This week, ADGM announced a major reduction in commercial licence fees starting January 1, 2025, aimed at boosting its appeal as a global business hub. The UAE Cabinet highlighted record-breaking economic growth and foreign investment figures during its first meeting of 2025. A report revealed that Mubadala was the top global sovereign wealth fund spender in 2024. Dubai Land Department launched the Smart Rental Index 2025 to standardise rental valuations, while Oman unveiled its $30.9 billion 2025 budget, focusing on fiscal balance and social welfare.
These were the top stories this week as selected by Finance Middle East editors.
ADGM slashes commercial licence fees effective January 2025
Abu Dhabi Global Market (ADGM) has announced significant changes to its commercial licence fee structure, effective January 1, 2025. The revisions include substantial fee reductions for non-financial and retail businesses, aiming to enhance ADGM’s appeal as a global business hub and streamline costs for enterprises operating within its jurisdiction.
For non-financial businesses, the initial registration fee has been reduced by 45%, from $10,000 to $5,500, while the annual renewal fee is now $5,000, down from $8,000. Retail businesses will see initial registration fees cut by more than half, from $6,000 to $2,500, and annual renewal fees reduced from $4,000 to $2,000.
Sheikh Mohammed: 2024 was UAE’s strongest year for economic and developmental growth
The UAE Cabinet, chaired by HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, convened its first meeting of 2025 at Qasr Al Watan in Abu Dhabi to review key national achievements from the previous year. The Cabinet highlighted robust economic growth, regulatory reforms, and key policy initiatives that strengthened the UAE’s global standing.
The UAE’s GDP is projected to surpass Dh1.7 trillion for the first time, driven by foreign trade volumes exceeding Dh2.8 trillion in 2024. Foreign direct investment (FDI) is estimated to reach Dh130 billion, up from Dh111 billion in 2023, consolidating the UAE’s position as the leading FDI destination in the region and 11th globally. Non-oil exports exceeded Dh540 billion, underscoring the nation’s economic diversification strategy.
Mubadala tops global sovereign spending in 2024: Global SWF report
Abu Dhabi’s Mubadala Investment Company emerged as the world’s largest sovereign wealth fund spender in 2024, deploying $29.2 billion across 52 transactions, according to data from the latest Global SWF report. This marked a 67% surge in Mubadala’s investment activity compared to the previous year, outpacing Saudi Arabia’s Public Investment Fund (PIF).
The Middle East’s sovereign wealth funds (SWFs), collectively known as the “Oil Five”—comprising Mubadala, PIF, Abu Dhabi Investment Authority (ADIA), Qatar Investment Authority (QIA) and ADQ—continued to dominate global investment activity. Together, they deployed $82 billion in 2024, with a focus on sectors such as infrastructure, technology and renewable energy. The Gulf Cooperation Council (GCC) region accounted for 38% of the world’s SWF assets, highlighting its critical role in reshaping global markets.
Dubai Land Department launches Smart Rental Index 2025 to standardise real estate valuations
Dubai Land Department (DLD) has introduced the Smart Rental Index 2025, a comprehensive system designed to regulate rental valuations across the emirate’s residential areas, including key districts, special development zones and free zones. The index, which relies on advanced building classification and artificial intelligence technologies, aims to enhance transparency, ensure fair valuations, and align with Dubai’s broader digital and real estate strategies.
The index employs a unified set of criteria for evaluating rental properties, factoring in technical and structural characteristics, quality of finishes and maintenance, spatial value, and available facilities such as parking and cleanliness. This system ensures that rental valuations reflect the true value of each property and align with prevailing market conditions.
Oman unveils 2025 budget with $30.9 billion spending plan
Oman has announced a $30.9 billion (OMR 11.8 billion) budget for 2025, aiming to balance economic growth, social welfare, and fiscal stability. Projected revenues stand at $29.2 billion (OMR 11.18 billion), based on an oil price assumption of $60 per barrel. The budget outlines a deficit of $1.6 billion (OMR 620 million), to be funded by $572 million (OMR 220 million) in borrowing and $1.04 billion (OMR 400 million) in reserve withdrawals.
Oil revenues are expected to account for 52% of total revenue, with gas contributing 16% and non-oil revenues 32%, according to Finance Minister Sultan bin Salim Al Habsi, who presented the budget in Muscat.
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