The UAE has set an ambitious goal of hosting two million active companies by the end of the next decade. This target reflects the UAE’s attempt at becoming one of the world’s leading places to start, grow, and scale a business.

The announcement, which was made by the UAE’s Minister of Economy and Tourism, Abdulla bin Touq Al Marri, comes at a time when the UAE continues to roll out major legal and regulatory reforms, including changes to company laws, visas, and foreign ownership rules. Together, these measures are reshaping the business landscape and making entrepreneurship more accessible than ever.

Strong Growth Already Underway

The numbers show that this vision is not just aspirational. Since the introduction of the UAE’s updated Commercial Companies Law in September 2021, the country has welcomed nearly 760,000 new companies, bringing the total number of registered businesses to over 1.4 million.

In 2025 alone, around 250,000 new companies were established. Small and medium-sized (SME) enterprises owned by UAE nationals have also grown rapidly, increasing by 63% over the past five years. This demonstrates strong confidence in the economy from both local entrepreneurs and international investors.

Why the Commercial Companies Law matters

The Commercial Companies Law has been a turning point for doing business in the UAE. One of its most significant changes was allowing 100% foreign ownership in many sectors. Previously, foreign investors often needed a local partner to set up on the mainland. This is no longer the case for most activities.

The law also simplified company formation, strengthened corporate governance rules, and improved protection for investors and shareholders. In practical terms, this means clearer rules and greater certainty for business owners.

For startups and growing companies, these changes lower the cost and complexity of entering the market, making it easier to raise investment and expand operations.

What Does it Mean to be an ‘Emirati Company’?

A recent amendment to the Commercial Companies Law introduced a concept described as granting ‘citizenship’ to companies. While the term has attracted attention, the UAE Minister of Economy clarified that this does not grant citizenship to business owners or investors.

Rather, it means that any company established in the UAE is recognised as an Emirati company, whether it is set up on the mainland or in a free zone. This aligns with global practice.

Being recognised as an Emirati company brings important commercial benefits. One key advantage is access to the UAE’s growing network of Comprehensive Economic Partnership Agreements (CEPAs). The UAE has signed more than a dozen CEPAs with countries such as India, Turkey, and Indonesia. These agreements reduce tariffs and simplify customs procedures. UAE-based companies can therefore trade more easily and competitively in international markets.

Mainland and Free Zones

Growth is being seen across mainland companies, free zones, startups, and international firms. Free zones continue to attract sector-specific businesses in areas such as technology and finance due to tailored regulations and infrastructure.

Mainland reforms have made it easier for businesses to operate across the wider UAE market.

Why Global Businesses are Choosing the UAE

Beyond legal reforms, the UAE offers practical advantages that appeal to businesses worldwide. These include a stable political and economic environment, modern infrastructure, and a strategic location connecting Asia, Europe, and Africa.

Many international companies now use the UAE as their regional headquarters, managing operations across the Middle East, Africa, and South Asia from a single base. For entrepreneurs, the country’s strong banking system, access to talent, and supportive government initiatives create an environment where businesses can scale fast.

What This Means For Entrepreneurs and Investors

The push towards two million companies shows continued support for entrepreneurship.

Entrepreneurs benefit from simplified licensing, modern laws, and global market access. Foreign investors gain from full ownership and legal certainty. These reforms position the UAE as a global hub for business and innovation.