The United Arab Emirates added 250,000 new companies in 2025, pushing the total number of registered businesses in the country to more than 1.4 million, as the nation sets its sights on reaching two million companies over the next decade.
The update was shared by Abdulla bin Touq Al Marri, Minister of Economy and Tourism, during a media briefing on amendments to the Commercial Companies Law. He said the reforms introduced since September 2021 have played a central role in attracting investment and accelerating business growth across multiple sectors.
760,000 New Firms Since the 2021 Law Reforms
According to the minister, nearly 760,000 companies have been established since the Commercial Companies Law was introduced, marking a 118.7 percent increase in the total number of companies operating in the UAE. A major contributor has been the rapid expansion of small and medium enterprises (SMEs) owned by UAE nationals, which have grown by 63 percent over the past five years.
This surge in business registration has also supported job creation and population growth. The UAE's population reached 11.51 million by the end of 2025, up from 11.02 million the previous year — an increase of around half a million people.
UAE Economy Grows 5% in 2025
The UAE economy recorded 5 percent growth in 2025, driven largely by non-oil sectors, which accounted for 77.5 percent of economic output by mid-year. Flexible economic policies, updated business laws, and support for emerging sectors were cited as key growth drivers.
Looking ahead, ICAEW forecasts the UAE's GDP to grow by 5.6 percent in 2026, supported by tourism, trade, logistics, real estate, and financial services, alongside strong domestic demand.
Tourism and Intellectual Property on the Rise
Tourism's contribution to GDP more than doubled in four years, reaching 15 percent in 2025, valued at Dh291 billion. Meanwhile, the UAE registered 37,794 trademarks and 3,595 intellectual property works last year, reflecting rising investor confidence and a vibrant, innovation-driven business environment.
The 2035 target of two million registered companies underscores the UAE's ambition to remain one of the world's most attractive destinations for business formation and foreign direct investment.
