Al Reem Island Companies – A Comprehensive Guide to Top Businesses

Al Reem Island is a rapidly developing district in Abu Dhabi, UAE. Due to its strategic location, robust infrastructure, and diverse residential and commercial properties it has become one of the most sought-after destinations for businesses and investors. Situated near Abu Dhabi’s city centre, Al Reem Island provides a perfect balance of work, life, and play – offering its residents and businesses an unparalleled lifestyle.

Recent years have seen an increase in companies setting up operations in Al Reem Island. The island hosts various local and international companies from multiple sectors, including engineering, real estate, and financial services. Among the prominent businesses, Schlumberger Middle East SA and Profile Group Properties have found their home on the island.

The regulatory environment in Al Reem Island is also beneficial as companies falling under the jurisdiction of the Abu Dhabi Global Market (ADGM) reap the rewards of its expansion, providing easy access to tailored legal frameworks and financial services.

Al Reem Island Companies – Key Takeaways

• Al Reem Island is a popular destination for businesses in Abu Dhabi, UAE, offering a range of opportunities and a thriving lifestyle
• A diverse array of companies have established operations on the island, benefitting from its strategic location and favourable regulatory environment
• The jurisdictional expansion of ADGM plays a vital role in attracting businesses to Al Reem Island, providing additional benefits to its growing economy

Overview of Al Reem Island

Geographic and Demographic Profile

Al Reem Island is a thriving waterfront community in Abu Dhabi, the capital of the United Arab Emirates. This island is known for its imposing skyscrapers, luxurious residential properties, and various leisure zones, making it a popular destination for tourists and residents. Just a few kilometres from the bustling city centre, Al Reem Island offers a blend of contemporary living and leisure amenities, making it a sought-after location for those searching for a balanced lifestyle.

Regarding demographics, Al Reem Island attracts diverse inhabitants, from professionals and executives working in the UAE to affluent families looking for an upscale living experience. The island offers a variety of accommodation options, including apartments, penthouses, and villas, catering to different budget levels and preferences.

Historical Development and Growth

The development of Al Reem Island has been a dynamic journey, marked by its accelerated growth and expansion in recent years. The island’s master plan was designed to create a sustainable living environment, integrate modern architecture, and provide ample green space for residents.

Over the years, the island has seen steady growth in its real estate sector, supported by a strong demand for high-quality residential properties. This has also been accompanied by the developing of various leisure and retail spaces, offering residents and visitors multiple activities and attractions. Among the island’s notable leisure and retail destinations are the Shams Boutik Mall and the upcoming Reem Mall, which is set to become one of the largest shopping centres in the UAE.

From an economic standpoint, Al Reem Island has positioned itself as a critical location for businesses and investors, particularly with the expansion of the Abu Dhabi Global Market (ADGM) jurisdiction. This expanded jurisdiction has benefited companies on the island by providing them a progressive and well-regulated business environment, making Al Reem Island a key hub for local and international businesses in the UAE.

In summary, Al Reem Island has come a long way in its development journey, transforming into a thriving waterfront community that continues to attract residents, businesses, and tourists alike. The island’s impressive growth, diverse lifestyle offerings, and prime location continue to contribute to its appeal as a sought-after destination in Abu Dhabi.

Business Climate

Commercial Market Sector

The commercial market sector on Al Reem Island has experienced significant transformation following the expansion of the Abu Dhabi Global Market (ADGM) jurisdiction. Previously limited to Al Maryah Island, the UAE Cabinet Resolution No. 41 of 2023 extended ADGM’s reach to include Al Reem Island, thus creating one of the largest concentrated financial districts in the world, with a combined geographic area of 1,438 hectares (~14,377,774.9 sqm).

List of Top Sectors:

1. Financial Services
2. Technology
3. Real Estate
4. Energy

The growth of the commercial market sector has led to heightened demand from international companies that recognise Abu Dhabi as a preferred destination for global business expansion. Including Al Reem Island businesses in the mandate has made ADGM’s financial district ten times larger, providing a thriving business environment.

Growth of International Companies

As a result of ADGM’s expansion and the establishment of one of the world’s largest financial districts, Al Reem Island has seen a surge in the number of international companies setting up a presence in the market. It has become a hotspot for business expansion as more organisations recognise the benefits of operating within ADGM jurisdiction.

Al Reem Island businesses are invited to obtain an ADGM licence when their current ADDED licence expires, with a deadline of December 31 2024. Starting November 1, 2023, businesses planning to establish a new presence on Al Reem Island must submit their commercial licence applications to ADGM.

Impact on GDP of the UAE

The expansion of ADGM jurisdiction to encompass Al Reem Island has positively influenced the UAE’s GDP. The increased presence of international companies in the region contributes to the UAE’s broader economic diversification strategy, ultimately bolstering the country’s overall GDP.

By growing the scope and scale of the financial district, Al Reem Island has become a significant contributor to the economy, making it a driving force behind Abu Dhabi’s and the UAE’s ongoing economic growth and development.

