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You’re paying 45% tax on your UK earnings whilst watching your profits disappear. Every year, the tax burden grows heavier, regulations get tighter, and growth becomes harder. But what if there’s a place where you keep more of what you earn, pay just 9% corporate tax, and access markets worth billions?
Abu Dhabi makes this real. In 2024 alone, UK company memberships at the Abu Dhabi Chamber jumped 47% year-on-year. Over 5,000 British businesses now operate across the emirate, with investments exceeding £20 billion. They’re not running away from problems. They’re running towards genuine opportunities that the UK simply cannot match anymore.
This guide walks you through everything about business setup in Abu Dhabi. You’ll learn the exact costs, timelines, legal steps, and how UK entrepreneurs are building thriving companies in the UAE capital.
The movement of UK business owners to Abu Dhabi is clearly reflected in recent economic growth. During the first half of 2025, Abu Dhabi’s economy grew to AED 597.4 billion, rising 3.63% overall. The non-oil sector led the growth with a 6.37% increase.
For UK entrepreneurs, three key factors are driving the decision to set up a business in Abu Dhabi:
Tax savings
The UK charges 25% corporate tax plus personal income tax up to 45%. Abu Dhabi charge just 9% corporate tax on profits over AED 375,000 (about £81,000) and qualifying Free Zone companies pay 0%. Personal income tax remains zero.
A UK business owner earning £200,000 annually saves roughly £50,000 in tax by relocating. That’s money reinvested in growth, not sent to HMRC.
100% ownership without local partners
Abu Dhabi has permitted 100% foreign ownership across most industries since 2021, removing the need for local sponsors or partners.
Access to 2 billion consumers
Abu Dhabi offers businesses access to over two billion consumers within a four-hour flight, thanks to the UAE’s strong global connectivity. The proposed UK-GCC free trade agreement could further boost trade between the two regions, making early market entry especially valuable. Many British companies are drawn to Abu Dhabi for its economic stability and steady growth.
Abu Dhabi continues to grow steadily with firm government support, even as Dubai attracts most of the attention. ADGM recorded strong performance in early 2025, with new licenses up by 47% and assets under management increasing by 42%.
Recent data shows UK companies are active across financial services, hospitality, energy, ICT, tourism, manufacturing, and healthcare. The relationship between the UK and Abu Dhabi strengthens as more British entrepreneurs discover what a successful business setup in Abu Dhabi offers.
Business setup in Abu Dhabi offers three main pathways. Your choice shapes operational flexibility, costs, and growth potential.
Mainland companies operate under UAE federal law and trade freely across all seven emirates. This works well for businesses targeting local customers, government contracts, or UAE-wide operations.
Key benefits:
This option works well for retail businesses, contractors, consultants, hospitality companies, and any firm targeting the UAE local market.
ADDED now offers a two-year license for just AED 1,000 (about £215), allowing up to six activities under one license. This makes the mainland business setup in Abu Dhabi surprisingly affordable for qualifying businesses.
From ADGM to KIZAD, Masdar City, and the Airport Free Zone, Abu Dhabi’s Free Zones are tailored for different sectors and make it easier to start and operate a business with tax benefits in place. Free Zone benefits are:
| Free Zone | Starting Cost | Best For | Key Advantage |
|---|---|---|---|
| ADGM | AED 22,000 | Financial services, fintech | English common law system |
| KIZAD | AED 16,000 | Manufacturing, logistics | Port access, industrial base |
| Masdar City | AED 15,000 | Clean tech, renewable energy | Sustainability ecosystem |
| ADAFZ | AED 15,000 | Aviation, cargo | Airport proximity |
Important note: Free Zone companies typically cannot trade directly with the UAE mainland without additional licenses. Your business model determines whether these matters.
Offshore entities suit businesses focused purely on international operations outside the UAE. These structures offer asset protection and confidentiality but cannot conduct business within the UAE market.
Ideal for: International holding companies, intellectual property management, global trading operations, and wealth structuring.
Abu Dhabi’s economic shift creates strong opportunities for UK entrepreneurs with the right skills. The government actively supports finance, energy transition, manufacturing, and advanced technology. Its AED 13 billion Digital Strategy (2025-2027) aims to build the world’s first AI-native government.
Financial services and fintech
ADGM recorded a 47% rise in registered financial institutions in 2025, showing real market growth. UK firms with expertise in regulation, compliance, and fintech innovation find strong demand.
Manufacturing and industry
Since the launch of the Industrial Strategy in 2022, Abu Dhabi has seen industrial GDP rise by 23%, with enterprises growing by 19.4%. Incentives continue to support specialised manufacturing and high-value production.
Clean technology and renewable energy
Masdar City’s focus on sustainability creates clear opportunities for UK clean-tech companies. The UAE’s net-zero goals drive demand for British engineering solutions.
Professional services
As Abu Dhabi diversifies, demand rises for accounting, legal, HR, consulting, and advisory services. UK credentials such as ACCA and RICS hold strong value.
Healthcare and life sciences
Abu Dhabi’s health sector grew 5.2% in Q1 2025. Population growth and government investment increase demand for medical technology, specialists, and healthcare management.
UK-Specific Advantages
UAE investments in the UK exceed £20 billion, building trust and familiarity. Many British firms already succeed in Abu Dhabi, creating networks and proof of success.
