Abu Dhabi Investor Guide 2021a
Abu Dhabi Investor Guide 2021a
Abu Dhabi Investor Guide 2021a
investinabudhabi.gov.ae
Abu Dhabi
Investor
Guide
2 Investor Guide
Contents
Introduction 03
Real estate 23
Talent acquisition 29
Economic data 31
Investor ecosystem 32
Get in touch 34
Legal Disclaimer 35
3 Investor Guide
Introduction
Welcome to Abu Dhabi
Capital of the United Arab Emirates, Abu Dhabi is a business in Abu Dhabi, including recruiting the best talent,
global business hub and one of the Arab world’s largest engaging a financial partner and tapping into the emirate’s
and wealthiest economies. More than 1.48 million people rich innovation ecosystem.
across 200 nationalities call Abu Dhabi home and we
welcome over 11 million tourists into the emirate each The Abu Dhabi Investment Office (ADIO) team are here to
year, making Abu Dhabi a thriving and exciting destination support your journey, providing you with a comprehensive
for your business and your family. range of services to accelerate your establishment and
long-term success.
Abu Dhabi’s vibrant economy, stable political system,
world-class infrastructure, strategic location and business- In Abu Dhabi, we consider ourselves one big family - a
friendly regulatory environment make it one of the world’s family built on support and optimism. We look forward
top destinations for investment. The emirate’s increasingly to helping you start your journey in the emirate and
diverse economy offers a proven expansion ground and a welcoming you to our family.
gateway that nurtures innovation and long-term success.
In this guide, we will walk you through the steps you need Get ready to start your future in Abu Dhabi. Today.
to take to launch and grow your business in the emirate,
starting from choosing a place of incorporation through
to becoming a member of the Abu Dhabi Chamber of
Commerce and Industry.
The second part of the guide will help you operate your
4 Investor Guide
Address
We are committed to offering comprehensive support
to your business through our Investor Care services and 9th Floor, Al Khatem Tower,
programmes. We will assist your business at every stage Al Maryah island,
of its setup and growth to help you make the most of the Abu Dhabi, UAE
opportunities here in Abu Dhabi and realise your local,
regional and international business ambitions. For more information:
investinabudhabi.ae
5 Investor Guide
Data
Providing information on all aspects of
doing business in Abu Dhabi, including
data on the economy and focus sectors
Networks
Connecting innovation-focused
companies to the Abu Dhabi ecosystem
and investment opportunities
Real estate
Identifying cost-effective solutions for
office space, industrial activities and
connection to brokers for employee
accommodation
Setting up a business
in Abu Dhabi
Abu Dhabi is ranked 1st in the Middle East for “Ease of Doing Business”
and 12th internationally1. The journey to opening your business in
Abu Dhabi is simple:
01 02 03
Choosing a place Choosing a type Choose a type
of incorporation of economic activity of legal form
04 05 06
Registering a Obtaining an Registering with
trade name economic licence Abu Dhabi Chamber of
Commerce and Industry
Choosing a place of
incorporation
01
Choosing a place
The first step to starting your journey is selecting one of two available options
of incorporation
to the location for the incorporation of your company. This can be onshore
(UAE mainland) or offshore (one of five free zones).
02 Whether you choose to setup in the UAE Mainland or Free Zone, your company
will enjoy 0% corporate income tax.
Choosing a type
of economic activity Selecting a place of incorporation will define your setup and operational process
in the future.
03
Choosing a type
of legal form
04
Registering a
trade name
05
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
8 Investor Guide
UAE mainland
01
The UAE mainland is any place in the territory of the emirate, except for the five
recognised free zones.
Choosing a place A company registered on the mainland can perform activities across the
of incorporation entirety of the UAE. This includes conducting business with federal and local
governmental bodies without the involvement of a local commercial agent or
02
national agent.
03 Please note:
04
2018). New thresholds for UAE ownership (if any) will be determined
by the UAE Federal Cabinet, following recommendations from an inter-
emirate committee (comprising members of a number of governmental
Registering a departments from each emirate). The committee was established to
trade name propose which economic activities/sectors shall permit 100% foreign
investor ownership and which economic activities/sectors are of a
‘strategic impact’ such that 100% foreign ownership will not be permitted.
