The United Arab Emirates has set an ambitious target to host two million registered companies by the end of the decade, reinforcing its position as one of the world’s most attractive destinations for business, investment, and entrepreneurship.
The goal was outlined by Abdulla bin Touq Al Marri, UAE Minister of Economy and Tourism, as part of the government’s broader strategy to lower barriers to entry and accelerate private-sector growth through sweeping legal and regulatory reforms.
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Rapid Growth in Business Formation
The UAE’s business ecosystem has already witnessed remarkable expansion over the past few years. Since the implementation of key amendments to the Commercial Companies Law in September 2021, approximately 760,000 new companies have been established across the country.
By the end of 2025, the total number of active businesses in the UAE had crossed 1.4 million, representing growth of nearly 119% in just four years. In 2025 alone, an estimated 250,000 new companies were registered, reflecting strong investor confidence and sustained economic momentum.
Commercial Companies Law: A Turning Point
The updated Commercial Companies Law is widely regarded as a game-changer for the UAE’s business environment. Among its most impactful reforms are:
- 100% foreign ownership across a wide range of sectors
- Simplified company formation procedures, reducing setup time and administrative hurdles
- Enhanced corporate governance frameworks
- Stronger protections for investors and shareholders
These changes have significantly lowered entry barriers for international businesses and entrepreneurs, making it easier to establish, operate, and scale operations within the UAE.
Why Businesses are Choosing the UAE
According to government officials, the UAE’s growing appeal is driven by a combination of policy reform and structural advantages, including:
- A stable political and economic environment
- A strategic geographic location connecting East and West
- World-class infrastructure and logistics networks
- A business-friendly regulatory framework across mainland and free zones
As a result, the UAE is increasingly being chosen as a regional headquarters and expansion base for multinational corporations, startups, SMEs, and family-owned enterprises alike.
Growth Across All Business Segments
The surge in company registrations is not limited to a single sector or jurisdiction. Growth is being recorded across:
- Mainland companies
- Free zone entities
- Startups and small businesses
- Regional and international firms
This diversified expansion highlights the depth and resilience of the UAE’s economic model.
With continued reforms, digitalisation of government services, and a strong focus on attracting foreign investment, the UAE’s target of two million companies by 2030 appears increasingly achievable.
For entrepreneurs, investors, and global businesses seeking a stable, forward-looking base for regional or international operations, the UAE continues to set the benchmark as a premier global business hub.
