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Business in Abu Dhabi

Abu Dhabi Business Basics: Know About The Complete Process

Abu Dhabi is the capital and also the biggest city in the United Arab Emirates (UAE). It is also one of the most prosperous and dynamic cities in the Middle East, with a diverse and multicultural population. You can find many opportunities for entrepreneurs who want to start or expand their businesses in  Abu Dhabi or this region in general.

In this article, we will explore some of the advantages of initiating a business in Abu Dhabi, as well as the steps you need to follow to set up your company. The emirate has a diverse and dynamic business landscape that offers many opportunities for investors and entrepreneurs.

Understanding Abu Dhabi’s Business Landscape

Business in Abu Dhabi

Abu Dhabi has a rich history of trade and commerce, dating back to its role as a pearl diving and fishing hub in the Arabian Gulf. Today, the emirate is home to some of the world’s largest sovereign wealth funds. For example, the Abu Dhabi Investment Authority and Mubadala Investment Company. Which invest heavily in various sectors, both at home and abroad.

The economy is not only dependent on oil and gas production but also on other sectors. Such as, financial services, manufacturing, construction, tourism, and renewable energy. The emirate has been launching several initiatives to diversify its economy and attract foreign direct investment. Such as, the Abu Dhabi Economic Vision 2030, the Abu Dhabi Global Market, and the Hub71.

The Abu Dhabi Economic Vision 2030 is a strategic plan that aims to transform the emirate into a knowledge-based economy that fosters innovation, competitiveness, and social inclusion. The plan sets out targets for increasing the contribution of non-oil sectors to GDP. This enhances human capital development and improving infrastructure and environment. Furthermore, it also and strengthens governance and efficiency.

Some of these big entrepreneurships or business in Abu Dhabi are:

  • The Abu Dhabi Global Market (ADGM) is an international financial center that offers a favorable regulatory framework. Additionally, a common law jurisdiction, and a range of financial services and products. Moreover, the ADGM also hosts the ADGM Academy. Which provides education and training programs for professionals in finance, law, business, and technology.
  • The Hub71 is a tech ecosystem that supports startups and entrepreneurs in Abu Dhabi. The Hub71 offers access to funding, mentorship, talent, and the best business opportunities. Also, a vibrant community of peers and partners. The Hub71 also collaborates with leading global institutions. Such as Microsoft, SoftBank Vision Fund, MIT Enterprise Forum, and Techstars.

Advantages of Initiating a Business in Abu Dhabi

Abu Dhabi has a strategic location that connects Asia, Europe and Africa. It has a well-developed infrastructure, including modern roads, airports, ports and telecommunications. It also has a stable and supportive government that provides various incentives and benefits for investors. Such as:

  • A tax-free environment

With no income tax, corporate tax or value-added tax (VAT) for most sectors. This means that you will be able to keep more of your profits and reinvest in your business.

  • A free trade zone

Where you can enjoy 100% foreign ownership, no customs duties, no currency restrictions and no minimum capital requirements. This means that you have more freedom and flexibility to run your business as you wish.

  • A competitive labor market

With a skilled and educated workforce, as well as flexible visa policies and labor laws. This means that you can easily find and hire qualified employees for your business.

  • A high quality of life

With a safe and secure environment, excellent healthcare and education facilities, and a rich cultural and social scene. This means that you and your employees can enjoy living and working in Abu Dhabi.

Different Investments Opportunities

These advantages make Abu Dhabi an attractive destination for investors from different sectors and industries. Some of the best business ideas in Abu Dhabi:

  • Oil and gas

Abu Dhabi is one of the world’s largest producers and exporters of oil and gas. It has abundant natural resources and advanced technology to support this sector.

  • Renewable energy

Abu Dhabi has a commitment to develop renewable energy sources. Such as solar, wind and nuclear power. It has established the Masdar City project, which aims to be the world’s first carbon-neutral city.

  • Tourism

Abu Dhabi is a popular tourist destination, with many attractions and events, such as the Sheikh Zayed Grand Mosque, the Louvre Abu Dhabi Museum, the Yas Island theme park and the Formula One Grand Prix.

  • Financial services

Abu Dhabi is a regional hub for financial services, with a strong banking system and a growing capital market. It has established the Abu Dhabi Global Market (ADGM). Which is an international financial center that offers a range of services and products.

  • Technology

Abu Dhabi is investing in innovation and technology. With a focus on artificial intelligence, biotechnology, aerospace and defense. It has been establishing the Khalifa University of Science and Technology (KUST). Which is a leading research institution that collaborates with global partners.

