Economic license registrations in the UAE have seen a sharp acceleration since 2023. By late 2024, the country recorded over 1.5 million active commercial licenses, marking a historic high in business activity. This surge has been fueled by a combination of legal reforms, digital transformation initiatives, and rising demand across key sectors such as e-commerce, general trading, and logistics. Official records show that more than 200,000 new economic licenses were issued in 2024 alone, underscoring the UAE’s sustained momentum in business formation nationwide.
UAE-Wide Growth
In 2024, the UAE issued around 200,000 new economic licenses nationwide. According to official reports, Abu Dhabi saw its mainland new license count rise 16% (vs. 2023) and renewals rise 27% (exact totals were not published). Sharjah’s Economic Development Department reported 3,752 new licenses and 30,910 renewals in just the first half of 2024 (with Q3 adding another 2,137 new and 15,844 renewed, for a Q3 total of 17,981 licenses). Ajman’s DED recorded a 16% jump in issued licenses (no raw total given) alongside 131,380 renewals in 2024. Fujairah’s Chamber of Commerce reported 1,375 new trade licenses and 10,128 renewed licenses in 2024.
Economic licenses have seen consistent year-on-year growth across both mainland jurisdictions and free zones. Dubai continues to account for the largest share of new license issuances, followed by Abu Dhabi and Sharjah. Other emirates saw even steeper jumps – Ajman’s DED recorded a 15% increase in active licenses in H1 2024 (to 37,755), and Ras Al Khaimah reported a 28.6% rise in commercial licenses in the first nine months of 2024.
The growth is not limited to the mainland. Free zones across the UAE have also reported a steady rise in new company formations, particularly in sectors that benefit from tax exemptions and simplified regulatory processes.
Top Sectors for New Business Registrations
In 2024, the majority of new trade license registrations in the UAE were concentrated in the e-commerce and related retail sectors. Official data indicate that online retailing led all sectors with approximately 4,700 new licenses, accounting for around 30% of total new registrations. The construction sector followed with 2,300 new licenses, while general wholesale and retail trade recorded 2,000. Other high-performing categories included import activities with 1,850 licenses, export trade with 1,210, cold and hot beverage outlets with 1,200, real estate leasing and management with 1,110, restaurants with 900, and heavy goods trucking with 800.
Key Enablers of Growth
Several factors have contributed to the surge in business licenses:
- Reforms in foreign ownership laws: The allowance of 100% foreign ownership across most economic sectors has dramatically simplified the setup process for international investors.
- Streamlined licensing procedures: Digital portals such as Dubai’s Invest in Dubai and Abu Dhabi’s TAMM have enabled quicker registration and renewals, often within hours.
- Special license categories: Micro-business licenses, freelancer permits, and no-premises-required options have made business formation more accessible.
- Long-term residency: Investors who establish or contribute significantly to the local economy are eligible for long-term encouraging more permanent business relocation.
Long-term Business Licenses
The UAE is considering the introduction of long-term business licenses—specifically, a 10-year “Golden Business License” and a 5-year “Silver Business License”—offered at competitive prices. Currently, most business licenses in the UAE are valid for one year and require annual renewal. The proposed long-term licenses would reduce administrative burdens for businesses, allowing for more strategic planning and stability.
While specific eligibility criteria for these licenses have not been disclosed, the move is expected to benefit a wide range of businesses, from startups to multinational corporations, by providing operational certainty and potentially lowering administrative costs.
Some UAE free zones have already begun offering multi-year license options tied to visa packages, with 3- and 5-year durations available to eligible businesses. These models offer early indications of the potential benefits of longer-term arrangements, including simplified renewals and lower compliance costs.
This development follows the success of the UAE’s 10-year Golden Visa program, introduced in 2019, which has been instrumental in attracting investors, entrepreneurs, and skilled professionals to the country.
Simplified Mainland Business Licenses
Flexible licensing models across the UAE—such as Ras Al Khaimah’s Chance License, and Abu Dhabi’s Tajer and Mobdea Licenses—are playing a strategic role in accelerating new business registrations. These initiatives are designed to lower entry barriers, support micro-entrepreneurship, and align with national goals to diversify the economy and empower SMEs:
- Chance License (Ras Al Khaimah):
- Issued by RAK DED, it allows individuals to operate home-based businesses.
- Covers over 60 professional and craft activities including fashion design, marketing consultancy, and gift packaging.
- Open to all nationalities and residents of Ras Al Khaimah, with licensing fees set at AED 1,500 per year.
- Tajer License (Abu Dhabi):
- Enables UAE nationals and residents to establish businesses without the need for a physical office.
- Encourages digital and home-based startups across a broad range of sectors offering 1,200 activities.
- Reduces administrative burdens, making business setup more accessible.
- Mobdea License (Abu Dhabi):
- Tailored for Emirati women-led ventures.
- Provides licensing for 50 economic activities, allowing up to two activities to be included under a single license.
- Contributes to gender inclusion in the SME landscape.
Outlook
While full-year data for 2025 are not yet available, current trends point to sustained license growth. The government’s strategic agenda (e.g. “We the UAE 2031”) emphasizes innovation and investment, and authorities continue rolling out favorable regulations.
Many analysts expect the number of new business licenses to remain high through 2025, underpinned by the legal, economic policies, and targeted government initiatives aimed at adapting to the UAE’s evolving, innovation-driven economy.
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