Abu Dhabi Sees 21% Rise in New Economic Licences in Q1 2026
Abu Dhabi recorded a significant 21% year-on-year increase in new economic licences during the first quarter of 2026, alongside substantial growth in its financial centre and across various business sectors.
Abu Dhabi experienced a 21% year-on-year increase in new economic licences during the first quarter of 2026, according to official figures from the Abu Dhabi Registration Authority (ADRA), the regulatory arm of the Abu Dhabi Department of Economic Development (ADDED). This surge indicates growing confidence in the emirate's regulatory framework and business ecosystem.
Broad-Based Growth Across Sectors
The growth in economic licences was widespread, with the total number of active licences across the emirate increasing by 12%. Notable rises include:
- Professional licences: up 193%
- Freelance licences: up 261%
- Commercial licences: up 20%
- Tajer Abu Dhabi licences: up 17%
- Agriculture, fisheries, and livestock activities licences: up 5%
The expansion extended geographically, with new economic licences in the Al Ain Region rising 58% and the Al Dhafra Region by 28%, complementing an 18% increase within Abu Dhabi city itself. Industrially, licences entering the production phase grew 3%, with 34 new industrial facilities becoming operational in Q1 2026.
Abu Dhabi Global Market (ADGM) Continues Strong Growth
Abu Dhabi Global Market (ADGM), the emirate's international financial centre operating under English common law, also reported robust performance. Its total active licences exceeded 13,353 in Q1 2026, with 961 issued during that quarter alone. Other key figures for ADGM include:
- Assets under management: grew 57%
- Operational entities: rose 34.52% to 3,741
- Financial services entities: increased 30% to 365
- Asset and fund managers: reached 179, up 24%
- Total funds managed: rose 43% to 263
- Workforce: expanded 44% to 47,047
Asset managers establishing a presence in ADGM during 2026 collectively manage over USD 4.4 trillion in global assets.
Business Setup Options and Regulatory Environment
Business setup consultancy Savvy Setup notes that founders are drawn to Abu Dhabi's framework, particularly for professional services, funds, and industrial ventures. The emirate offers two main routes for establishment: the mainland, regulated by ADDED, and the common-law framework of ADGM. The choice depends on factors like business activity, substance requirements, client base, and long-term plans.
The UAE-wide regulatory environment provides no personal income tax for residents and a 9% federal corporate tax applicable only above AED 375,000 of taxable income. Also, 100% foreign ownership is available across both mainland and free-zone structures.
Questions, answered
- What was the total increase in new economic licences in Abu Dhabi during Q1 2026?
- Official figures indicate a **21% year-on-year increase** in new economic licences across Abu Dhabi during the first quarter of 2026, as reported by the Abu Dhabi Registration Authority (ADRA).
- Which specific licence categories saw significant growth?
- Professional licences rose by 193%, freelance licences by 261%, and commercial licences by 20%. Licences in agriculture, fisheries, and livestock activities also increased by 5%, while Tajer Abu Dhabi licences grew by 17%.
- How did the Abu Dhabi Global Market (ADGM) perform in Q1 2026?
- ADGM surpassed **13,353 active licences**, with 961 issued in Q1 alone. Assets under management grew 57%, operational entities increased to 3,741 (up 34.52%), and the workforce expanded by 44% to 47,047.
- What are the primary business setup routes in Abu Dhabi?
- Founders can choose between the mainland route, regulated by the Abu Dhabi Department of Economic Development (ADDED), or the common-law framework of the Abu Dhabi Global Market (ADGM), depending on their business activity and long-term plans.
- What are the key tax benefits for businesses in the UAE?
- The UAE offers **no personal income tax** for residents and a **9% federal corporate tax** that applies only to taxable income above AED 375,000. Also, 100% foreign ownership is permitted across both mainland and free-zone structures.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.
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