To buy a business in Abu Dhabi, confirm foreign ownership of the activity, verify the licence with the Abu Dhabi Department of Economic Development or the relevant free zone, reconcile the financials to bank and tax records, and confirm sector approvals survive the change of ownership. Full foreign ownership is widely available. The federal tax regime applies: corporate tax at nine percent above AED 375,000 and VAT at five percent.
Can a foreigner buy a business in Abu Dhabi?
Yes, in most cases. The UAE federal ownership regime applies, so full foreign ownership is available across a wide range of activities on the mainland and in all free zones. A limited set of strategic activities still requires a local partner. Confirm the specific activity with the licensing authority before you sign.
Which authority issues the licence?
| Jurisdiction | Issues the licence | Notes |
|---|---|---|
| Abu Dhabi mainland | Abu Dhabi Department of Economic Development | Can trade across the UAE |
| Free zone | The specific zone, for example KEZAD, Masdar City, twofour54 | Zone rules govern mainland trade |
| ADGM | ADGM Registration Authority | Separate common law jurisdiction and courts |
The tax position
Abu Dhabi sits under the same federal tax regime as the rest of the UAE. Corporate tax is nine percent on taxable income above AED 375,000, and VAT is five percent, both administered by the Federal Tax Authority. The dirham is pegged to the US dollar. As in Dubai, confirm any free zone qualifying income position in writing rather than taking it on trust.
The due diligence that matters in Abu Dhabi
Verify the licence and its history with the Abu Dhabi Department of Economic Development or the free zone, reconcile audited financials to bank statements and VAT returns, confirm the lease, and check employee liabilities through MOHRE and the wage protection system. Where the business holds a sector approval, confirm it survives the change of control before you treat it as an asset.
How GCI helps you check the business before you buy
You have found an Abu Dhabi business worth a closer look. Before you spend on lawyers and accountants, Gulf Commercial Insights screens that specific deal for you. The conviction engine reads the whole opportunity, argues the case for buying against its strongest counter-arguments, and flags every figure that is assumed rather than proven. You get back one clear, source-graded verdict, with each claim tagged VERIFIED, ESTIMATED or REPORTED.
For a buyer, that answers the three questions that matter:
- Should you walk away, renegotiate the price, or move to full due diligence?
- What are the specific risks that could sink this deal, ranked, with the evidence behind each?
- What should you put to the seller in writing before you sign?
So your time and your advisory spend go only to the deals worth it, and you go into the negotiation knowing what you are buying. We are a technology and research firm, not a DFSA-regulated financial services firm.
Frequently asked questions
Can a foreigner own a business in Abu Dhabi?
Yes, in most cases. The UAE federal regime allows full foreign ownership across a wide range of mainland activities and all free zones. A limited set of strategic activities still requires a local partner. Confirm the activity with the Abu Dhabi Department of Economic Development.
What is ADGM?
Abu Dhabi Global Market is a financial free zone that operates under its own common law framework, courts and registration authority, separate from the mainland. Entities registered there are governed by ADGM rules rather than onshore UAE company law.
What taxes apply in Abu Dhabi?
The federal regime applies: corporate tax at nine percent above AED 375,000 and VAT at five percent, both administered by the Federal Tax Authority.
How long does due diligence take in Abu Dhabi?
For a small to mid sized business, a focused review usually runs four to eight weeks, with legal, financial and tax work in parallel. Sector approvals that need a regulator to review the change of ownership can extend it.
Checking an Abu Dhabi business you want to buy?
Start with a free Deal Health Score on the specific deal, then get the full Conviction Report with a clear verdict and evidence-tiered findings, priced to your mandate. See the public record of past verdicts first.