English is widely used, removing language barriers. ADGM’s English common-law system feels familiar. Business culture matches British standards of professionalism and quality.
With the UK–GCC free trade agreement progressing in 2026, UAE businesses trading with the UK are preparing for upcoming tariff relief and more efficient border formalities. UK companies that establish operations in Abu Dhabi now will be positioned to benefit as soon as the agreement takes effect. Current International Trade Centre data highlights strong export opportunities in precious metals, plastics, cosmetics, metals, and food items such as dates and halal products, sectors where both markets can grow together.
Business setup in Abu Dhabi requires following a structured sequence managed mainly through ADDED (Department of Economic Development) or Free Zone authorities, with full completion often taking 1-4 weeks when prepared correctly.
Step 1: Choose your business activity
Define your primary business activity precisely, as Abu Dhabi groups them into commercial, professional, industrial, or tourism types, each influencing the license, capital needs, and permissions required. Use the Department of Economic Development’s extensive activity list to align your model, such as mainland for local market access, KIZAD Free Zone for manufacturing, or ADGM for international finance, with the right setup.
Select a legal form like sole establishment, LLC (now supporting full foreign ownership in most cases), branch, or representative office, confirming it fits ownership and funding rules.
Step 2: Reserve Your Trade Name
Submit your business name on the TAMM platform. The name must follow UAE rules and should not include offensive words, restricted terms, or existing company names. Approval usually takes 1-3 working days. Get initial approval from ADDED or the relevant Free Zone based on your business activity and company structure.
Step 3: Office setup and permissions
Set up your office based on your license type. Mainland businesses need a physical office, while Free Zones offer flexible options. Register the rental contract under Tawtheeq. If your activity needs special approval, such as healthcare or tourism, apply for that first.
Step 4: Submit your application
Prepare passport copies, proof of address, a business plan, bank reference, and qualification certificates if required. Partnerships must also submit a notarised MoA. Submit the complete package to ADDED for mainland or Free Zone portals, pay fees, and receive your trade license in 3-5 days (faster in Free Zones).
Step 5: Register your trade with the Chamber
Mainland businesses must register with the Chamber of Commerce after receiving their license.
Step 6: After the license is issued
Open a company bank account. Banks will ask for personal visits and business details. This usually takes 2 to 6 weeks.
Apply for residence visas for owners, employees, and family members. Each work visa usually costs between AED 3,000 and 7,000.
Register for corporate tax: 9% tax applies on profits above AED 375,000. Some Free Zone companies may be exempt.
Business setup in Abu Dhabi involves predictable expenses, though exact figures depend on your jurisdiction and requirements.
Mainland Costs
Mainland companies must maintain a physical office and follow standard regulatory and visa procedures. Business owners gain the advantage of wider activity options, eligibility for government tenders, and the ability to secure more visas as office space increases. Some promotional licensing schemes still exist for smaller businesses, though only for specific qualifying categories.
Free Zone Costs
Free Zone licenses begin at AED 9,000 to AED 15,000, with overall costs reaching AED 50,000+ depending on the zone and activity type.
Timeline matters for planning. Business setup in Abu Dhabi typically takes 4-8 weeks from start to finish, depending on complexity.
Week 1-2: Business planning and structure selection
Week 2-3: Name reservation and initial approvals (2-3 days processing)
Week 3-5: Documentation preparation and license application (3-5 days processing for Free Zones)
Week 5-8: Bank account opening (2-6 weeks) and visa processing (1-2 weeks)
Fast-track option: The Instant License programme allows certain business activities to start quickly through TAMM platform. Ideal for service-based businesses and startups. Processing can complete within 2 steps for qualifying activities.
Factors affecting timeline:
Working with Stratrich consultants typically reduces the timeline by handling multiple steps simultaneously and avoiding common delays.
The optimal emirate choice depends on your client base location. B2B services aimed at the Abu Dhabi government and corporate clients are best established in Abu Dhabi. Meanwhile, e-commerce businesses selling throughout the GCC can operate in either emirate.
Budget constraints favour Abu Dhabi’s lower costs for early-stage ventures. A £50,000 setup budget stretches further in Abu Dhabi than in Dubai.
Industry ecosystem also matters for networking and partnerships.
Business setup in Abu Dhabi isn’t just a tax strategy. It’s a growth platform that UK businesses can no longer ignore. With non-oil GDP now contributing 56.8% of the emirate’s total economic output and foreign investment surging, the question shifts from “Should I consider Abu Dhabi?” to “How quickly can I establish there?”
Abu Dhabi’s setup process is well-defined and offers good value, particularly for business owners looking to escape the rising pressures of the UK market. Whether your priority is market reach, tax efficiency, or a specialised activity, you’ll find a structure that supports long-term growth.
Start by defining your business activity and target market clearly. Research whether mainland or Free Zone better serves your model. Engage professional consultants who navigate the process daily. Their fees represent insurance against costly mistakes and extended delays.
UK entrepreneurs who moved to Abu Dhabi in 2024 aren’t running from problems. They’re running toward opportunities. With proper preparation and realistic expectations, your business can join them.
Ready to explore business setup in Abu Dhabi? Connect with Stratrich business setup consultants specialising in UK entrepreneur needs.
