The United Arab Emirates capped 2024 with a milestone that speaks volumes about its attractiveness to business creators: over 200,000 new company licences were issued across the federation during the year. This surge in company formation is more than a headline figure — it is an embodiment of policy reform, economic diversification and an entrepreneurial culture that the UAE has cultivated deliberately over the last decade. The 200,000-plus new licences cut across mainland and free-zone registrations, from one-person professional licences to corporate entities planning large-scale operations. Importantly, this wave of enterprise formation spans sectors — technology startups, trade and logistics companies, manufacturing ventures, professional services and creative industries all contributed to the growth. The diversity of these new entities signals a maturing ecosystem where small and medium enterprises (SMEs) are central to future economic growth plans. Several factors explain why so many entrepreneurs chose to incorporate in the UAE in 2024. The legal and regulatory landscape underwent a sweeping modernization effort, with targeted reforms that simplified business registration, clarified foreign-ownership rules, and enhanced investor protections. A shift toward digital government services — streamlined licensing portals, quicker approvals and unified digital windows in some emirates — reduced friction and shortened the timeline between idea and operation. Free zones continue to play a pivotal role. With sector-specific benefits and world-class infrastructure, free zones attract companies that seek specialized hubs — fintech in the DIFC and ADGM, logistics in Jebel Ali and Khalifa, media in Dubai Media City, tech in Dubai Internet City and Abu Dhabi’s Hub71. Importantly, free zones began to adapt with hybrid models that facilitate mainland market access, mitigating the historical barriers between free-zone entities and local markets. Talent and access to capital are also crucial. The UAE’s visa reforms, including investor and specialist talent visas, encourage entrepreneurs to relocate teams quickly. Additionally, an expanding venture-capital and angel investor ecosystem, coupled with government incubators and accelerator programmes, has improved early-stage funding availability. Local banks and international financiers have also scaled up tailored products for startups and SMEs, including trade finance and working capital facilities. Another key driver is the international investor confidence reflected in macroeconomic stability. The UAE’s proactive fiscal management, competitive corporate tax regime, and clear regulatory roadmaps have reduced uncertainty for new companies. For many founders, the UAE’s role as a gateway to the broader Middle East, Africa and South Asia — combined with its world-class logistics and digital connectivity — makes it a logical base for regional expansion. For entrepreneurs considering company formation today, the scale and speed of new licence issuance create both opportunities and practical considerations. On the opportunity side, a bustling local market means access to a growing client base, a deep pool of service providers (legal, accounting, marketing and HR), and an ecosystem where suppliers and partners are readily available. Peer networks and industry clusters accelerate collaboration and client acquisition, which is invaluable for early revenue growth. On the practical side, entrepreneurs should pay attention to licensing specifics, scope of permitted activities, visa quotas, and bank account opening processes — all of which differ between emirates and free zones. While the digitalisation of many steps has reduced processing time, due diligence on requirements remains essential. Also, entrepreneurs should budget for compliance costs, legal setup fee, office space (even flex options), and operational readiness such as payroll systems and tax registration where relevant. From a strategic perspective, the proliferation of new licences also signals a competitive market. Businesses should differentiate through niche positioning, specialization, quality customer service and value-added offerings. The more crowded the sector, the greater the need for clear branding, online presence and partnerships that unlock market channels quickly. The government’s broader support for SME development adds further confidence. Initiatives promoting Emiratisation in the private sector, SME financing schemes, training grants and public procurement set-asides help domestic and foreign entrepreneurs grow sustainably. Regulatory sandboxes, particularly in fintech and digital services, create controlled environments where experimental business models can be trialled with regulatory support — a boon for early-stage tech ventures. In conclusion, the issuance of more than 200,000 new company licences in 2024 is both proof and promise. It proves the UAE’s capacity to attract and facilitate business formation at scale while promising a future where entrepreneurs have access to market, capital and a modern regulatory environment. For investors and founders looking to set up a company in the UAE, this environment offers speed, choice and strategic positioning to scale regionally — provided that setup is aligned with careful planning and local expertise.