Abu Dhabi, the capital of the United Arab Emirates (UAE), is renowned for its business-friendly environment. Leading this charge is the Abu Dhabi Department of Economic Development (ADDED), which is simplifying business processes. Today, the emirate is cementing its position as an accelerator of growth for all businesses.
Streamlined business processes
Recently, ADDED has forged a strategic partnership with the Abu Dhabi Free Zones Council to launch the Unified Economic License. This initiative aims to boost the emirate’s competitiveness as the ideal destination for investors.
Through this program, ADDED is unifying the procedures required to register economic licenses across Abu Dhabi and all its free zones. This also aligns with the department’s digitalization efforts. With the launch of the unified license, investors can enjoy a faster digital setup for their businesses.
This new endeavor attests to the synergy among the different entities in Abu Dhabi’s economic ecosystem — and this synergy involves not just government agencies but the private sector as well. Coupled with the emirate’s cutting-edge infrastructure, this lets Abu Dhabi solidify its standing as a sought-after global business hub, attracting everyone from locals to foreigners, large multinational corporations to fast-growing startups.
Recently, Abu Dhabi was named the fastest-growing emerging startup ecosystem in the MENA region, jumping 15 spots compared to the previous year. The emirate’s ecosystem created $4.2 billion in Ecosystem Value from 1 July 2021 to 31 December 2023, representing 28 percent compound annual growth compared to the same period between 2019 and 2021. The report further highlighted key players in Abu Dhabi’s ecosystem, including ADDED, Abu Dhabi Global Market (ADGM), Mubadala Investment Company, ADQ, the Abu Dhabi Investment Office (ADIO), and Hub71, an Abu Dhabi-based global tech ecosystem of startups and investors.
In Abu Dhabi, the process of setting up a business starts and ends at ADDED, with the help of the unified license process. Nonetheless, it will depend on the completeness of the business application, the nature of the business, and its legal structure.
Various lucrative sectors
Abu Dhabi’s transformation into a smart, diversified, and sustainable economy, driven by the “Falcon Economy” initiatives, has firmly established the emirate as a preferred destination for talent, investment, and business. The latest census results highlight this advancement, revealing an impressive 59 percent growth in the non-oil sectors over the last ten years. This expansion has also boosted the non-oil sector’s share of GDP from 46 percent in 2011 to 54 percent currently. In addition, there has been a 109 percent rise in high-skilled talent and a 300 percent increase in foreign investments.
Abu Dhabi’s economic evolution is well underway, with a strong commitment to sustainability evident in ADDED’s initiatives. These efforts are further laying the groundwork for a prosperous and environmentally responsible future by promoting diversification, innovation, and a circular economy. Recognizing the need for a skilled and adaptable workforce, the Abu Dhabi Golden Visa plays a crucial role in this transformative journey.
By attracting top-tier professionals and thinkers from around the globe, the Abu Dhabi Golden Visa program ensures that the brightest minds are contributing to Abu Dhabi’s vision of a greener and more sustainable future. These experts bring essential skills, knowledge, and innovative thinking that drive Abu Dhabi’s sustainability goals, and these talents are integral to the Emirate’s strategic ambitions.
Read more: Abu Dhabi named smartest city in MENA region
Abu Dhabi’s appeal is further enhanced by its business-friendly ecosystem. Its welcoming environment acts as a bridge to different continents and markets. Additionally, Abu Dhabi has been recognized as the world’s safest city for eight years in a row, highlighting the emirate’s high level of safety and quality of life. Moreover, Abu Dhabi provides an ideal environment for individuals and families to move and settle, with over 200 nationalities calling it home. The community enjoys one of the highest standards of living in the region, featuring top-tier healthcare, education, infrastructure, and commerce, making it the perfect destination to live, work, invest, and visit. Moreover, as one of the fastest-growing economies in the Middle East and North Africa (MENA), Abu Dhabi contributed over 65 percent of the UAE’s national GDP in 2023.
However, Abu Dhabi’s forward-looking vision seeks to further diversify its economy and focus on key economic sectors that will build a better future for generations to come, while attracting investors from all over the world.
