How To Launch A Startup In Abu Dhabi

Abu Dhabi, the capital of the United Arab Emirates (UAE) is famed for its wealth and state-of-the-art infrastructure. The emirate exudes luxury and is home to iconic landmarks like the Sheikh Zayed Grand Mosque and Louvre Abu Dhabi. Every year, thousands of Formula 1 fans flock there to watch the Grand Prix Abu Dhabi in action.

As the largest of the seven emirates that make up the UAE, Abu Dhabi’s innovations in tourism, finance, oil and gas have gained global recognition. The emirate heavily invests in sustainable energy with plenty of smart city initiatives dotted around it.

Abu Dhabi is steeped in its Emirati culture and is a bit more conservative than other emirates like Dubai. Nonetheless, its exclusive resorts and pristine beaches continue to attract tourists from all over the world.

It has also emerged as a top destination for startups and entrepreneurs thanks to its robust economy and support from the government.

 

 

Why Start A Business In Abu Dhabi?

 

According to StartupBlink, Abu Dhabi has 110 startups which represent 9% of the UAE’s new ventures. It is probably one of the most startup-friendly emirates in the UAE, with incubators, funding programs, co-working spaces to help early-stage startups find their feet.

Although Abu Dhabi is known for its oil, with its GDP exceeding $250 billion, the emirate is diversifying its economy. Recently, the government has invested more into technology, healthcare and finance.

Businesses policies have also changed in recent years in an attempt to attract foreign entrepreneurs. Founders can now own 100% of their business in most industries, whereas this wasn’t the case previously.

The UAE has implemented a 9% corporate tax rate since 2023 but most of the free zones still offer tax incentives for entrepreneurs to benefit from.

 

Industries With High-Growth Potential In Abu Dhabi

 

While there is an extensive list of industries that have the potential to do well in Abu Dhabi, these are a few of the standout ones.

Technology and AI: Artificial intelligence has a heavy presence in the UAE, more specifically cloud computing and cybersecurity.

Renewable energy: Masdar City, a community pioneering sustainability and clean energy in Abu Dhabi is leading the way for other startups in the renewable energy sector. The government also offers incentives for startups in the clean energy space.

Tourism and hospitality: Abu Dhabi attracts around 39.3 million tourists a year, creating more than 37,000 jobs in the tourism sector. Entrepreneurs can take advantage of this by building luxury hotels, rentals, restaurants or entertainment centres.

E-commerce and logistics: You can have almost anything delivered right to your door, so there is certainly enough demand in this sector.

 

Accelerators And Incubators For Startups

 

Let’s take a look at some of the top accelerator and incubator programs for entrepreneurs to participate in around Abu Dhabi.

Flat6Labs Abu Dhabi: This organisation provides seed funding, training and opportunities to network for startups specifically in the tech industry.

Hub71: This is Abu Dhabi’s leading startup ecosystem, created to offer guidance, workspaces and access to funding for entrepreneurs.

Khalifa Fund For Enterprise Development: Emirati entrepreneurs and small to medium size enterprises (SMEs) can benefit from financing and support.

StartAD: This accelerator program is run out of NYU Abu Dhabi to help support early-stage startups.

Plug And Play ADGM: This global platform helps to connect startup founders with investors and potential corporate partners.

 

 

Funding Opportunities For Startups

 

If you’re looking for funding for your startup in Abu Dhabi, there are multiple avenues that you can look into.

Government funding: The Abu Dhabi Investment Office (ADIO) offers incentives and is willing to invest into startups who can show that they have high-impact potential.

Venture capital or private investments: Mubadala Ventures is Abu Dhabi’s sovereign wealth fund that invests in high-growth ventures like Shorooq Partners is a leading VC firm to support early-stage startups. For tech startups that are highly scalable, Global Ventures is another option.

 

Visa Requirements For Entrepreneurs

 

Those who want to either invest in or start a business will need to apply for a relevant visa to be able to work and live in Abu Dhabi. Here are some of the most common options to choose from.

Investor Visa: This is issued to business owners but will require an investment amount into a company before being approved.

Freelance Visa: Available for self-employed individuals who wish to work from Abu Dhabi.

Golden Visa: This is a long-term residency program ranging from 5 to 10 years available to investors, entrepreneurs and skilled professionals.

If you are setting up your business in a free zone, you can apply for your visa through your free zone authorities. If its a mainland company, the visa is processed through the Abu Dhabi Department of Economic Development as well as the Federal Authority for Identity, Citizenship, Customs and Port Security.

When applying for a visa, you will typically need to provide a business license, proof of investment, copies of your passport, tests to show that you are medically fit and an Emirates ID registration.

 

How To Start A Business In Abu Dhabi

 

If you are planning on starting a business in Abu Dhabi, here is a step-by-step guide on the registration process.

 

Choose your business activity and structure

 

The first step is to decide which business type and industry you want to operate in, and check that they align with the regulations of Abu Dhabi. After this, you can choose your business structure.

Mainland company: These allow you to operate across the UAE and you are governed by local regulations.

Free zone company: Running a company in a UAE free zone allows 100% foreign ownership along with tax benefits and is generally easier to set up for example, in Masdar City.

Offshore company: This would be the ideal choice if you plan to trade internationally.

 

Register the business name

 

If your business name complies with UAE regulations, you can then register it with the Abu Dhabi Department of Economic Development.

 

Apply for licenses

 

A trade license will be required for all businesses. Some industries like fintech and healthcare require specialised licenses which you will need to obtain before you can run your business. For those who offer consulting or digital services, you can apply for a freelance license.

 

Find an office space

 

If you are running your business in a free zone, there are flexible workspace options to choose from. If you have a mainland business, you will be required to have a physical office.

 

Apply for visas and open a bank account

 

The next step is to apply for a business visa for yourself and for your employees if you require staff. You can then open up a business bank account to manage company finances through ADCB, FAB or HSBC.

 

Should You Start A Business In Abu Dhabi?

 

Abu Dhabi is an exciting dynamic business environment, and we can expect to see innovative startups emerging in the future. Startup founders can benefit from government support along with guidance from other entrepreneurs.

If you can leverage the emirate’s resources in technology or sustainability, you are well-positioned to scale your startup rapidly. Running your business in Abu Dhabi can be the stepping stone you need to expand to the rest of the UAE, and even internationally.

Good luck!