Why UK firms choose ADGM
ADGM has grown fast by competing with DIFC on cost and flexibility. For UK finance and wealth clients, the draw is specific.
English law, applied directly
ADGM applies English common law directly, the same tradition as London, with independent English-language courts.
Lower-cost regulation
The FSRA regulates financial firms at generally lower fees than DIFC’s DFSA, which matters for smaller managers.
Cost-efficient SPVs
An ADGM SPV needs no physical office, just a licensed service provider, so holding structures stay cheap.
Family office friendly
A single family office threshold of about USD 10 million and modest fees suit a first, focused office.
Strong on digital assets
ADGM has the UAE’s most developed crypto and digital-asset framework, a real draw for that sector.
Hub71 for startups
Eligible tech startups can tap Hub71 for subsidised space, visa support and access to UAE investors.
ADGM vs DIFC: which financial centre is right for you?
This is the question almost everyone asks, and there is no universal winner. Both are common-law financial centres with English-language courts and 0% tax on qualifying income. ADGM tends to win on cost and structuring; DIFC on scale and ecosystem. Here is how they line up.
| Factor | ADGM | DIFC |
|---|---|---|
| Location | Abu Dhabi, Al Maryah and Al Reem Islands | Dubai, the Gate District |
| Regulator | FSRA | DFSA |
| Regulated fees | Generally lower | Generally higher |
| SPVs and holding | Low cost, no office needed | Office generally required |
| Family offices | Lower entry threshold | Deeper wealth ecosystem |
| Ecosystem and brand | Growing fast | The most established |
| Best for | Holding, SPVs, family offices, funds, fintech | Banks, large asset managers, Dubai-focused firms |
ADGM entity types
ADGM offers more than a standard trade licence. Its SPV and Foundation structures are a big part of why holding and family-office work heads its way.
| Entity type | What it is | Best suited to |
|---|---|---|
| Commercial | A non-financial operating company for consulting, trade or professional services. | Advisory, consulting and service firms. |
| Financial (FSRA) | A regulated financial-services firm authorised by the FSRA. | Asset managers, funds, advisers, brokers. |
| Tech Startup | A simplified licence for tech firms, with access to Hub71 incentives. | Fintech, AI and tech startups. |
| SPV | A special-purpose vehicle to hold shares, property or assets. No office needed. | Holding structures and asset protection. |
| Foundation | A structure for succession, estate planning and long-term asset holding. | Family offices and wealth planning. |
ADGM setup costs in 2026
ADGM costs depend heavily on your entity and activity. An SPV starts from around AED 7,000, while a non-financial commercial company runs from about AED 15,000 all in for the first year. Regulated financial firms cost far more, with FSRA licence and funded-capital requirements pushing the total into six figures. The biggest single variable is the office.
- SPV from about AED 7,000
- Commercial all-in from about AED 15,000
- SPVs need no office, just a service provider
- Regulated firms: FSRA fees plus funded capital
- Office is the main cost driver
- Al Maryah premium, Al Reem generally cheaper
For a figure matched to your entity and activity, use our free cost calculator or ask us for a quote.
Is ADGM the right base for you?
ADGM and DIFC are both strong, so this is about fit rather than quality. Here is a straight read on which way to lean.
ADGM fits if you
Are setting up a holding company, SPV or family office
Are a fintech that wants the RegLab sandbox or Hub71
Want lower-cost FSRA licensing than DIFC’s DFSA
Have clients or capital based in Abu Dhabi
Value English common law applied directly, and a strong crypto framework
Look at DIFC or elsewhere if you
Are an international bank or large asset manager with DFSA ties
Have Dubai as your primary market and client base
Want the deepest private-banking and professional-services network
Run a general trading business, where DMCC or a value zone fits
Do not need a financial centre at all, where IFZA or RAKEZ is cheaper
Not sure whether ADGM or DIFC is the better home for your structure? We will compare them for your business on a free call.
Set up your ADGM company with Riz & Mona Consultancy
Riz & Mona Consultancy guides UK finance, fintech, fund and family-office clients through ADGM, from choosing the right entity, whether an SPV, a Foundation or an FSRA-regulated firm, to registration and banking. Most of it runs remotely, in UK hours, and we will tell you honestly if DIFC or another route suits you better. UK-based, with more than 15 years on the ground in the UAE.
- SPVs, foundations and FSRA setups
- ADGM vs DIFC advice
- Honest guidance
- Set up from the UK
Frequently Asked Questions (FAQs)
The questions UK founders ask us most about holding structures. Rules change, so treat these as a guide and confirm your own case before you commit.
What is ADGM?
ADGM, the Abu Dhabi Global Market, is a financial free zone established in 2015 on Al Maryah Island, now expanded onto Al Reem Island. It applies English common law directly, has its own courts and financial regulator, and is one of the UAE’s two international financial centres alongside DIFC.
Who regulates ADGM?
Financial firms in ADGM are regulated by the FSRA, the Financial Services Regulatory Authority. This is the ADGM equivalent of the DFSA, which regulates DIFC. Non-financial companies register with the ADGM Registration Authority and do not need FSRA authorisation.
ADGM or DIFC: which is better?
Neither is universally better. ADGM tends to win on cost, SPVs, foundations and family offices, and DIFC on scale, brand and its banking ecosystem. The right one depends on your activity, your clients and where you need to be, and we will compare them for you.
How much does ADGM setup cost?
An SPV starts from around AED 7,000, and a non-financial commercial company from about AED 15,000 all in for the first year. FSRA-regulated firms cost far more, with licence and funded-capital requirements taking the total into six figures.
What is an ADGM SPV?
An SPV, or special-purpose vehicle, is a company used to hold shares, property or other assets rather than to trade. In ADGM it needs no physical office, only a licensed service provider, which keeps holding structures low cost.
What is an ADGM Foundation?
A Foundation is a structure used for succession, estate planning and long-term asset holding. ADGM Foundations are popular with family offices and can hold SPVs and companies as part of a wider wealth structure.
Do I need a physical office in ADGM?
For most entities, yes, whether a desk or a full office on Al Maryah or Al Reem Island. SPVs are the exception and can operate through a licensed service provider without their own office.
Can a UK fintech set up in ADGM?
Yes. ADGM has a strong fintech framework, including the RegLab regulatory sandbox for testing regulated products, and eligible startups can access Hub71 incentives such as subsidised space and investor introductions.
Does ADGM use English law?
Yes, and directly. ADGM applies English common law as its own legal system, with independent English-language courts, which UK firms find familiar and predictable for contracts and disputes.
How long does ADGM setup take?
An SPV takes about two to three weeks, and a commercial or tech company two to six weeks. FSRA-regulated setups take longer, usually eight to sixteen weeks, because of the authorisation review.
Can I set up an ADGM company from the UK?
Yes. Much of the ADGM process is handled online, so UK founders can complete most of it remotely, in UK hours. Regulated setups involve more steps, which we manage for you.
If I set up in ADGM, do I still pay UK tax?
Setting up in ADGM does not end your UK tax on its own. Your UK residence is decided by the Statutory Residence Test, so the exit needs planning. Our accounting team handles this with you, and our living and working guide explains it.
Start your ADGM company formation today
Book a free 30-minute consultation, or estimate your cost with our calculator. We will help you choose ADGM or DIFC.