05 • Market participants in the UAE expect that in the first half of 2021, the
relevant authorities will circulate further details about the activities deemed
Obtaining an to have a ‘strategic impact’; and other emirate-by-emirate implementation
economic licence measures, so that all stakeholders (and foreign investors) will have further
clarity on how this major change in UAE corporate governance will be
implemented going forward.
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
9 Investor Guide
01
agent, providing full foreign ownership of onshore companies2 .
02
• Certain specified sectors, including oil and gas exploration, utilities and
transport
• Companies that are precluded from direct foreign ownership by virtue of
Choosing a type UAE Cabinet decision
of economic activity • Companies that are wholly owned by federal or local government or their
subsidiaries
Choosing a type
of legal form
04
Registering a
trade name
05
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
Free zones
01 Companies registered in one of Abu Dhabi’s five free zones receive a number of
economic benefits, guaranteed by the government:
Choosing a place
of incorporation • Full foreign ownership, as well as full repatriation of profits and capital
• Zero taxes are guaranteed for a period of at least 15 years
• Dual licensing, enabling companies based in a free zone to do business
02 •
with UAE mainland entities
The import and export of goods in free zones is exempt from
customs duties
Choosing a type
of economic activity
03
Choosing a type
of legal form
04
Registering a
trade name
Abu Dhabi Global Market (ADGM)
05
An award-winning financial free zone located on Al Maryah Island, it plays a
pivotal role in positioning Abu Dhabi as a global centre for business and finance.
06 • Retail
01
urban communities.
04 twofour54
Registering a Set up in 2008, this dynamic media free zone provides the infrastructure and
trade name 360 support services for international, regional and local media businesses.
twofour54 is a destination for creative companies in Media, Broadcast, Gaming
and Communication and offers everything from customisable office space,
05
world-class production facilities to business support services.
Choosing a type of
economic activity
01
Choosing a place
Your company will need to obtain an economic licence for each specific
of incorporation
economic activity. Abu Dhabi uses isicV4 definitions and categories, allowing
you to choose from more than 4,700 activities across 21 sectors .
02 You can select one or multiple economic activities during your application
process for the licence. Your application process will vary depending on the
Choosing a type activities you choose. The document requirements are set by the
of economic activity approving authorities.
03
For more information, visit:
International Standard Industrial Classification of All Economic Activities
Choosing a type
of legal form
04
Registering a
trade name
05
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
13 Investor Guide
Choosing a type of
legal form
01
Choosing a place
Business entities in Abu Dhabi are regulated by the Abu Dhabi Department of
of incorporation
Economic Development (ADDED). To register your business entity, you will need
to choose a business structure from the following options:
02 •
•
Establishment
Sole Proprietorship
Choosing a type • Limited Liability Company
of economic activity • Private Joint Stock Company
• Public Joint Stock Company
• Branch of Foreign Company
03
Choosing a type
of legal form
04
Registering a
trade name
05
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
14 Investor Guide
Establishment
Establishment is an entity owned by one individual to undertake
a business activity that includes commercial, professional,
01
industrial, agricultural or craft.
02
Sole proprietorship
Sole Proprietorship allows a single member to own 100% of the
Choosing a type business and is registered as a separate entity from its owner.
of economic activity
It is no longer attached to and identified with the owner for tax
and liability purposes and the owner is liable only to the extent of
03
their shares.
05
shares of the same nominal value, to be paid in full, without
offering any shares to the public. A shareholder can only be
liable to the extent of their share in the capital.
Obtaining an
economic licence
Limited liability company
06
A Limited Liability Company (LLC) is a company where the
number of partners is at least two but no more than 50. As an
exception to the minimum two shareholder rule for LLCs.
Registering with
Abu Dhabi Chamber of In an LLC, a partner can only be liable to the extent of their
Commerce and Industry share in the capital.
15 Investor Guide
01
company is divided into equal and negotiable shares.
The founders will receive part of the shares while the other
Choosing a place shares are offered to the public for purchase.
of incorporation
A shareholder can only be liable to the extent of their share in
the capital of the company.
