Abu Dhabi extends virtual business licensing period to support entrepreneurial growth

The Abu Dhabi Department of Economic Development has granted an additional year for Tajer Abu Dhabi licence holders to operate without physical premises, reinforcing the emirate's commitment to reducing business establishment costs and fostering entrepreneurial expansion.

The Abu Dhabi Department of Economic Development (ADDED) has announced a one-year extension to the operating period for Tajer Abu Dhabi licence holders, permitting businesses to function without maintaining a physical premises. The extension applies to licence holders whose current exemption period expires during 2026, forming part of a broader initiative to streamline business operations and reduce the financial burden associated with establishing commercial ventures.

Expanding entrepreneurial opportunities

Since its introduction in 2017, Tajer Abu Dhabi has established itself as a cornerstone of entrepreneurial support, enabling founders to launch, develop and scale enterprises across a diverse spectrum of specialised activities. The licence category has experienced remarkable growth, with new registrations increasing by 24 per cent in 2025 and a further 8 per cent during the first half of 2026. The range of economic activities available under the licence has expanded substantially, from 30 activities at launch to more than 1,200 categories at present.

Complementary industrial sector reforms

ADDED has extended its support beyond the Tajer Abu Dhabi framework, implementing additional measures for industrial enterprises. New industrial licences under the Rowad programme now benefit from an extended validity period of three years before the commencement of construction, while existing construction-phase licences have been extended from three to four years until production commences. These adjustments provide investors with enhanced flexibility during critical establishment and development phases.

Strategic policy direction

His Excellency Hamad Sayah Al Mazrouei, Undersecretary of ADDED, underscored the department’s commitment to nurturing entrepreneurship as a fundamental driver of economic innovation and diversification. “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,” he stated. “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.”

The extensions form part of a series of recent interventions designed to alleviate pressure on emerging and established businesses. ADDED recently implemented an initiative exempting economic establishments from outstanding fines incurred through delays in licence renewal or cancellation procedures. This programme benefited 7,823 commercial and industrial establishments, facilitating business continuity during transitions.

The Abu Dhabi Registration Authority, ADDED’s regulatory and developmental arm, continues advancing initiatives intended to attract investment and strengthen enterprise performance. These efforts reinforce Abu Dhabi’s positioning as a compelling destination for entrepreneurial talent, commercial operations and substantial capital investment.

Source: Abu Dhabi Media Office