UAE aims to become home to 2 million companies in the next decade

Dubai: The UAE is targeting two million companies by the end of the decade, as sweeping reforms to the Commercial Companies Law aim to make the country one of the world’s most attractive destinations for businesses, investors and entrepreneurs.

The goal was outlined by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, during a media briefing on the latest amendments to the UAE’s company law.

The new changes are expected to drive faster business growth, attract foreign investment and make it easier for companies to set up, expand and operate across the UAE.

The UAE’s business base has already seen rapid expansion.

Since the issuance of the Commercial Companies Law in September 2021 until the end of 2025, the UAE has attracted nearly 760,000 new companies, bringing the total number of active companies to more than 1.4 million – a growth of 118.7 per cent.

In 2025 alone, around 250,000 new companies were established, underlining strong confidence in the UAE economy.

“We will continue working to increase the number of companies to reach two million by the next decade,” Al Marri said.

The Commercial Companies Law, issued in September 2021, was a turning point for the UAE’s business environment.

It introduced 100 per cent foreign ownership in many sectors, it simplified company formation procedures, developed stronger corporate governance rules, and provided greater protection for investors and shareholders.

These changes significantly lowered barriers to entry for international businesses and entrepreneurs.

According to the Minister, the UAE’s appeal is being driven by a mix of policy reform and practical advantages, including a stable political and economic environment and a strategic location connecting East and West.

For many companies, the UAE is now the preferred base for regional headquarters and expansion.

Growth is being seen across mainland companies, free zone entities, startups, small businesses, and regional and international firms

Free zones continue to attract sector-focused businesses in technology, finance, logistics, media, healthcare and manufacturing. At the same time, mainland reforms have made it easier for companies to operate across the wider market.