GULF NEWS: Abu Dhabi: Entrepreneurs and independent professionals are increasingly choosing Abu Dhabi to establish businesses, with freelance licences rising 261% during the first quarter of 2026.

New economic licences across the emirate increased by 21% compared with the same period last year, while the number of active licences grew by 12%, according to data from the Abu Dhabi Registration and Licensing Authority.

The increase covered several parts of the economy, with vocational licences rising 193%, commercial licences growing 20% and permits linked to agriculture, fisheries and livestock increasing 5%.

Flexible business models also gained ground during the quarter. Abu Dhabi Trader licences rose 17%, while Mobdea licences for creative activities increased 15%.

More options for entrepreneurs
The rise in freelance and specialised licences reflects growing demand from professionals and entrepreneurs seeking to operate through more flexible business structures.

Abu Dhabi has expanded its digital licensing services and streamlined company formation procedures as part of efforts to reduce the time and administrative requirements involved in opening and running a business.

Commercial activity also remained firm, with advertisements increasing 26% and promotional campaigns rising 2% during the quarter.

Growth was recorded across the emirate, with Al Ain reporting the highest increase in new economic licences at 58%. Al Dhafra followed with growth of 28%, while Abu Dhabi City recorded an 18% increase.

Mohammed Muneef Al Mansoori, Director-General of the Abu Dhabi Registration and Licensing Authority at the Abu Dhabi Department of Economic Development, said the continued rise in new licences reflected the resilience of the emirate’s economic ecosystem and its ability to sustain growth.

He said regulatory initiatives, improvements to digital services and greater procedural efficiency were helping Abu Dhabi attract companies seeking opportunities to establish and expand their operations.

The extension of industrial licence validity periods has also provided businesses with greater flexibility during the establishment and development stages.

Industrial capacity expands
Manufacturing continued to play a larger role in Abu Dhabi’s economic diversification programme, with 34 industrial facilities entering production during the first quarter.

The number of industrial establishments reaching operational status increased by 3%, adding to the emirate’s manufacturing capacity and supporting the development of local supply chains.

The expansion forms part of the Abu Dhabi Industrial Strategy, which seeks to attract high-value investments, strengthen local manufacturing and raise the industrial sector’s contribution to non-oil economic activity.

Al Mansoori said investor confidence remained particularly evident in the industrial sector, supported by regulatory changes designed to give companies more flexibility while setting up and expanding facilities.

AI companies increase 22.5%
Abu Dhabi also recorded a 22.5% increase in the number of artificial intelligence and advanced technology companies over the past year.

Investment has been directed towards data centres, cloud computing, AI model development and digital infrastructure, alongside the use of artificial intelligence in healthcare, energy, transport and government services.

The sector has become an important part of Abu Dhabi’s effort to build a knowledge-based economy and attract companies working in high-growth technologies.

Programmes led by the Abu Dhabi Investment Office are targeting businesses involved in artificial intelligence, autonomous mobility, health technology, advanced manufacturing, financial services, agricultural technology and the green economy.

Global investment firms expand presence
The growth in local business formation has been accompanied by the arrival of more international financial and investment institutions.

Bain Capital, Blue Owl Capital and Hillhouse Investment have opened or announced plans for offices in Abu Dhabi during 2026, adding to the emirate’s position in asset management and alternative investments.

Abu Dhabi Global Market has also continued to attract financial institutions, asset managers and international companies seeking access to regional markets.

The arrival of global firms alongside the increase in freelance, commercial and industrial licences points to growth across both smaller businesses and large international institutions.

ADRA said it would continue updating governance, compliance and regulatory procedures in line with international practices, while improving services for companies establishing and expanding operations in Abu Dhabi.