The UAE is strengthening its position as a leading global investment hub, supported by extensive economic reforms, updated legislation and a stable, open business climate that has contributed to a sharp rise in new companies and sustained investor confidence.

Official data shows that the number of active businesses in the country has increased by 235 percent over the past five years, reaching more than 1.3 million by the end of the first half of 2025, compared with about 400,000 in 2020. The expansion is partly driven by major policy shifts, including the introduction of 100 percent foreign ownership for commercial entities.

Officials and business leaders say the UAE’s regulatory clarity, inclusive economic environment and long-standing commitment to tolerance continue to attract skilled professionals, entrepreneurs and multinational firms. They note that the country’s open economic model has made it a preferred destination for high-net-worth individuals and global corporations seeking long-term stability.

More than 80 percent of economic legislation has been overhauled in the past three years, accelerating the transition toward a knowledge and technology-driven economy. Authorities describe these updates as significant steps forward for the business environment and overall market confidence.

Intellectual property activity also reflects rising global engagement, with 402,311 local and international trademarks registered by the end of September 2025.

Saeed Al Gergawi, Vice President of the Dubai Chamber of Digital Economy, stated that the UAE provides an integrated ecosystem that enables companies, including start-ups, to scale and test emerging technologies such as AI in collaboration with government entities. He also cited “Expand North Star” as a major platform for exploring business opportunities and attracting investment.

Yusuff Ali MA, Chairman of Lulu Group, highlighted the UAE’s multicultural environment, noting that more than 200 nationalities live in the country and that this diversity is reflected across the Group’s workforce.

Dr Brian Shegar, Emeritus Chairman of the UAE-Singapore Business Council, said Singaporean firms continue to choose the UAE as their regional base due to its favourable business environment, strong legal system and advanced regulations. Around 700 Singaporean companies now operate regional headquarters there.