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UAE's commercial law reforms set to double company registrations by 2028
The UAE will achieve 2 million companies registration target ahead of schedule
- PUBLISHED: Tue 3 Feb 2026, 8:00 AM
- By:
- Muzaffar Rizvi
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Ease of doing business, sweeping visa reforms, attractive tax incentives, minimal bureaucracy and world class infrastructure will continue to act as a magnet for foreign investors and local businesses alike. These factors are expected to help the UAE hit its ambitious target of registering two million companies by 2028 — two years ahead of schedule in 2030, experts say.
The goal, outlined by Minister of Economy and Tourism Abdulla bin Touq Al Marri during a recent media briefing on the latest amendments to the Commercial Companies Law, is poised to give the UAE economy a further shot in the arm, especially after attracting nearly 760,000 new companies since the law came into force in September 2021 and through the end of 2025. In 2025 alone, around 250,000 new companies set up shop in the country, pushing the total number of active firms to more than 1.4 million.
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The Commercial Companies Law, described as a game changer, was rolled out in the post pandemic period and has opened the door wider for business expansion. By allowing 100% foreign ownership in many sectors, simplifying company formation procedures, strengthening corporate governance and offering greater investor protection, the legislation has set the stage for robust growth across the business landscape.
“For many companies and business groups, the UAE has become the go to hub for regional headquarters and expansion. The latest amendments to the law have lowered the bar for entry, making it far easier for international businesses and entrepreneurs to establish a foothold in the market,” experts added.
The UAE’s long term residency options, including the Golden Visa and expansions to employment and freelance visa categories, have also helped attract entrepreneurs, remote workers and global talent. Business leaders say these reforms have contributed to a surge in start ups, SMEs and professional service firms setting up in the country.
“Investors want clarity, stability and predictability,” said a corporate advisory consultant based in Dubai. “The UAE has been ticking those boxes consistently, especially with its focus on digital government services and reducing administrative bottlenecks.”
Infrastructure investment has been another draw. With advanced logistics networks, world class airports and ports, and a rapidly evolving digital ecosystem, the country continues to position itself as a global trade and innovation hub. Economic diversification under the UAE’s national agenda has further stimulated sectors such as fintech, manufacturing, renewable energy and advanced technology.
Officials say maintaining this momentum will be critical to achieving the two million company milestone by 2028. Additional regulatory updates are expected, particularly those aimed at supporting digital commerce, intellectual property protection and sustainable business practices. For now, analysts believe the trajectory remains positive.
“The fundamentals are strong. If reforms continue at the current pace, the UAE is well on track to reach — and possibly exceed — its company registration target much ahead of 2030,” according to another senior corporate executive.
Saad Maniar , CEO- Baker Tilly (UAE), said achieving the goal of two million companies in the UAE is realistic, thanks to its progressive business environment and supportive government policies.
“The flexibility in visa regulations and attractive tax incentives provide significant advantages for entrepreneurs and investors. The country’s advanced infrastructure further streamlines business operations and helps companies scale efficiently,” Maniar told BTR.
However, he said certain bureaucratic procedures can still slow down the pace of new registrations. “Addressing these procedural bottlenecks and introducing more alternatives can make the process smoother and more appealing. Continued reforms and digitalisation in government services will play a vital role in reaching this target ahead of schedule.
Atik Munshi, Managing Partner at the business consultancy FinExpertiza UAE, said during the last 5 years, UAE has witnessed a steep growth in the number of businesses licenses issued, this was fuelled by the overall boost in various sectors including real estate. “Achieving another 600,000 companies in the next five years seems very likely and I personally believe that UAE will surpass the two million mark much ahead of 2030,” Munshi told BTR.
He said the key attractions are safety and security, low tax rates, very low level of bureaucracy, good options for healthcare and education, long-term visas, top line infrastructure, etc.
“One other major draw is the poor economic performance and high taxes in other parts of the world particularly in Europe and the western world at large which has triggered the HNWI migration into the UAE. The wealthy among the sub-continent also find the low tax environmental very attractive,” he said.
Shivkumar Rohira, CEO (EMEA), Klay Group, said the UAE will achieve its 2 million companies target ahead of 2030 deadline.
“Given the UAE’s proven track record in delivering on ambitious growth targets, coupled with the current momentum in company formation, the probability of reaching 2 million companies before 2030 remains strongly positive,” Rohira told BTR.
Rohira said structural reforms and pro-growth policies have enabled the UAE to attract talent and capital, accelerating non oil GDP growth to over 6% in the last four years.
Following are the main sectors of focus:
UAE is among the leading adaptors of AI and investing in AI Infrastructure and related energy infrastructure. The country aims to become a leading nation in AI by 2031.
Real estate will continue as one of the key pillar of the economy.
