.
These proactive efforts reflect ADGM’s commitment to supporting businesses and ensuring minimal disruption during this significant change.
4. Reduced Fees for Commercial Licenses
To make the transition even more attractive, ADGM has introduced an updated fee schedule, effective from January 1, 2025. This new schedule reduces fees for obtaining and renewing commercial licenses for non-financial and retail businesses operating within its jurisdiction. In many cases, these fees have been cut by 50% or more, making it more cost-effective for businesses to operate under ADGM’s framework.
5. Ongoing Support for Remaining Entities
While the majority of businesses have successfully transitioned to ADGM’s jurisdiction, the organization continues to work actively with the remaining entities. ADGM is ensuring that these businesses align with its regulations and that their operations continue without disruption. This ongoing support highlights ADGM’s dedication to creating a business-friendly environment and fostering growth within its jurisdiction.
Why This Matters
ADGM’s collaborative efforts and proactive approach have been instrumental in ensuring a smooth transition for businesses on Al Reem Island. By working closely with stakeholders like ADNOC, ADDED, and the Ministry of Justice, ADGM has created a supportive ecosystem that minimizes disruptions and maximizes opportunities for businesses.
The introduction of reduced fees and dual licensing further enhances ADGM’s appeal as a world-class financial hub. For businesses, this means lower costs, greater flexibility, and access to a robust regulatory framework that supports growth and innovation.
The transition to ADGM’s jurisdiction is a significant change for property owners on Al Reem Island. While the new system is still evolving, staying informed and proactive will help you adapt smoothly. Keep an eye on updates from ADGM, especially if you’re a non-resident landlord or planning to sell or lease your property.
ADGM’s expansion is not just a regulatory change—it’s a step toward creating a world-class financial and residential hub. By embracing these changes, property owners can benefit from a more streamlined and efficient system in the long run.
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