Together with economic advantages, Abu Dhabi offers a nonpareil lifestyle quality and has had great success in transforming itself into a vivacious metropolis in a short space of time. Industry leading infrastructure and most significantly, the financial benefits for businesses, have made Abu Dhabi the perfect location for expatriates, investors, entrepreneurs, and start-ups as well as multi-national companies.
World class infrastructure and business environment internationally attracts entrepreneurs into Abu Dhabi and the United Arab Emirates (UAE). This attraction of talent into the region is generating an economic boom with all the new businesses that are coming to fruition. Abu Dhabi is creating a supportive ecosystem for start-ups and entrepreneurs in terms of cost, incubators, reducing restrictions and requirements.
Visa Availability:
A number of entry visas and permits have been designed to encourage entrepreneurs and businesses to explore establishing a startup in Abu Dhabi. The freelancer, etrader and work remote visas are just some examples which enable individual expatriates to legally work in Abu Dhabi. These visas are a prime example of a way prospective businesses can enter the market and setup operations out of the Emirate. The Entrepreneur and Investor category of Golden Visa offers a longer-term visa option. There are eligibility requirements for the 10-year visa including, earning a minimum AED30,000/month salary, or having a company valued at AED500,000 in capital/assets, or investments in property with a fixed deposit account or UAE investments of AED2 million. Any one of these eligibility criteria could mean a business owner can obtain an Entrepreneur/Investor Golden Visa.
Business Set Up:
When selecting the business activities for an Abu Dhabi entity, companies can elect to group activities so that they can encompass all the activities the businesses can facilitate under one license. This enables businesses to engage all their goods and services into the market under one establishment. It also means that, along with other regulatory approvals, the process of applying with the Department of Economic Development (DED) is relatively easy and expedited.
Abu Dhabi also has cost incentives which appeal to businesses with differing budget capabilities and generally have made large efforts to reduce costs of doing business to attract more companies to the emirate.
- Government Fee Reductions
The government fees for setting up in Abu Dhabi have been lowered in recent years, from previously AED30,000 reduced to approximately AED5,000.
- No Office Space Requirement/ Virtual Office Space
From last year, in mainland Abu Dhabi, there is a specific activities list for companies that can setup without the need for a physical office space, which will be a massive saving and incentive for the small and medium-sized enterprise (SME) businesses that qualify.
For freezones, such as the Abu Dhabi Global Market (ADGM) or twofour54, a virtual office will suffice for the first two visas and will similarly not require a physical office space. However, there will still be a fee and requirement for the virtual office space. PRO Partner Group has also experienced in a few instances, that companies have been able to renew year 2 and 3 with no office space (but only when they have, for example, no staff or only one visa) but generally the usually high costs for office spaces in other emirates make Abu Dhabi an appealing option for smaller businesses.
- Health Insurance for Individuals
Abu Dhabi has reduced the costs for health insurance as of February 2023. Individuals earning more than AED5,000/month can take advantage of the new scheme. The basic plan costing as little as AED750 a year, with a cover limit of up to AED150,000.
The new Health Insurance policy means that factors which would normally effect the cost of health care such as age or previous underlying health conditions and claims, do not have as great an effect on the cost of health insurance in Abu Dhabi as prior.
Supportive Infrastructure and Incubators:
Abu Dhabi has created a particularly opportunistic environment for SMEs to establish themselves in, through a variety of available funding or other incubators/programmes available for business support such as free marketing tools. The ecosystem for Abu Dhabi’s startups has seen growth of 102% in the last year, with over 200 in 2022 – creating jobs and contributing significantly to the region’s economy.