03
• Allowing appointment of specialist non-stakeholders as
board members
Choosing a type Only PJSCs can conduct banking, insurance and investment
of legal form activities in Abu Dhabi.
06
although the foreign company is required to provide a standard
form bank guarantee from a local bank (which includes an
international bank with a branch in Abu Dhabi) in the amount
Registering with of AED 50,000 and to show details of its own capitalisation and
Abu Dhabi Chamber of good standing, together with its two most recent sets of annual
Commerce and Industry audited accounts.
Min. UAE
national Management
Minimum
ownership Number of or director Timeline for
Legal Form Liability capital
(outside free partners restrictions incorporation
requirements
zone) (by nationality)
Sole
Proprietorship Nil Limited No requirement One No restrictions 5 days
LCC
Limited Liability
New Legal Identity
Private Joint
Nil Limited AED 5 min At least two Open 3 - 6 months
Stock Company
51% of shares
Public Joint (pre and post Limited AED 30 min At least two Open 3 - 9 months
Stock Company public issuance)
- Must have at
least 1 general
partner who is a -Joint for UAE
UAE national Must be
Limited nationals Timeline to
managed
Partnerships (LP) No requirement At least two be added in
- Limited solely by UAE
-Limited for due course
partners can be nationals
foreign nationals
both UAE and
foreign nationals
Must be
Timeline to
General managed solely
100% No limit No requirement At least two be added in
Partnerships (GP) by UAE
due course
nationals
entity
01
Company Name Website
of incorporation
International
02
King & Spalding LLP kslaw.com
Companies
of economic activity
03
OHJ.ae
Jedayem law Firm
Manaar Legal
04
manaarlegal.com
Consultancy
Registering a Many companies employ Public Relations Officers (‘PROs’), business setup
trade name companies or legal firms to assist in the launch of their ventures in UAE.
PROs are local specialists who have extensive experience and knowledge of
05 the UAE’s laws and regulations in the areas of investor, employment and
family visas; application and renewal of trade licence; Emirates ID application
and others.
Obtaining an
economic licence
For more information, contact:
06
Abu Dhabi Chamber of Commerce & Industry
Corniche Street. Abu Dhabi
P.O.Box: 662
Registering with
Abu Dhabi Chamber of +971 2 621 4000
Commerce and Industry [email protected]
18 Investor Guide
01 Your company name is often the first thing a customer will see when they
Choosing a place engage with your business, therefore, it’s important to choose wisely. You
can reserve a name for up to 12 months while your economic licence is being
of incorporation
processed.
02
Your trade name needs to be registered at the Abu Dhabi Department of
Economic Development (ADDED) through the Abu Dhabi Business Center.
Choosing a type The standard reservation cost of a trade name is AED 200. However, some
of economic activity names are considered exceptional and incur higher reservation fees
(up to AED 1,200), while others are prohibited.
03
Choosing a type
of legal form
04
Registering a
trade name
05 Exceptional names
Obtaining an Report list of names
economic licence
Prohibited names
Registering with
Abu Dhabi Chamber of
Commerce and Industry
19 Investor Guide
Obtaining an
economic licence
01
Choosing a place
of incorporation In order to perform any sort of economic activity
in Abu Dhabi, your company will have to obtain an
02 economic licence.
Choosing a type Based on the place of incorporation and the types of economic activities you
select, you may need to obtain one of the following licenses:
of economic activity
04
If your company is incorporated on the mainland (including one of 20 industrial
zones), the issuing body for the licence will be the Abu Dhabi Department of
Economic Development (ADDED).
Registering a
trade name In addition to the standard application submitted to ADDED, certain types of
economic activities may require additional approvals or no objection certificates
from other governmental agencies.
05 You can submit your application through Abu Dhabi Business Centre.
Obtaining an
The portal is user-friendly and will provide you with a four-step
economic licence
application process.
06
The forms can be submitted by yourself or by your legal representative in
Abu Dhabi. If you are already in the UAE, you can apply at one of 14 ADDED
and TAMM branches across the emirate.
