Abu Dhabi's Department of Economic Development is introducing a professional licence that will allow foreigners full ownership of businesses related to 604 activities as the emirate seeks to attract more investors and boost its economy.
The professional activities include: accounting, training, consultancy, beauty centres, computer and internet network companies, Added said.
The licence is easy to set up or adjust, which in turn will streamline business practice across the emirate of Abu Dhabi, Rashid Al Blooshi, undersecretary of Added, said.
Abu Dhabi has introduced several initiatives to improve the ease of doing business and its global competitiveness as it prepares for its next 50 years of economic growth.
Earlier this month, the emirate reduced the requirements to set up a business by 71 per cent, a week after it cut business set-up fees by more than 90 per cent to further support the private sector.
The latest professional licence is suitable for new investors owing to its cost and the ease of its issuance, Added said.
A local service agent, who will be responsible for managing licensing requirements, is required for businesses to avail of this licence if there is no Emirati partner. Added will also issue a form of service agent agreement to identify the relationship between all partners.
An investor applying for a professional licence can also open a commercial branch "if the commercial activity is consistent with or complementary to the professional activity", Added said.
Existing businesses can benefit from this decision by adjusting their status from a commercial to a professional operation while maintaining their registered number and date of incorporation.
Added defines professional activities as those practised by a professional investor within his area of experience and which match their academic or professional qualifications.
Abu Dhabi's economy is expected to grow between 6 per cent and 8 per cent over the next two years, driven by government spending, financial services and foreign direct investment, Mohammed Al Shorafa, chairman of Added, told The National.
Last year, Added issued foreign direct investment licences to investors, allowing 100 per cent foreign ownership of businesses with capital of Dh2 million ($544,588).
The FDI licence covered 122 economic activities in sectors including agriculture, industry and services.
However, activities such as petroleum exploration and production; ground and air transport services; activities related to investigations, security and military sectors; weapons manufacturing; banking and finance activities; and medical retailing such as private pharmacies, are not covered by the FDI licence.
Last year, Abu Dhabi also identified a list of investment opportunities across sectors including health care, food production and energy that are open to foreign investors.
Mr Al Shorafa said the move will encourage investors, spur business development for foreign companies and attract businesses in technology and advanced industries, which contributes to the emirate's push for economic diversification.
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'Ghostbusters: From Beyond'
Director: Jason Reitman
Starring: Paul Rudd, Carrie Coon, Finn Wolfhard, Mckenna Grace
Rating: 2/5
Queen
Nicki Minaj
(Young Money/Cash Money)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
