Abu Dhabi Push To Become International Financial Center

Abu Dhabi, the capital of the United Arab Emirates, has announced plans to launch a “financial free zone” later this year, reports the law firm Brown Rudnick. It will have its own legal framework and regulatory authority. Among the benefits being touted are a 50-year tax exemption on profits and money or asset transfers out of the previously established Abu Dhabi Global Market. “Companies operating out of the ADGM would be able to trade in commodities, currencies, securities and derivatives; to offer brokerage, settlement, clearing and depositary services; and to provide Islamic finance and other banking products and financial services,” says the client alert. Some elements of English common law are being incorporated into the legal regime, and draft regulations pertaining to employment will apply “where appropriate,” the post says, “though employers will be able to make dismissals without specified reasons or procedures.” Questions have been raised over whether the ADGM will compete with or complement a similar regime in the UAE’s largest city, Dubai.