Real Estate and Infrastructure

Key Landmarks: Sky Tower and Addax Tower

Al Reem Island is a thriving mixed-use community located off the coast of Abu Dhabi and has seen significant development in recent years. Among the impressive structures that dominate its skyline are the Sky Tower and Addax Tower.

Sky Tower stands tall as one of the island’s most iconic landmarks. This architectural marvel comprises residential and commercial spaces, offering luxury living and business opportunities. The tower boasts various amenities, including a fitness centre, swimming pool, and retail outlets.

On the other hand, Addax Tower is primarily commercial, featuring state-of-the-art office spaces. The building is designed with modern infrastructure and connectivity while considering sustainability. With its premium location and exceptional facilities, Addax Tower has become a sought-after business address on Al Reem Island.

Real Estate Dynamics

The real estate market on Al Reem Island is vibrant and dynamic, catering to the diverse needs of its residents and investors. The area offers a range of property types, from luxurious apartments to upscale villas. Some popular residential locations on Al Reem Island include Marina Square and Shams Abu Dhabi.

The real estate market on Al Reem Island can be summarised in the following points:

• A mix of residential, retail, and commercial properties.
• Investment costs amounting to $30 billion.
• Spanning across 6.5 million square meters.

Notable real estate agencies operating on Al Reem Island include Bayut, Al Zaeem Real Estate, and Masaood Developments LLC.

With its strategic location, stunning landscapes, and modern infrastructure, Al Reem Island has become a prime destination for local and international investors. Its ongoing development further strengthens the island’s reputation as a prosperous hub for real estate, commerce, and leisure activities.

Regulatory Environment

Abu Dhabi Global Market (ADGM)

Abu Dhabi Global Market (ADGM) is a leading international financial centre in the United Arab Emirates. As a result of the UAE Cabinet Resolution No. 41 of 2023, ADGM’s jurisdiction expanded from its original location in Al Maryah Island to include Al Reem Island, significantly increasing its total area to almost 14.38 million sqm. This expansion has implications for businesses and investors operating on Al Reem Island.

Laws and Regulations

ADGM operates under comprehensive laws and regulations to maintain a transparent, efficient, and secure environment for its member businesses. Its legal framework is based on English common law, ensuring familiarity and ease of interpretation for international investors. The presence of an independent judiciary within ADGM further strengthens its commitment to a fair and stable legal environment.

One of the critical aspects of this regulatory environment is the enforcement of powers by ADGM’s Registration Authority (RA), which seeks to maintain a high level of compliance and trust among businesses operating within its jurisdiction.

Licensing and Registration

As ADGM’s jurisdiction expands to encompass Al Reem Island, businesses operating under an Abu Dhabi Department of Economic Development (ADDED) licence will eventually need an ADGM licence. Existing businesses have until December 31 2024, to do so after their current ADDED licence expires. From November 1 2023, any new businesses seeking to establish themselves on Al Reem Island must submit commercial licence applications to ADGM.

The licensing process ensures that businesses adhere to the necessary compliance requirements, including:

• Company formation: Registering a legal entity within ADGM’s jurisdiction
• Activity approval: Obtaining permission for specific business activities
• Operational requirements: Ensuring compliance with relevant laws and regulations

In summary, the regulatory environment for businesses on Al Reem Island is influenced by the expansion of ADGM’s jurisdiction, providing an attractive and secure framework for investors. Through its transparent legal system, effective licensing process, and commitment to enforcing regulations, ADGM fosters a thriving and competitive business ecosystem on Al Reem Island.

Future Prospects

Diversification Strategy

Al Reem Island’s diversification strategy aims to enhance its position as a vibrant business hub in Abu Dhabi. By expanding its offering beyond residential developments, Al Reem Island is catering to the increasing demand from international and regional companies choosing the island as their preferred location to work and live.

As part of this strategy, the island plans to build prestigious educational institutions, recreational infrastructure, and advanced medical centres, creating an ecosystem for growth and innovation.

Al Reem Island’s expansion is also boosted by the decision to integrate it within the Abu Dhabi Global Market (ADGM) jurisdiction, creating one of the world’s largest international financial districts. This move will attract more businesses to set up their operations on Al Reem Island and contribute to the region’s economic growth.

Innovation and Collaboration

As Al Reem Island businesses are inducted into the ADGM community, they can access a platform that offers limitless opportunities for innovation and collaboration. Existing Al Reem Island businesses are invited to obtain an ADGM licence once their current ADDED licence expires. New companies must submit commercial licence applications to the ADGM starting November 1, 2023.

This integration provides an environment for existing and new businesses on Al Reem Island to collaborate with other companies within the ADGM jurisdiction. Some key areas of collaboration could include:

• Financial services: Sharing knowledge and expertise to develop innovative products and services.
• Education and research: Partnering with educational institutions on Al Reem Island to drive research and development in various sectors.
• Healthcare: Collaborating with advanced medical centres to find innovative healthcare solutions and improve patient care.

In conclusion, Al Reem Island’s prospects are promising due to its diversification strategy, innovation, and collaborative ecosystem. The integration with ADGM will further contribute to the island’s development as a leading business hub in the region.