The Abu Dhabi Industrial Strategy (ADIS) focuses on developing key sub-sectors, including chemicals, pharmaceuticals, electrical, electronics, food processing, machinery and equipment, and transportation. ADIS considers these sectors pivotal to Abu Dhabi’s economic diversification.
Fueling Abu Dhabi’s economic diversification
Also, with the vision of making Abu Dhabi the most competitive industrial hub in the region, ADIS offers local and international investors opportunities for partnerships and access to funding.
In support of this, ADDED recently released a new guide detailing high-growth investment opportunities in Abu Dhabi’s transportation industries. This guide further enables domestic and international investors to participate in a sector projected to reach a combined market size of AED 11.04 billion ($3 billion) by 2027.
Moreover, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, has approved the launch of the AgriFood Growth and Water Abundance (AGWA) cluster. This initiative offers numerous investment opportunities in the agrifood and water sectors. By 2045, AGWA is projected to contribute AED 90 billion to Abu Dhabi’s GDP, create over 60,000 new jobs, and attract AED 128 billion in investments.
The launch of the AGWA cluster follows the unveiling of the Smart and Autonomous Vehicle Industries (SAVI) cluster in October 2023. The SAVI cluster aims to boost the UAE economy by $24.5 billion to $32.7 billion, focusing on advancing smart and autonomous vehicles for air, land, and sea.
These forward-looking initiatives attract investments and contribute to long-term economic growth and job creation aligned with global sustainability goals, underlining Abu Dhabi’s commitment to sustainability.
Industrial sector boost
Abu Dhabi has also heavily emphasized on supporting the ‘Make It In the Emirates’ initiative and the National In-Country Value Program (ICV) to attract investors and enhance its industrial sector.
Furthermore, the ICV program enables the Ministry of Industry and Advanced Technology to improve the industrial sector’s performance and sustainability. In the past few years, the program has been instrumental in building local industries through foreign investment.
Complementing this, the Abu Dhabi Local Content Program supports the goals of ADIS by contributing to the growth of the non-oil GDP. This program — which also aims to accelerate the shift toward a knowledge-based economy, enhance technology adoption, and increase Emiratization rates — rewards ICV certificate-holding companies prioritizing local production and supply chains.
ICV strengthens Abu Dhabi’s sustainability efforts by strategically localizing supply chains and fostering the development of new industries and services. ICV-certified companies also gain unique opportunities for government tenders and projects.
Note that ADIS aims to double the size of the manufacturing sector to AED 172 billion and create 13,600 skilled jobs. Additionally, it seeks to increase Abu Dhabi’s non-oil exports to 143 percent, reaching AED 178.8 billion by 2031.
Etihad Rail, a landmark project, will play a pivotal part in boosting the emirate’s industrial and manufacturing industries. Once completed, the rail will link all seven emirates and transport more than 36 million people. Its freight trains can carry 60 million tonnes of goods every year.
Going digital
Amid all these developments, the Abu Dhabi government also recognizes the importance of digitization and artificial intelligence (AI) — and how they can change how businesses and individuals work.
Between 2021 and 2023, the Business & Economics Intelligence Sector at the Abu Dhabi Chamber of Commerce and Industry reported a compound annual growth rate of 67 percent in the number of AI companies registered in Abu Dhabi. The establishment of the Mohamed Bin Zayed University of Artificial Intelligence (MBZUAI) supports this growth by fostering innovation and developing top talent.
The unveiling of the Abu Dhabi Government Services Unified Platform, TAMM, is also a notable development. The platform offers over 750 services from over 30 government entities and private sector providers, making government services more accessible and efficient for consumers. This commitment to digital transformation and AI integration underscores Abu Dhabi’s proactive approach to creating a collaborative and secure digital ecosystem — and making life easier for consumers.
Abu Dhabi is including AI in its vision of the economy’s future, leveraging innovative tools to better serve key sectors such as healthcare, transportation, research, and logistics.
Abu Dhabi stands at the forefront of economic innovation and growth, driven by its proactive strategies and business-friendly environment spearheaded by ADDED.
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