Abu Dhabi Global Market is introducing a number of new initiatives to boost its growth and attract more companies to the capital’s financial centre, its chairman has said.
“We have created many successful growth opportunities, brought world-class FinTech companies to the UAE and collaborated on cross-border initiatives to establish an inclusive financial and FinTech ecosystem in Abu Dhabi … that will foster a more dynamic, advanced and lasting sustainable economy,” Ahmed Al Zaabi said while speaking at FinTech Abu Dhabi on Tuesday.
The financial centre, which aims to connect the emirate with international markets in the Middle East, Africa and South and East Asian economies, is part of Abu Dhabi's efforts to diversify its economy.
The ADGM had 3,700 companies operating within it at the end of June, including global businesses, financial institutions, treasury centres, professional services firms, small and medium enterprises, start-ups and FinTech companies such as digital asset-trading entities.
The ADGM has introduced a number of new initiatives over the past year as it continues its focus on attracting new companies to the financial centre. It launched the Mena region’s first calibrated venture capital managers framework, as well as a FinTech sandbox regulatory regime.
The financial centre also introduced a comprehensive virtual regulatory framework, which is helping ADGM to transform “into a key global jurisdiction and destination for virtual and digital assets, with 12 licensed digital assets entities and counting”, Mr Al Zaabi said.
Other initiatives include the launch of the ADGM Digital Lab, an online platform that allows regulators, FinTech start-ups and financial institutions to collaborate and solve issues that affect the financial sector.
Mr Al Zaabi also said Israel’s venture capital firm OurCrowd had set up operations in the ADGM.
This is “the first-ever Israeli VC to incorporate in Abu Dhabi, as they join our ever-expanding family of venture capital and investment institution partners,” he said.
OurCrowd, whose headquarters are in Jerusalem, has distributed capital into more than 280 portfolio companies and 30 funds across five continents. Japan's SoftBank is also investing in the firm.
The UAE and Israel normalised relations after signing the Abraham Accords in September last year. The two countries have since signed a series of deals to foster co-operation in sectors ranging from aviation to finance.
ADGM also completed the world’s first digital trade financing pilot project in collaboration with the Monetary Authority of Singapore as it continues to offer new services to businesses, Mr Al Zaabi said.
“I am certain, that many more such projects will follow … in turn accelerating the digitisation of trade finance in Abu Dhabi and the UAE,” he said.
Abu Dhabi is focusing on improving business conditions and supporting its economy, said Mohamed Ali Al Shorafa, chairman of Abu Dhabi Department of Economic Development.
The emirate this year cut business set-up fees by more than 90 per cent to improve the ease of doing business. It also introduced a professional licence that allows foreigners full ownership of businesses related to 604 activities as the emirate seeks to attract more investors and boost its economy.
“Our goal for Abu Dhabi … is to create a thriving business environment that encourages growth and innovation,” Mr Al Shorafa said.
Abu Dhabi’s economy is expected to grow 6 per cent to 8 per cent over the next two years, driven by the oil sector, government spending, financial services and foreign direct investment, Mr Al Shorafa said earlier this year.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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