ADGM tightens rules for sales promotions

ADGM has updated its Commercial Permits framework with new regulations and detailed guidance governing sales and promotional activities, aiming to simplify approvals while strengthening consumer protection across Abu Dhabi’s international financial centre.
The revised framework establishes clearer requirements for businesses, professionals and other eligible entities seeking to conduct promotions within ADGM’s jurisdiction, which covers Al Maryah Island and Al Reem Island. It applies across commercial sectors and is intended to create a consistent regulatory route for activities that could affect pricing, customer decisions or the distribution of prizes.

Promotional activities covered by the rules include temporary sales discounts, clearance campaigns, instant-prize offers, prize draws, product launches and promotional stands. Businesses undertaking specified activities must obtain the appropriate permit from the Registration Authority before proceeding.

The accompanying guidance explains which activities require approval, what documentation applicants must provide and how requests will be assessed. Applications can be submitted through the Access ADGM portal, where businesses can upload supporting material, pay applicable charges and receive notifications on the progress of their requests.

The digital process is designed to reduce uncertainty for applicants and shorten the time needed to secure permits. Clearly defined documentation requirements are also expected to limit delays caused by incomplete submissions or uncertainty over the category under which a campaign should be registered.

Rashed Al Blooshi, chief executive of the Registration Authority, said the changes were intended to meet the evolving needs of ADGM’s business community while maintaining high standards of governance, transparency and consumer protection.

He said the increasing scale and sophistication of commercial activity within the jurisdiction required businesses to have clearer obligations, a more efficient application process and practical support for compliance.

The updated system builds on rules issued under the Commercial Permits Regulations 2024. Subordinate regulations introduced in 2025 created dedicated requirements for entertainment and events, temporary commercial operations, and sales and promotions.

Those measures followed a public consultation on temporary commercial permits, temporary activity permits, special sales and promotions permits and related fees. The consultation sought feedback on how ADGM could regulate short-term and promotional activity without imposing unnecessary burdens on businesses.

Under the broader permits framework, a temporary commercial permit may be required when an entity seeks to operate within ADGM for a limited period without holding a standard commercial licence for that activity. Sales and promotions permits apply to specified campaigns conducted by ADGM-licensed entities or eligible temporary permit holders.

The framework gives the Registration Authority supervisory powers to examine compliance, investigate suspected misconduct and take enforcement action where necessary. Businesses may be required to demonstrate that advertised discounts, prizes and campaign conditions are accurate, transparent and capable of being delivered as presented.

Greater scrutiny of promotions is intended to reduce the risk of misleading advertisements, unclear prize-draw conditions, artificial discount claims and campaigns that fail to disclose material restrictions. Such practices can undermine customer confidence and place compliant businesses at a disadvantage.

The guidance is also expected to help companies distinguish ordinary marketing activity from promotions requiring formal approval. This distinction is important for retailers, hospitality operators, property-related businesses, professional service providers and organisers of product demonstrations or public-facing campaigns.

ADGM’s commercial landscape has expanded sharply following the extension of its jurisdiction to Al Reem Island. The move brought a substantially larger number of retail outlets, offices, hospitality businesses and service providers within its regulatory perimeter, increasing demand for standardised licensing and permit procedures.

The financial centre has simultaneously attracted more banks, asset managers, technology companies, professional services firms and international groups establishing regional operations in Abu Dhabi. This growth has increased the volume and variety of business events, launch campaigns, branded installations and customer promotions conducted within the district.

By consolidating the legal requirements for sales and promotional activities, the Registration Authority is seeking to avoid fragmented approvals and inconsistent treatment of similar campaigns. The framework is intended to give businesses a single reference point covering eligibility, application procedures, supporting evidence and regulatory expectations.

The permit system forms part of a wider effort to modernise commercial regulation within ADGM. Other changes have addressed beneficial ownership disclosures, nominee arrangements, controlled activities and oversight of legal, tax and company service providers.