Abu Dhabi Global Market (ADGM) has introduced a new regulatory framework setting higher professional, licensing, and governance standards for firms offering legal, tax, and company services within the financial free zone.
A New Era of Professional Oversight
The ADGM Registration Authority announced the measures under two updated frameworks — the Commercial Licensing Regulations (Conditions of Licence and Branch Registration) Rules 2025 and the Commercial Licensing Regulations (Controlled Activities) Rules 2025.
The new regime took immediate effect and replaces the previous system for both new applicants and existing licence holders, marking one of the most significant enhancements to ADGM’s professional-services sector since its inception.
According to the Registration Authority, these updates are designed to strengthen regulatory integrity, enhance market confidence, and align ADGM’s operational environment with international best practices in governance and compliance.
Key Licensing Requirements
Legal Service Providers
Firms providing legal services within ADGM must now:
- Appoint a managing partner or equivalent with a minimum of eight years’ post-qualification experience;
- Maintain a registered office within ADGM;
- Hold professional indemnity insurance; and
- Submit annual returns to the Registration Authority.
Tax Service Providers
A new controlled activity for tax services has been introduced. Under the rules:
- At least half of senior management must hold recognised professional tax qualifications;
- Firms must secure and maintain professional indemnity insurance; and
- Providers must adhere to defined conduct principles ensuring independence and ethical standards.
Company Service Providers
Entities offering company formation and related corporate services are now required to:
- Implement robust governance frameworks;
- Establish clear policies and procedures for identifying and managing conflicts of interest; and
- Demonstrate effective compliance management systems.
Transitional Timelines and Compliance
The Registration Authority has introduced transitional periods to allow existing firms time to meet the new standards.
However, all service providers are expected to begin implementing compliance measures immediately to ensure alignment with the updated framework.
Raising the Bar for International Standards
These reforms reinforce ADGM’s position as a trusted jurisdiction for global financial and professional services, ensuring that all firms operating within the free zone maintain transparent, accountable, and ethical practices.
Established in 2015 and operating under English common law, ADGM covers Al Maryah Island and Al Reem Island, and today stands as one of the leading financial hubs in the Middle East and Africa.
Knightsbridge Group supports law firms, tax advisors, and corporate service providers in achieving and maintaining compliance with ADGM and UAE-wide regulatory frameworks.
Our legal and structuring teams can assist with licence applications, compliance audits, and governance reviews to ensure full alignment with evolving regulatory expectations.
For advisory support or a confidential consultation, contact Knightsbridge Group’s legal and corporate governance division.