How to Start a Business in Abu Dhabi

Business in Abu Dhabi

The first step to start business in Abu Dhabi is to decide what type of business activity you want to engage in. There are three main categories of business ideas in Abu Dhabi:

  • Commercial

This includes trading, retailing, contracting, importing and exporting goods and services. For example, you can open a shop, a restaurant or a construction company.

  • Industrial

This includes manufacturing, processing, assembling and repairing goods and products. For example, you can produce furniture, clothing or electronics.

  • Professional

This includes providing consultancy, advisory, technical or educational services. For example, you can offer legal, accounting or engineering services for your Abu Dhabi business opportunity.

You will need to choose whether you want to operate as a sole proprietorship, a partnership or a limited liability company (LLC). Each type has its own advantages and disadvantages, depending on your business goals and needs.

A sole proprietorship is the easiest form of business structure there. It means that you are the sole owner and operator of your business. You will have full control over your business choices and profits. However, you also have full liability for your business debts and obligations.

A partnership is a form of business structure where two or more people share the ownership and management of a business. Additionally, you need to have a written partnership agreement that specifies the roles and responsibilities.

A limited liability company (LLC) is the most common form of business structure in Abu Dhabi. It means that you have one or more shareholders who own shares in your company. Your company has its own legal identity and can sue or be sued in its own name. Your shareholders have limitation of liability for your company’s debts and obligations. Additionally, need to have a memorandum of association that outlines the rules and regulations of your company.

Understand Ownership Structure

The next step is to understand the ownership structure of your business. In general, there are two options:

  • Local sponsorship

This means that you need to have a local partner who owns at least 51% of your business. The local partner can be a sole investor or also a corporate entity instead. This option is suitable for businesses that require a commercial or an industrial license. The advantages of this option are that you can access the local market and benefit from the local partner’s connections and expertise. However, the disadvantages are that you have to share your profits and decision-making power with the local partner. You may face some legal and cultural challenges while entering UAE market and setting up your business in Abu Dhabi.

  • Free Zone Company

This means that you can have 100% foreign ownership of your business. However, you can only operate within the free zone area, where you obtain your license. This option is suitable for businesses that require a professional or a service license. The advantages of this option are that you have more autonomy and flexibility to run your business as you wish, and you can enjoy various incentives and benefits from the free zone authority. However, the disadvantages are that you may have limited access to the local market and face some restrictions on your business activities.

Business Name Registration

The third step is to register your business name with the Department of Economic Development (DED) in Abu Dhabi. You need to submit an application form with the following documents:

  • A copy of your passport or ID card
  • Copy of your local partner’s passport or ID card (if applicable)
  • Letter from your local partner stating their consent to use their name as part of your business name (if applicable)
  • A letter from the free zone authority stating your approval to use their name as part of your business name (if applicable)
  • Fee of AED 200

Nonetheless you will also need to check the availability of your desired business in Abu Dhabi name on the DED website. Finally, you can choose up to three names for your business.

Avail Initial Approval

The fourth step is to avail the initial approval from the DED. This is a preliminary approval that allows you to proceed with the rest of the procedures. You need to submit an application form with the following documents:

  • A copy of your passport or ID card
  • Copy of your local partner’s passport or ID card (if applicable)
  • A copy of your business in Abu Dhabi name registration certificate
  • A detailed description of your business activity
  • Fee of AED 100

Moreover, you will receive an initial approval certificate within one working day approximately.

Obtain Trade License

The fifth step is to obtain a trade license from the DED. This is a final approval that allows you to start operating your business legally. You need to submit an application form with the following documents:

  • A copy of your initial approval certificate
  • Copy of your memorandum of association (if applicable)
  • A copy of your lease agreement or tenancy contract for your office premises
  • Copy of any other approvals or permits required for your specific business activity (such as health, environment, tourism, etc.)
  • A fee of AED 500
  • Proving that you have a bank account for your business

However, you will receive a trade license within three working days to finally start business in Abu Dhabi. Additionally, you could even start a business in Dubai or any other city of the UAE


How to start a business in Abu Dhabi can be a rewarding and profitable venture. However, it requires careful planning and preparation. You need to understand the legal and regulatory requirements, as well as the market conditions and opportunities. You also need to seek professional advice from experts who can guide you through the process.

Furthermore, by following these steps, you can set up your business in Abu Dhabi successfully and efficiently. However, if you need more information on the market in the country, feel free of contacting us through our website.

The Complete Guide for LLC Company Formation in Dubai

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