Financial services growth in both financial centre's, ADGM and DIFC, have seen material growth in number of registered companies since 2020
The UAE targets tourism CAGR of 9.4% by 2031, further developing Dubai and Abu Dhabi as the tourist & connectivity hubs of choice for global travellers.
Energy sector Strategy 2050 has a clear focus on decarbonization with targets reaching Net Zero in energy and water by 2050 fueled by renewable and clean energy
Ravi Krishnan, Chief Executive of Ascent Partners, said it is very likely that the UAE will exceed two million registered companies in early 2028.
“Over the past four years, the UAE has been averaging 200,000 companies a year, with 250,000 companies registered in 2025 alone,” Krishnan told BTR.
Potential Growth Sectors
Munshi said the UAE has also achieved a good growth in both the resident population and floating population over the last few years. This has made the local market pie much bigger. “Despite of the substantial increase in the property sector, the UAE still faces a dearth of affordable housing, this is one area of potential. Education, service sectors in taxes, compliance advisory, fund management, investments too seem to have good future.
In additioin, companies may choose Dubai/UAE for their white-collar talent retention or attraction due to the restrictions of visas in the US.
“In view of increase in the number of properties, maintenance companies and interior design companies are expected to fare well,” he said.
Krishnan of Ascent Partners said technology, financial services, manufacturing, healthcare and logistics are the top sectors attracting investment from overseas.
Maniar of Baker Tilly (UAE) said here is growing enthusiasm in the UAE for sectors such as consulting, banking and insurance, hospitality, real estate, and wealth management. He was of the opinion that consulting firms are thriving due to the demand for expert advice in business transformation and strategy. The banking and insurance sector attracts significant foreign capital, driven by regulatory modernization and financial innovation.
“Hospitality continues to flourish, supported by the UAE’s status as a global tourism hotspot. Real Estate remains a magnet for investment owing to iconic developments and robust market dynamics. Wealth Management is seeing heightened activity as both local and international investors seek secure, diversified portfolios in a stable economic climate,” he said.
Challenges for Corporate Sector
Krishnan of Ascent Partners said macroeconomics, geopolitics, regulation and access to financing will be major determinants of company registration and business expansion in the UAE.
Munshi of FinExpertiza UAE said the UAE too will have it’s share of challenges due to increase in the number of companies. “Competition would be fierce. As compliance requirements are increasing day by day, the cost of compliance and reporting would be an additional burden to business houses.”
“Rising overall costs could be a major threat to startups and individuals and hence increased costs of products/services is likely, he said.
Rohira of Klay Group said AI Bubble bursting could materially slow down investment in data centres and AI related infrastructure.
“A prolonged financial market downturn would impact the growth in financial services sector while adverse geopolitical conditions could impact the attractiveness of UAE as a tourist and connectivity hub,” he said.
Maniar of Baker Tilly (UAE) said one of the major constraints is the size of the market, which limits opportunities for some companies to expand rapidly. In addition, navigating certain regulatory and procedural requirements can be complex, often necessitating specialised support. Securing necessary permits and fulfilling compliance standards may delay or complicate the registration process.
“Rising operational costs, such as real estate, wages, and utilities, are becoming an increasing concern for both new and existing businesses. These escalations can impact profit margins and discourage smaller enterprises from entering the market. To overcome these challenges, greater transparency, streamlined procedures, and targeted incentives will be crucial for sustaining growth in the UAE’s corporate landscape,” Maniar concluded.
MAJOR CHANGES TO HELP ATTRACT MORE COMPANIES
The Ministry of Economy expects that amendments in Commercial Companies Law will boost company registrations and licenses by 10–15% in the first year. Major changes include:
Multiple classes of shares in Limited Liability Companies and Joint Stock Companies are now allowed
Free zone companies are now allowed to open branches on the mainland
Companies are permitted to transfer their registration between emirates and free zones without losing legal identity
More explicit rules introduced for shareholder exits, mergers and acquisitions
Introducing non-profit commercial companies
Atik Munshi, Managing Partner at the business consultancy FinExpertiza UAE, said the recent amendment in the UAE Commercial Companies Law has taken care of many practical issues faced by UAE companies particularly the Limited Liability Companies.
“Many companies in UAE require different class of shares (voting/non voting, liquidation rights, dividend rights, etc.) which were not earlier available, under the new amendment, companies can choose different class of shares to satisfy their individual requirements,” he said.
He said the amendments also permit non-profit companies albeit with certain conditions while private Joint Stock Companies now have the liberty to go for private funding through private subscriptions.
“Migration between different emirates for onshore companies and financial free zone companies are now permissible. Earlier, one would have to liquidate the entity in the said emirate and establish a new one in the selected emirate,” he said.
Another major aspect, which is particularly used in mergers and acquisitions transactions, like drag-along or tag-along provisions are now formalised under the new amendment.
“The amendment also addresses continuity of businesses due to death of a partner,” Munshi said.
