The United Arab Emirates has announced a bold plan to grow the number of registered companies to two million by the year 2031, a significant leap from the current 1.2 million businesses operating in the country. The target represents an approximate 67% increase and underscores the government’s long-term strategy to cement the UAE’s position as a global hub for trade, investment, and innovation.

Small and medium enterprises (SMEs) are expected to play a central role in this growth. Currently, about 94% of the nation’s companies fall into the SME category, contributing more than 60% to the non-oil economy. Officials believe scaling up this segment will not only boost competitiveness but also strengthen the UAE’s resilience against external shocks.

The initiative is closely aligned with the country’s diversification agenda, which seeks to reduce reliance on oil revenues and expand into high-growth sectors such as technology, renewable energy, advanced manufacturing, food processing, and financial services. To achieve the target, policymakers are banking on reforms such as full foreign ownership rights in many industries, streamlined licensing procedures, and supportive policies for entrepreneurs.

Experts note that while the numeric target is ambitious, the real challenge lies in ensuring quality and sustainability. Creating viable companies that can scale, innovate, and thrive in international markets will require continued investment in talent development, funding access, and regulatory clarity.

Nevertheless, government officials remain confident, emphasizing that the target is both achievable and necessary to keep pace with global competition. By 2031, the UAE envisions not only more companies but also a more dynamic and diversified economy that anchors its status as a leading business destination.