The Ministry of Economy and Tourism reported that nearly 760,000 new companies registered across the country since the Commercial Companies Law took effect in September 2021, producing an increase of 118.7 per cent that lifted the total number of active businesses above 1.4 million by the close of 2025. Ministry figures show that 2025 alone accounted for about 250,000 of those registrations, underlining continued momentum in investor registrations on both the mainland and in free zones. The pace of expansion has drawn participation from startups, small enterprises and international groups seeking to establish regional operations.
Amendments to the Commercial Companies Law simplified formation procedures while introducing 100 per cent foreign ownership in many sectors, stronger corporate governance standards and enhanced safeguards for investors and shareholders, according to the ministry. Those changes lowered entry barriers and improved the overall business environment, the ministry assessment found. Growth has since appeared across multiple formats, including mainland licences, free-zone entities and businesses focused on technology, finance, logistics and manufacturing.
SMEs owned by UAE nationals expanded by 63 per cent over the past five years, the ministry data indicated. A separate Ministry of Economy and Tourism review placed the contribution of non-oil activities at a record 77.3 per cent of real GDP during the first quarter of 2025, with those sectors expanding 5.3 per cent to reach AED 352 billion. The diversification trend has been accompanied by real GDP growth of 3.9 per cent in that period.
Abdulla bin Touq Al Marri, Minister of Economy and Tourism, outlined a target of two million companies by the end of the decade. “We will continue working to increase the number of companies to reach two million by the next decade,” Al Marri said. The minister delivered the update during a media briefing held on the sidelines of the Make it in the Emirates forum.
Al Marri attributed the inbound interest to a combination of policy reforms, a stable political and economic climate, and the UAE’s strategic position linking major markets in the East and West. The ministry noted that many organisations now view the country as their preferred base for regional headquarters. Free zones have drawn specialised operators while mainland regulatory adjustments have eased cross-market activity.
The ministry’s longer-term economic blueprint, aligned with the We the UAE 2031 vision, seeks to expand overall GDP toward AED 3 trillion within the coming decade. Officials continue to refine licensing processes and investment frameworks to sustain the inflow of new businesses. Further amendments now under discussion are expected to accelerate company formation and attract additional foreign capital.