Registering with
Abu Dhabi Chamber of For TAMM branches and service centre visit addata.gov.ae
Commerce and Industry
If you are incorporating your business in one of the five free zones, your
economic licence will be issued by the selected free zone on behalf of ADDED.
Free zones have streamlined processes and dedicated investor support teams
that will help you to navigate through all the necessary procedures.
20 Investor Guide
01
licence is currently available only to three types of legal forms:
• Establishment
Choosing a place • Sole Proprietorship
of incorporation • Limited Liability Company
02
In addition to the Abu Dhabi Business Centre portal and ADDED branch, you
can also apply for an instant licence through TAMM (tamm.abudhabi), which
will guide you through each step of the process and provide you with additional
Choosing a type information on the licensing process.
of economic activity
03
Choosing a type
of legal form
04
Registering a
trade name
05
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
21 Investor Guide
01
Choosing a place
of incorporation
02
Choosing a type
of economic activity
03 Dual licence
Choosing a type
of legal form The dual licence initiative from ADDED allows free zone companies to have
access to onshore project tenders without an onshore office or premise. An
04
extended dual licence is also available and allows companies to engage with
both local Abu Dhabi and federal UAE government entities.
Registering a While the exact document requirements will vary depending on application
trade name channel, below is a list of typical document requirements:
05
• Copy of valid passport of any owner(s)
• Copy of valid Emirates ID of any owner(s)
• Power of Attorney – if applying as a representative
Obtaining an • Copy of valid tenancy contract attested by a local municipality (applicable
economic licence to certain activities)
• Copy of the memorandum of association attested by the notary public
• Copy of the Directorate of Naturalisation and Residence’s approval if the
06 investor is a foreigner
04
• Copy of the trading licence issued by the relevant authority
• Copies of regulatory approvals where applicable
(e.g. by the General Police Command, Food Control Authority, Health
Registering a Authority and Waste Disposal Authority)
trade name • Copy of leasing agreement (land plan, investment contract and building
owner contact)
• Copy of the passport and registration summary for UAE nationals -
05
if applicable
• Signature by the authorised signatory
Obtaining an
economic licence
06
Registering with
Abu Dhabi Chamber of
Commerce and Industry
23 Investor Guide
Operating a Business
in Abu Dhabi
Abu Dhabi is ranked number one for ease of doing
business in the Middle East and 12th internationally6
thanks to a range of smart services, transparent regulation
and established, world-class infrastructure available to
companies coming into or expanding across the emirate.
Real estate
Abu Dhabi is the largest emirate in the United Arab Emirates, accounting for 84% of the national territory. It has 200
islands and a long coastline stretching 700km. It is a land of serenity and iconic beauty that offers a number of ideal and
strategic locations to consider when looking at finding the right commercial property.
Office space
When leasing office space, you must decide on the location
as well as how you will fit it out:
Residential properties
Abu Dhabi has seen extensive investment in quality housing developments that appeal to every taste and need, from
fareej-style houses typically inhabited by Emirati families to residences with expatriates from many different nations.
These developments usually offer clubhouse facilities, pools, shops, gyms and more, to create a comfortable lifestyle for
individuals and families moving to the city.
Here are some of the popular housing developments and apartment blocks in Abu Dhabi:
Approximately 20 minutes
Offers premium living, scenic from Abu Dhabi island and 40 minutes
Saadiyat waterfront views and one of the nicest from the airport.
Island beaches in Abu Dhabi.
Close to the Louvre Abu Dhabi
and NYU Abu Dhabi.
Recently, Abu Dhabi has updated its property laws making it easier and more accessible for expats to purchase and own
property in the emirate. There are a few considerations that you should take into account when renting or purchasing a
residential property in Abu Dhabi:
Khalifa Fund
Talent acquisition If you are planning to employ foreigner nationals, you will
need to make sure they hold a valid work visa. Standard
employment visas are provided to employees joining a
company on a full-time basis, through either an indefinite
Abu Dhabi has a rich and diverse talent pool. Education or a fixed-term contract.
is one of the government’s most important tenets and
that’s reflected in the world-class schooling system found The validity of visas ranges from two to three years,
in the emirate. Several local universities are listed in the depending on the location of your company. The cost
global university rankings including United Arab Emirates might vary depending on the classification of companies,
University, Khalifa University, Zayed University and Higher areas of company registration, position the visa is being
Colleges of Technology. The emirate is also home to the considered for, etc. However, a common range for fees
Mohamed bin Zayed University of Artificial Intelligence, the is between AED 3,500 and 6,000, which is inclusive of
world’s first AI university. processing fees.
