Abu Dhabi Extends Office-Free Period for Entrepreneurs to Lower Business Costs

Abu Dhabi has extended the period for which entrepreneurs can operate without an office by an additional year through its Tajer licensing programme. This initiative is designed to eliminate one of the largest upfront financial hurdles for small businesses as the emirate accelerates its drive to attract investment and expand its non-oil economy.

The Abu Dhabi Department of Economic Development announced that Tajer licence holders will now benefit from more time to establish and scale their operations before incurring the expenses associated with commercial premises. This policy forms part of a comprehensive package intended to reduce overhead and simplify the process of conducting business in the emirate, matching growing demand for the programme.

Statistics from the department show that new Tajer Abu Dhabi licences grew by 8 per cent during the first half of the year, following an increase of nearly a quarter in the previous year. Furthermore, the number of covered business activities has expanded significantly, reaching more than 1,200 compared to just 30 when the programme was originally launched in 2017.

Hamad Al Mazrouei, under-secretary at the Abu Dhabi Department of Economic Development, noted that these measures complement other government support initiatives, such as exempting economic establishments from outstanding fines related to delayed licence renewals or cancellations. That specific initiative successfully aided 7,823 commercial and industrial establishments to ensure business continuity.

“We remain committed to supporting entrepreneurship, one of the key pillars of our innovation-driven economy, for its vital role in accelerating economic growth and diversification, and enhancing the competitiveness and resilience of various sectors,” Mr Al Mazrouei stated.

Additionally, the department increased the validity period for new industrial licences known as Rowad, granting investors greater flexibility during initial setup and construction stages. Rowad licences are now valid for three years instead of two prior to construction, while licences for ongoing projects under construction have been extended from three to four years until production begins.

“These measures related to Tajer Abu Dhabi licence and industrial licences are part of initiatives we have developed based on discussions and dialogue with the private sector, as well as studies conducted by our specialised teams to empower entrepreneurs,” Mr Al Mazrouei added.

The policy updates arrive as Abu Dhabi continues its strategic diversification away from oil, pursuing numerous reforms to draw international investors and enhance market competitiveness. Official data released in June indicated that new economic licences issued in the UAE capital rose by 21 per cent year-on-year in the first quarter of 2025. Moreover, a recent report by Oxford Economics highlighted Abu Dhabi and Dubai as prominent "cities to watch" and "contenders" capable of reshaping the global economic landscape.

Across the wider UAE—the second-largest economy in the Arab world—business activity within the non-oil private sector advanced at its quickest pace since December 2024 during August, according to the S&P Global UAE Purchasing Managers' Index.

“Abu Dhabi … continues its efforts and initiatives to support investments and empower companies to achieve growth and create opportunities, further strengthening Abu Dhabi’s position as an attractive destination for talent, businesses and investment,” Mr Al Mazrouei concluded.