How Abu Dhabi business setup is a hot investment opportunity in UAE

Abu Dhabi over the years has spent significant time and effort on making plans to open their economy to entrepreneurs as a business-friendly location. Recently, Abu Dhabi took measures on ensuring milestones as such are achievable, under the guidance of His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces and Chairman of Abu Dhabi Executive Council.

How is Abu Dhabi Accelerating their Economy?

The $13.6 Billion Stimulus Plan

The Abu Dhabi government is aiming to provide an excellent opportunity for all entrepreneurs and aspiring entrepreneurs alike to setup their company within the emirate. The proposition is uniquely distinctive and first of its kind within the UAE and announced as the 3-year AED 50 billion stimulus package which seeks to bring lasting economic benefits to investors, residents and Emiratis alike, while also transforming the ease of doing business.

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Dual License for Abu Dhabi Free Zones Companies

A dual license is a branch license which allows free zone companies to access mainland project tenders without a separate office in the mainland of the same region or emirate. In its approach to make Abu Dhabi a more business friendly and active zone, the Abu Dhabi DED, passed a resolution which enables the companies within its free zones work outside of the free zones and participate in the bidding process for government tenders.

The purpose of introducing the dual license scheme by the Abu Dhabi DED were to promote the following:

  • To expand the scope for companies to conduct their business.
  • To improve the competitiveness index of the Emirate.
  • To attract larger foreign investments.
  • To drive forward the economy growth.

The Abu Dhabi DED in its launch of the first phase of the Dual License Initiative, announced that companies which operate in its free zones will be permitted to establish an onshore branch while operating in the capital’s free zones.

The dual license will be open to all those businesses who have their company setup in Abu Dhabi and in one of its free zones. Companies with the license will be eligible to operate in Abu Dhabi, Al Ain and as well as the Al Dhafar regions.

Obtain a Trade License Without an Office !

As part of the AED 50 billion stimulus package, the Abu Dhabi DED allows new companies to obtain a commercial license without a physical office. The announcement, which forms part of the Tajer Abu Dhabi license package scheme which mentions the following:

  • 1057 commercial activities companies can be setup without office space or physical presence.
  • The new scheme is made applicable to all GCC nationals and expat UAE residents.

Why an office space is not a requirement in the start-up phase of your company?

Cost of an office rental

Currently, office rentals are one of the major factors contributing to the high cost of company setup in UAE. Even in the case of opting for a co-working space or a flexi desk, it will consume a considerable amount of the investment. An amount which can be utilized for other business purposes in the form of marketing, advertisements or promotions.

Occasional use

In the current decade, where everyone is accessible online, with communications on social platforms, meetings held on online conference calls; businesses have become heavily dependent on the online platform. Entry entrepreneurs find themselves engaged on their laptop to get their work done and spend a major of their time in meetings out of their office. In such a scenario, an office space pans out as additional and unnecessary cost.

business setup in abu dhabi

Local Fees exempted for All New Economic Licenses

As part of the Stimulus Package, the Abu Dhabi Executive Council is encouraging company setup in Abu Dhabi for entrepreneurs by exempting government fees. Company setup in Abu Dhabi is now at such low cost in the UAE. The package is eligible under the following conditions:

  • Only for new Abu Dhabi company setup.
  • Company setup is done within the jurisdiction of Abu Dhabi.
  • Abu Dhabi Company setup is done in the year 2019 – 2020.

Additionally, the Abu Dhabi Executive Council has confirmed that all new Abu Dhabi company setup licenses will be exempted from the local Fees for a period of two years from the date of issuance of the Abu Dhabi company setup license.


Instant Licensing System

The Abu Dhabi Instant License is aimed to be one of the accelerators to the private sectors. The motive of the Instant License is to:

  • Streamline all company license applications through a digital portal.
  • Have approvals processed online instantly.
  • Ensure company license holders of most sectors are eligible to conduct business immediately.
  • Increase private sector contribution to economic growth.
  • Ensure most commercial licenses are issued immediately.

Recently, the Abu Dhabi Department of Energy (DoE) passed an official statement stating that small-size energy firms will be provided with a free two-year company license. Additionally, adding that the Abu Dhabi company setup license of such firms will be issued within one working day.

Entrepreneurs will be able to receive the instant license for the following service:

  • Water production, treatment and desalination.
  • Electricity generation.
  • Electricity generation by solar cells (maximum capacity of 50 kWp at a single facility).
  • Wastewater collection and treatment, recycling and disposal.
  • Electricity storage, distribution and supply.
  • Water supply, sale and purchase by tankers.
  • Wastewater collection and disposal by tankers.

With the introduction of instant license, Abu Dhabi makes to ensures entrepreneurs do not have to wait long to setup their business activities in the emirate.

Through this article I have aimed to shed light on why Abu Dhabi is aiming to be the hottest market to investment in for business. The Abu Dhabi Government has showed clear signs to make Abu Dhabi a very business friendly environment through the initiatives taken. With new laws being introduced, along with the changing business dynamics, there is plenty to consider and part of our services is to offer the ideal solution for your business. Choosing your company location for your business activity is as important as your investment.

Abu dhabi business setup

ADAM Global provides the support services to ensure you concentrate on your business.

We help setup your business, so you can build it up.

For more information, please call or whatsapp on
+971 50 911 0516 , or send an email to adarsh.rajeev@adamglobal.com

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