Innovation At ADGM: Licensing Opportunities For Tech And AI Startups

With its world-class infrastructure, strong legal and regulatory frameworks that encourage innovation and support new entrepreneurs, and unmatched connectivity to global markets, the UAE has firmly established itself as a leading  global destinations for technology and AI – driven ventures and investments. The country’s economic free zones, particularly the Abu Dhabi Global market (ADGM),is further enhancing this ecosystem through progressive initiatives like the Tech-Startup License, designed to support emerging business and attract global talent to its growing technology community.  

The Abu Dhabi Global Market (ADGM)

One of the world’s premier international financial centres and an economic free zone, the ADGM is home to global corporations, investment banks, fintech, venture capitalists, asset managers and advisory firms. The ADGM entails its own civil and commercial laws based on the English common law, which provides an impartial, independent, effectively enforceable and transparent regulatory system that instils confidence in the local and international markets. With its robust and diverse business environment and unique connectivity to global markets, combined with a favourable legal framework, the ADGM is becoming a leading centre for innovation, offering exceptional opportunities for tech and AI ventures.

Why Choose ADGM for Your Business?

Situated at the heart of Abu Dhabi’s innovation landscape, ADGM serves as the base for Hub71 — a dynamic ecosystem that brings together global entrepreneurs, venture capitalists, and accelerators. Recognized as a premier international business hub, Abu Dhabi hosts numerous leading multinational corporations, offering startups a dynamic environment for collaboration and expansion.

ADGM’s Tech Startup License provides attractive incentives for up to three years, making it an appealing destination for emerging businesses. Through its partnership with Hub71 and the broader innovation cluster, startups benefit from seamless access to a strong network of government bodies, investors, and strategic industry partners. Among ADGM’s wide range of initiatives  to support innovative businesses, the FinTech Regulatory Laboratory (RegLab), launched by the ADGM FSRA and the Tech Startup Licence, offers opportunities for tech and AI ventures to establish and expand in ADGM.

What is a Tech Startup Licence?

An initiative to encourage entrepreneurship in the ADGM market, a Tech Startup Licence is a full commercial license entailing a discounted fee structure that allows local and international entrepreneurs to easily launch their innovative entity in Abu Dhabi.

A low-cost operating license: One of the key features of the tech startup license is its subsidised license fee structure for up to three years of the initial operations of the proposed entity. This discounted period helps the new entrepreneurs to set up an entity without incurring high startup costs and to explore the market and effectively develop their business model. The duration of the subsidised period and the subsequent fee structure often depend on the proposed technology company’s stage of maturity.

The two stages of maturity : Tech Startup Licence is structured in two stages — Seed and Emergent — catering to startups at different phases of growth. It is important to note that this licence is not applicable to technology service providers. It is specifically designed for technology-driven startups that focus on developing innovative products or services utilizing proprietary or novel applications of technology. A key advantage for tech startups is the opportunity to apply for the ADGM Hub71 Incentive Program, which offers generous support including up to 100% subsidies on housing, office space, and health insurance for up to 25 employees for a period of up to three years, making it an attractive ecosystem for innovation and business growth.

Eligibility and Requirements for Obtaining a Tech Start License: While the license is open to a wide range of ventures , not all types of startups are eligible . Applicants are required to satisfy the following conditions :  

• The proposed entity shall be a tech-driven startup entailing a deployable and innovative business concept facilitating technological development and innovation. Such a business concept must also have the potential to scale.
• However, facets of technology service providers, consumer retail, manufacturing etc., shall not be eligible.
• The license holders shall not engage in regulated financial services.
• The proposed entity shall have a physical office presence in the ADGM.

How to Set Up a Tech-Startup in ADGM ?

• Submission of Application: The proposed entity shall first apply for an eligibility letter from Hub71. The Hub71 approval letter stands as a prerequisite, without which the application shall not be accepted.
• Submission of Documents: While applying online, along with the Hub71 approval letter the applicant shall also submit:
• A detailed business plan expressing the nature and scope of the business, its objectives, and clearly defined milestones, against which progress can be monitored.
• Documents related to the office space lease and other documentation as required.
• Documents such as valid Passport copy, Emirates ID, documents related to the source of wealth of individual shareholders of the proposed entity etc.
• Payment of Fees: Along with the application, the initial annual license fee is required to be paid.
• Reviewal of the Application: The ADGM team shall then review the application.
• Approval: Upon the completion of the application process and its review, applicants will be informed whether their application has been approved or not.
• Incorporation and Issue of License: Once approved, the process of registration and incorporation is completed by the ADGM Registration Authority, following which the tech-startup license to operate your proposed entity shall be issued.

The ADGM Tech Startup Licence provides entrepreneurs with an affordable and efficient pathway to launch their ventures in the UAE. It enables startups to begin operations swiftly while gaining access to ADGM’s vibrant ecosystem — one that includes a broad network of industry experts, collaborative business partners, a progressive regulatory framework, and globally respected legal and commercial standards designed to support innovation and sustainable business growth