Establishing an FSP under FSRA in ADGM in 2025

1. Advantages of operating in and from Abu Dhabi 

Strategically positioned between the Middle East, Africa, and Asia, Abu Dhabi serves as a key gateway for international financial operations. This advantageous location, combined with world-class infrastructure—including a globally connected airport and modern seaport—supports efficient cross-border operations.

Abu Dhabi’s regulatory and economic environment continues to attract businesses. The ADGM framework is aligned with international regulatory standards and fosters innovation without compromising financial integrity. Notably, Abu Dhabi offers a highly competitive tax regime with no corporate or personal income taxes, making it one of the most attractive financial hubs worldwide.

Quality of life is another critical factor. The emirate’s safety, stability, and access to excellent healthcare, education, and leisure amenities make it a top destination for professionals and their families. As a result, businesses benefit from access to a skilled, multicultural talent pool that enhances operational capabilities and fosters a productive workplace culture.

2. What is the difference between an EMI and a PSP? 

The FSRA follows an activities-based regulatory approach. A firm must obtain an FSP license that specifically covers only the regulated activities it intends to carry out.

The licensing process begins prior to establishing a legal entity in ADGM, as FSRA’s in-principle approval is required first. The process includes the following steps:

Pre-Application:

• Initiate contact with the FSRA Authorisation team to outline your business model and proposed regulated activities.
• Submit an initial application proposal for review and receive feedback.

Formal Application:

• Complete and submit the official FSRA forms, with all required documents and payment of application fees.
• FSRA reviews the application, requests clarifications where needed, and may interview candidates for Approved Person roles.

Outcome:

• Receive an In-Principle Approval (IPA) outlining preconditions.
• Upon satisfying the IPA preconditions, the FSRA grants the Financial Services Permission.

For tailored assistance, contact us at  info@salvusfunds.com to speak with our Investment Firms Licensing team about your ADGM licensing strategy.

3. Overview of FSRA Category 2, Category 3A and Category 4 licenses

The FSRA offers several license categories depending on the type of regulated activity. Below we highlight three of the most relevant for investment service providers:

Category 2 License

• Dealing in Investments as Principal (non-matched principal)
• Providing Credit

Category 3A License

• Dealing in Investments as Principal (matched principal only)
• Dealing in Investments as Agent

Category 4 License

• Arranging Credit
• Arranging Deals in Investments
• Advising on Investments of Credit
• Arranging Custody
• Operating a Multilateral Trading Facility or Organized Trading Facility
• Operating a Private Financing Platform
• Operating a Representative Office

Note: This is a representative, non-exhaustive list. Regulated activities from multiple license categories may be combined, subject to additional approval and fees.

Capital & Fee Comparison

OTC: Over-the-Counter | RCR: Risk Capital Requirement | EBCM: Expenditure-Based Capital Minimum

Timeline

The FSRA typically takes 6 to 10 weeks to issue an In-Principle Approval (IPA) from the time a complete application is submitted, and fees are paid. After receiving the IPA, the applicant has up to 3 months to fulfill the listed preconditions and obtain the final FSP.

4. How can SALVUS support your journey 

At SALVUS, our Investment Firms Licensing team combines regulatory insight and project management experience to help you successfully obtain your FSP in ADGM or other regional jurisdictions.

We assist with:

• Identifying the suitable license type and activities
• Preparing a complete application
• Liaising with FSRA regulators on your behalf
• Structuring a cost-effective operating plan
• Sourcing key personnel (in-house or outsourced) as needed

Whether you’re a startup entering the UAE or an established group expanding into the region, SALVUS ensures your application is well-prepared and compliant every step of the way.

For tailored assistance, contact us at  info@salvusfunds.com to speak with our Investment Firms Licensing team about your ADGM licensing strategy.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.