Abu Dhabi has introduced new regulations that make it easier for businesses to expand into the emirate. The Abu Dhabi Department of Economic Development (ADDED) announced that companies registered in other emirates or free zones can now establish branches in Abu Dhabi without needing a physical office for the first year.
This initiative aims to enhance business growth by offering greater flexibility. By eliminating the immediate requirement for business premises, Abu Dhabi is encouraging companies to explore new opportunities in its rapidly growing economy.
Boosting Economic Growth and Investment
The decision simplifies business expansion while reinforcing Abu Dhabi’s status as a major investment hub. It also plays a key role in economic diversification by supporting various industries beyond the oil sector. The exemption applies to 1,200 economic activities across multiple sectors, providing a broad scope for businesses to benefit.
Over the past decade, Abu Dhabi’s non-oil sector has grown by 59%, with a 6.6% increase recorded in the third quarter of 2024. As a result, this sector now contributes 54% to the emirate’s total GDP. By allowing businesses to operate without premises, the government aims to sustain this upward trend.
Mohammed Munif Al Mansouri, Acting Director-General of the Abu Dhabi Registration and Licensing Authority (ADRA), highlighted the importance of this initiative. He stated:
“We are working towards a smart, diversified, and sustainable economy by enabling businesses to benefit from Abu Dhabi’s opportunities. Our measures simplify expansion while ensuring a strong legal and regulatory framework that enhances the ease of doing business. This will help achieve our strategic economic growth objectives and boost Abu Dhabi’s global competitiveness.”
Abu Dhabi has already gained recognition as the fastest-growing startup ecosystem in the Middle East and North Africa. To further support entrepreneurs, the emirate has expanded the Tajer Abu Dhabi (Abu Dhabi Trader) and Freelancer licences, covering 1,200 and 100 activities, respectively. This expansion encourages new businesses, supports job creation, and strengthens commercial activity.
How Businesses Can Apply
Companies looking to establish a branch can complete the process through the TAMM digital government services platform. The steps include:
- Submitting the required documents.
- Obtaining necessary approvals.
- Paying applicable fees.
- Receiving an economic licence upon approval.
This regulation is expected to attract more investors, support business growth, and enhance Abu Dhabi’s role in the UAE’s economic development.