Abu Dhabi invests heavily in education and has provided Documents required for a standard working visa
a number of incentives to encourage foreign operators to normally include:
establish schools and universities in Abu Dhabi. Foreign • Original passport
higher education institutions with branch campuses in • Offer letter with company seal/sign and employee’s
Abu Dhabi include Sorbonne University, University of signature
Strathclyde and New York University. • Employment contract detailing the employee’s
profession and agreed compensation
For senior executives, INSEAD’s Abu Dhabi campus • Attested education certificates (applicable to
offers several education programmes, including a certain professions)
Global Executive MBA. • Immigration Establishment Card copy
• Trade Licence copy
• Passport photos of the employee
Your Visa process and entry to Abu Dhabi
The UAE Government launched the ‘Emiratisation’ initiative In 2021, Abu Dhabi launched its “Thrive in Abu Dhabi”
to promote the inclusion of Emiratis in the job sector, programme to promote long-term Golden Visas and a
particularly in the private sector. The aim of the programme pathway to citizenship for international talent working,
is to increase the number of young Emiratis in employment creating, studying, excelling and investing in key sectors
and entrepreneurship programmes. and specialties in Abu Dhabi.
A quota system on private sector employers was
introduced whereby companies in certain sectors are The UAE’s Golden Visa is available in Abu Dhabi for
encouraged to engage local talent to ensure a strong international investors and top talent from around the
representation of Emiratis within their workforce. world, providing them with visas for up to 10 years. This
This includes: includes people and researchers in the fields of science
and knowledge such as doctors, specialists, scientists and
• 2% of the workforce of entities operating in trading inventors. It is also open to talented creative and sporting
activities if the total workforce exceeds 50 employees individuals and business, startup and real estate investors
• 4% of the workforce of banks in the emirate.
• 5% of the workforce of insurance companies if the
total workforce exceeds 50 employees For more information, visit:
• 1 Public Relations Officer if the total workforce tamm.abudhabi
exceeds 100 employees
• 1 Emirati H&S officer is required for establishments
operating in the construction and industrial sector
with 500+ employees
• 2 Emirati data entry clerks for establishments with
1000+ employees (in order to operate the
MHRE online system)
ADIO works closely with the Statistics Centre of International Monetary Fund (IMF):
Abu Dhabi (SCAD), the Abu Dhabi Chamber of Commerce, imf.org
the Ministry of Economy, the Abu Dhabi Department of
Economic Development (ADDED), Central Bank of the ICA Smart service:
UAE and other entities to provide our investors with the beta.smartservices.ica.gov.ae
most relevant information.
World Bank:
In addition, the entities below publish data and papers on worldbank.org
a monthly, quarterly and annual basis covering several
macro-economic and micro-economic indicators related to
Abu Dhabi and the UAE as a whole.
32 Investor Guide
Investor ecosystem
Hub71
StartAD:
startad.ae
We wish you all the best for your Abu Dhabi InvestAbuDhabi
investment journey.
InvestinAbuDhabi
InvestinAbuDhabi
35 Investor Guide
Abu Dhabi
Investor Guide
LEGAL DISCLAIMER
The contents of this document are intended for general information purposes
only. Any person considering establishing a business in Abu Dhabi is strongly
advised to seek appropriate professional advice from Abu Dhabi Investment
Office (ADIO) directly. ADIO accepts no liability for any loss or damage caused
by a person’s reliance on any information, comment or statement provided
in this document. ADIO does not give any warranty, either express or implied,
as to the accuracy, completeness or fitness for a particular purpose of any
information, comment or statement provided in this document.
investinabudhabi.gov.ae