Abu Dhabi’s Business Scene in 2025: What You Need to Know to Start Your Venture
Abu Dhabi is quickly establishing itself as one of the most promising business hubs in the Middle East. While long known for its energy sector, the capital of the UAE is undergoing a major shift—diversifying its economy, modernising infrastructure, and creating new opportunities for local and international entrepreneurs alike.
If you’re considering starting a venture in Abu Dhabi in 2025, here’s what you need to know to get started on the right foot.
A Diversified, Forward-Looking Economy
Abu Dhabi’s long-term economic strategy focuses on building a knowledge-based economy and reducing reliance on oil. This is reflected in:
- Investments in priority sectors such as fintech, renewable energy, healthcare, logistics, and AI.
- Government support through initiatives like the Abu Dhabi Investment Office (ADIO), offering funding, incentives, and market access.
- Continued rollout of Vision 2030 programs focused on innovation, sustainability, and global competitiveness.
The emirate is not just open to business—it is actively shaping a space where businesses can thrive long-term.
Mainland vs Free Zone: Choosing Your Jurisdiction
Abu Dhabi offers flexibility in how businesses are structured, depending on the sector and scale of operations.
- Free Zones such as Abu Dhabi Global Market (ADGM), Masdar City, and KIZAD offer benefits like 100% foreign ownership, tax exemptions, and simplified processes.
- ADGM is ideal for financial services and fintech startups.
- Masdar City targets clean tech and sustainability-driven ventures.
- KIZAD supports logistics and manufacturing industries.
- Mainland setup allows direct access to the UAE market, including the ability to work with government clients. In most sectors, 100% foreign ownership is now allowed, removing earlier restrictions and attracting more entrepreneurs to the mainland.
Infrastructure Built for Scale
Abu Dhabi continues to invest heavily in its physical and digital infrastructure, ensuring it meets the needs of modern businesses.
- Major upgrades in logistics, such as Etihad Rail and Abu Dhabi Airport’s expansion, improve connectivity across the UAE and GCC.
- The city’s position as a link between the East and West, plus proximity to markets like Saudi Arabia and Africa, makes it a strategic base for regional expansion.
- Business districts like Al Maryah Island and Al Reem Island are emerging as thriving commercial hubs with state-of-the-art facilities.
Business Costs and Regulatory Landscape
Abu Dhabi’s licensing system is designed to attract startups and SMEs while maintaining regulatory clarity.
- Free zones offer competitive setup packages, with some licenses starting at relatively low costs for service-based activities.
- The unified economic license, introduced to streamline operations across multiple activities, improves ease of doing business.
- The UAE has introduced a 9% corporate tax on profits exceeding AED 375,000. However, many free zone businesses continue to enjoy tax benefits, provided they meet qualifying conditions.
- There is still no personal income tax, adding to the city’s appeal for founders and professionals.
Entrepreneurial Support and Access to Talent
Entrepreneurs in Abu Dhabi benefit from an ecosystem that is increasingly geared toward innovation and collaboration.
- Hub71, based in ADGM, supports startups by connecting them with venture capital, corporates, and government support. Incentives include subsidised office space and housing for selected startups.
- The emirate boasts a skilled, diverse workforce, supported by institutions like NYU Abu Dhabi, Sorbonne University, and Khalifa University.
- Legal reforms, strong intellectual property protection, and dispute resolution mechanisms make Abu Dhabi a trusted business environment.
What to Know Before You Launch
Before setting up your company, take the time to:
- Research your sector’s legal and commercial landscape
- Identify the most suitable jurisdiction based on your business activity and long-term goals
- Assess startup costs, including licensing, visa fees, and office space
- Consult a business setup advisor—like Setup in Abu Dhabi—to simplify your registration and compliance journey
Doing this groundwork can significantly reduce friction and help your venture start strong.
Final Thoughts: Why Partner with Setup in Abu Dhabi
Abu Dhabi in 2025 is more than a capital city—it’s a launchpad for businesses that want to grow with purpose, scale sustainably, and reach regional and global markets. Whether you’re building a fintech solution, launching a sustainable brand, or entering professional services, the opportunities are abundant. With the right guidance, now is a smart time to turn your idea into a real business in Abu Dhabi.
At Setup in Abu Dhabi, we support entrepreneurs, SMEs, and large organisations through every step of the setup journey. From choosing the right jurisdiction and legal structure to banking, tax, HR, office space, and funding—we provide the expertise and resources to help your business start strong and stay ahead in one of the region’s most competitive markets.