UAE Surpasses 1.4 Million Registered Companies
- 09.01.2026
- Posted by: Uwe Hohmann
- Categories: Dubai, Middle East
According to recent figures from the MoET (Ministry of Economy and Tourism), the UAE now hosts more than 1.4 million companies, a remarkable 118.7 percent increase from the first half of 2021.
A Year of Strong Business Growth
Since the Commercial Companies Law came into force in September 2021, approximately 760,000 new companies have registered in the UAE through the end of 2025. In 2025 alone, around 250,000 businesses were established nationwide.
This surge is not limited to foreign investors. SMEs (Small and Medium Enterprises) owned by UAE nationals have grown by 63 percent over the past five years, demonstrating strong local entrepreneurial activity alongside international interest.
What the New Amendments Mean for Business Owners
The Ministry of Economy and Tourism recently held a briefing to outline Federal Decree-Law No. 20 of 2025, which amends Federal Decree-Law No. 32 of 2021 concerning Commercial Companies. These changes are designed to enhance flexibility, reduce costs, and support long-term business sustainability.
One of the most notable updates is the introduction of multiple share classes for LLCs (Limited Liability Companies). Previously, this option was largely restricted to public joint stock companies. The UAE is now among the first countries in the Middle East to extend this flexibility to LLCs, giving business owners more control over ownership structures and shareholder relationships.
Simplified Company Transfers Across Jurisdictions
Another major change will allow companies to transfer their registration within the UAE mainland and free zones, without the need for liquidation or re-establishment. This means a business can relocate while retaining its original legal identity, contracts, and obligations.
For entrepreneurs and investors operating across multiple jurisdictions within the UAE, this represents a significant reduction in administrative burden and compliance costs. It also supports business continuity and easier access to new markets and financing opportunities.
Expected Impact on Company Registrations
The Ministry anticipates that these amendments will drive a 10-15 percent increase in company registrations and licences within the first year of implementation. This projection underscores the government’s confidence in the reforms and their appeal to both local and international businesses.
Broader Economy Impact
The UAE economy is projected to grow by 5 percent in 2025, supported by the continued expansion of non-oil sectors, which now contribute 77.5 percent of GDP (Gross Domestic Product). The tourism sector alone has seen its contribution rise from 6 percent in 2021 to 15 percent, reaching a total value of AED 291 billion.
Intellectual property activity has also accelerated. In 2025, nearly 37,794 trademarks were registered, a 74 percent increase over the previous four years. Additionally, 3,595 works were registered under intellectual property protections, marking a 124 percent growth during the same period.
Comprehensive UAE Business Solutions
These are recent developments, and the full implementation details are still emerging. Our team at TME Services is actively monitoring this legislation and will continue to keep our clients informed as further guidance and practical procedures become available.
Whether you are considering company formation in Dubai, restructuring an existing business, or exploring options to relocate between free zones, these legislative updates create new opportunities worth exploring.
Our comprehensive services are designed to support you every step of your business journey in the UAE:
- Company Formation: We guide you through all aspects of setting up your company, whether in a free zone or on the mainland, ensuring you choose the best option for your business.
- Visa and Emirates ID Services: We streamline the process of securing visas and Emirates IDs for you and your employees, allowing you to focus on your business operations.
- Accounting: Our team ensures your business stays compliant with local financial regulations, which is crucial for maintaining good standing in Dubai’s business community.
- Tax: We help manage Dubai’s tax environment, ensuring your business remains compliant while optimizing your tax position.
- Compliance and AML : We help ensure your business remains compliant with UAE laws and regulatory requirements while assisting in the implementation, maintenance, and training of AML (Anti-Money Laundering) procedures in line with national and international standards.
- Business Consulting: Leveraging our deep understanding of Dubai’s market, we provide valuable insights and help you develop effective strategies to succeed.
Visit our services page to learn more about everything we do.
