Looking to launch or expand or build your financial business in the UAE? Abu Dhabi Global Market (ADGM) offers everything you need – from a reliable legal system based on English common law to strong regulatory standards and full access to international markets.
Whether you have a fintech startup, launching a digital asset platform, managing investment funds, or offering brokerage, custody, or Islamic financial services, ADGM could be the ideal free zone for your business.
In this guide, we will walk you through the benefits of setting up in ADGM, the types of financial licenses available, and the step-by-step process to get licensed. Let’s start.
What are your benefits of choosing ADGM?
Licensing your financial entity in ADGM offers strategic and operational advantages, including:
- 100% Foreign Ownership
- Independent Legal Framework Based on English Common Law
- Robust Oversight by the Financial Services Regulatory Authority (FSRA)
- Fintech Innovation Sandbox and Special Testing Licenses
- Strategic Location Connecting MENA, Africa, and Asia
- High International Regulatory Reputation
Types of Financial Licenses in ADGM
ADGM’s regulator, the Financial Services Regulatory Authority (FSRA), categorizes licenses based on the type and risk level of financial activities. Here’s a snapshot of the main license categories:
| Category | Activities | Min. Capital | Suitable For |
| Cat 4 | Advisory, Arranging Deals | $10,000 | Advisors, Planners, Insurance Brokers |
| Cat 3A | Brokerage, Trading | $500,000 | Trading Platforms, Brokers |
| Cat 3B | Custody of Assets | $4M | Custodians, Fund Trustees |
| Cat 3C | Asset Management, Money Services | $250–500K | Fund Managers, Payment Firms |
| Cat 2 | Credit, Prop Trading | $2M | Prop Traders, Credit Platforms |
| Cat 1/5 | Banking, Islamic Finance | $10M+ | Banks, Islamic Finance Firms |
Our Step-by-Step Guide to get your financial licence in ADGM
Setting up a regulated financial entity in ADGM involves close coordination with the FSRA. Here’s how the process typically unfolds:
Step 1: Feasibility & Strategy
Start by clearly defining your business model and selecting the most appropriate license category. At this stage, you should also assess the required capital, governance structure, and staffing needs.
QUICK TIP: To choose the most appropriate license category for your business, consider the following key questions:
- What is your core business model—are you providing advisory services, trading, custody, banking, or another financial activity?
- Will your firm hold or manage client assets or funds?
- Are your financial services conventional, or will they follow Sharia-compliant principles?
- What markets are you targeting, and what is your business’s overall risk profile?
- Are you prepared to meet the long-term compliance, governance, and operational obligations associated with the license?
Step 2: Initial Engagement with FSRA
We would be required to submit a high-level business summary to the FSRA and receive early feedback. This step helps align your proposed activities and structure with regulatory expectations.
Step 3: Formal Application
Altus Citadel will prepare and submit the application that includes your business plan, governance framework, financial projections, AML/CFT policies, details of key personnel, and proof of funding.
Step 4: Regulatory Assessment & Interviews
The FSRA will conduct background checks and fit-and-proper assessments on shareholders, directors, and key individuals. You may also be invited for interviews or to present your business model.
You would be required to appoint the following key regulatory roles, subject to FSRA approval:
- Senior Executive Officer (SEO) – UAE-based, full-time
- Compliance Officer (CO) – May also act as MLRO
- Money Laundering Reporting Officer (MLRO)
- Finance Officer – Manages financial records and reporting
- Independent Directors – Required in some license types
- External Auditor – Annual audits mandatory
Step 5: FSP Approval & ADGM Incorporation
Once approved, you will receive your Financial Services Permission (FSP). You must then incorporate your entity through ADGM’s Registration Authority and lease an office within the free zone.
Step 6: Post-Licensing Compliance
Some of the post licencing activities might include: appoint an external auditor, setting up the necessary technical framework and begin fulfilling ongoing regulatory obligations such as compliance monitoring, annual audits, and periodic reporting.
How Altus Citadel DMCC Can Support You?
At Altus Citadel DMCC, we specialize in guiding financial institutions through the ADGM licensing journey – from strategy to successful setup. Our services include:
- Feasibility assessments and license mapping
- FSRA engagement and regulatory consultation
- Full preparation and submission of licensing applications
- Drafting compliance policies (AML, risk, governance)
- Providing qualified SEO, MLRO, CO staff
- Incorporation of the company at ADGM and post-licensing support and compliance monitoring
Entering the ADGM market can unlock massive growth opportunities – but only with the right structure, strategy, and support. Whether you’re a fintech innovator or a seasoned financial institution, our experts ensure your licensing process is seamless, compliant, and efficient.
