The ADGM DPR extends its applicability to entities based on their actions that are "likely to have an effect on a business activity" within the jurisdiction. This provision is part of a broader scope that defines the territorial reach of the regulations.

The regulation provides specific examples of what might constitute an effect on business activity:

1. "an effect on an undertaking's capital structure"
2. "the legal or beneficial ownership of a business or asset"
3. "a person's industrial strategy"

These examples illustrate that the ADGM DPR is concerned with actions that have significant business implications within its jurisdiction. The use of the phrase "likely to have an effect" suggests that the actual occurrence of the effect is not necessary; the mere likelihood is sufficient to trigger the application of the law.

Implications

This provision has several important implications for businesses:

1. Broad Reach: The law's applicability is not limited to entities physically present in ADGM. Actions taken outside the jurisdiction that affect business activities within ADGM could potentially fall under the regulation's scope.
2. Business Focus: The emphasis on business activities suggests that the law is particularly concerned with protecting data in commercial contexts.
3. Strategic Decisions: Companies making decisions that could impact businesses in ADGM, such as mergers, acquisitions, or significant strategic shifts, may need to consider ADGM data protection regulations even if they are not directly operating within the jurisdiction.
4. Indirect Effects: The broad language of "likely to have an effect" means that even indirect actions could potentially trigger the application of the law if they are likely to impact business activities in ADGM.
5. Due Diligence: Entities engaging in transactions or activities that might affect businesses in ADGM should conduct thorough due diligence to assess whether their actions might bring them under the purview of ADGM DPR.

This factor extends the reach of ADGM DPR beyond traditional territorial boundaries, focusing on the impact of data processing activities on the ADGM business environment rather than solely on the location of the data controller or processor.