Is Al Reem Island Part of ADGM? What Businesses Need to Know

Is Al Reem Island part of ADGM? Yes — Al Reem Island is part of Abu Dhabi Global Market (ADGM). Since the expansion took effect, businesses operating from Al Reem Island fall under ADGM's jurisdiction rather than the Abu Dhabi Department of Economic Development (ADDED), meaning ADGM's laws, licensing requirements, and courts apply there in exactly the same way they apply anywhere else within ADGM's jurisdiction.

That short answer covers the headline question, but it raises a few more practical ones for anyone setting up or already operating a business there: when did this happen, why did ADGM expand there, what actually changed, and does it apply to every building on the island? Here's what businesses need to know about the Al Reem Island ADGM jurisdiction.

When did Al Reem Island become part of ADGM?

The legal basis for the expansion is UAE Cabinet Resolution No. 41 of 2023, which extended ADGM's jurisdiction to include Al Reem Island. The rollout then happened in stages rather than overnight:

• New businesses setting up on Al Reem Island from 1 November 2023 onward were required to apply for ADGM commercial licences rather than ADDED licences.
• Businesses already operating on Al Reem Island under ADDED licences were given a transitional period, with 31 December 2024 set as the deadline to move to an ADGM licence — after which ADDED licences were no longer valid for operating within ADGM's jurisdiction.

By early 2025, ADGM confirmed the integration of Al Reem Island as substantially complete, adding roughly 500,000 square metres of office space and more than 1,100 entities to the jurisdiction. In practical terms, this means any business currently operating on Al Reem Island — including in Addax Tower — is expected to be ADGM-licensed today, not in transition.

Why did ADGM expand to Al Reem Island?

ADGM is a financial free zone — an international financial centre with its own laws and regulators, distinct from mainland Abu Dhabi. Before the expansion, that free zone was confined to a smaller footprint, which meant a limited supply of ADGM-eligible office space relative to demand from financial services, fintech, and professional-services firms wanting an ADGM presence.

Extending the Al Reem Island ADGM free zone boundary solved that constraint directly: it added a large stock of existing commercial buildings — office towers already built and occupied on Al Reem Island — into the jurisdiction, rather than requiring years of new construction within ADGM's original footprint alone. For businesses, that meant faster access to ADGM-compliant space at a wider range of price points, since Al Reem Island buildings were not originally built or priced as premium financial-centre real estate.

What actually changes for a business on Al Reem Island?

Falling under ADGM jurisdiction is more than a change of paperwork. It affects several things a business owner deals with directly:

Licensing authority

Company registration, licensing, and renewals go through ADGM's Registration Authority rather than ADDED. This is the single biggest operational change for businesses that previously held an Abu Dhabi mainland licence and are now based on Al Reem Island.

Governing law and courts

ADGM operates under English common law, with its own independent courts and dispute resolution framework — separate from the UAE's onshore civil law courts. Businesses on Al Reem Island now sit within that same common-law framework, which is one of the reasons international and financial-services firms find ADGM addresses attractive in the first place.

Physical presence and registered address

ADGM generally expects a registered entity to maintain a genuine physical presence within its jurisdiction, supported by a lease — and for that lease to be registered through ADGM's own systems rather than only signed with a landlord or workspace provider. Since Al Reem Island is now inside that jurisdiction, an office or desk there can satisfy this requirement in exactly the same way any other ADGM-registered address does.

Regulatory obligations

Once operating under an ADGM licence, a business also takes on ADGM's regulatory framework more broadly — data protection rules, AML/CFT obligations where applicable, and sector-specific regulation for financial or professional-services activities. These obligations follow the licence, not the building, so they apply equally wherever the registered address sits within ADGM's jurisdiction.

Does this apply to every building on Al Reem Island?

The expansion covers Al Reem Island as a designated geographic area within ADGM's jurisdiction, rather than selecting individual buildings on a case-by-case basis. Addax Tower — where Aegis Coworking is based — sits on Al Reem Island and operates within this jurisdiction; ADGM's own materials list Addax Tower among the recognised business locations on the island. For a specific address not covered here, the most reliable step is checking directly with ADGM or the building's operator, since jurisdiction boundaries and building-level detail can be confirmed authoritatively only by ADGM itself.

What to check before assuming ADGM status applies

Because the expansion happened in stages, it's worth confirming a few specifics rather than assuming ADGM status automatically covers everything:

• Licence type — confirm the entity holds an active ADGM commercial licence, not a legacy ADDED licence that may no longer be valid for operating within the jurisdiction.
• Lease registration — a workspace lease on Al Reem Island should be registered through ADGM's own systems to reliably support licence applications, renewals, and bank account opening, rather than relying on a signed agreement alone.
• Building coverage — while Al Reem Island as a whole sits within ADGM's jurisdiction, confirming that a specific building or address is recognised by ADGM avoids surprises during registration.

Why this matters for founders choosing where to base an ADGM entity

For a founder deciding where to base an ADGM-licensed business, the jurisdictional question is now largely settled — both islands sit inside the same legal and regulatory framework, so the choice comes down to practical factors instead: cost, availability, and proximity to the parts of Abu Dhabi a business actually needs to reach.

Al Reem Island tends to offer more competitive workspace pricing than ADGM's original core, while still sitting inside ADGM's jurisdiction and within reach of central Abu Dhabi. That combination — full ADGM standing at a more accessible price point — is a large part of why Al Reem Island has attracted a fast-growing share of ADGM's newer company registrations since the expansion.

For a services or holding entity that doesn't need daily desk space at all, the same jurisdictional logic applies to a virtual office arrangement on Al Reem Island — the registered address sits inside ADGM either way, whether the business shows up in person every day or maintains a lighter, address-only presence.

Frequently asked questions

Is a business address in Addax Tower a valid ADGM registered address?

Addax Tower sits within Al Reem Island's ADGM jurisdiction, so an address there can generally support ADGM company registration in exactly the same way any other ADGM-registered address does — subject to the same lease and registration requirements ADGM applies across the jurisdiction. Confirm the specific requirements for your licence category directly with ADGM or your registered agent.

Do businesses on Al Reem Island still need an ADGM licence if they already hold an ADDED licence?

The transition deadline for existing ADDED-licensed businesses on Al Reem Island was 31 December 2024. Businesses operating there now are expected to hold a valid ADGM licence rather than an ADDED one.

Does Al Reem Island have full ADGM status, or a reduced version?

No — Al Reem Island falls fully under ADGM's jurisdiction, laws, and courts, with no reduced or different regulatory status. A business doesn't get a "lesser" version of ADGM status by being based there.

What UAE Cabinet Resolution covers this expansion?

UAE Cabinet Resolution No. 41 of 2023 is the legal instrument that extended ADGM's jurisdiction to include Al Reem Island.

The short version

Al Reem Island has been part of ADGM's jurisdiction since the expansion took effect under Cabinet Resolution No. 41 of 2023, with the transition period for existing businesses closing on 31 December 2024. Businesses there operate under ADGM licensing, courts, and regulation — not ADDED — in exactly the same way as any other ADGM-registered business.

Aegis Coworking operates as a coworking space in ADGM from Addax Tower on Al Reem Island, offering desk and office options that support ADGM registration for businesses based on the island. If you're weighing where to base an ADGM entity, get in touch to talk through what an Al Reem Island address involves in practice, or see current pricing.