Abu Dhabi Extends Office-Free Period for Eligible Tajer Licence Holders

The Abu Dhabi Department of Economic Development has extended by one additional year the period during which certain Tajer Abu Dhabi licence holders can operate without maintaining physical business premises. The extension applies specifically to licence holders whose existing period for operating without physical premises is due to expire during 2026.

The measure is intended to reduce operating costs for entrepreneurs and support business continuity during the early stages of establishing and growing a business in Abu Dhabi. Tajer businesses can normally operate without premises for three years

The Tajer Abu Dhabi licence allows eligible UAE nationals and residents to conduct specified economic activities without initially securing physical business premises. Under the standard framework, Tajer licence holders can operate without physical premises for the first three years of their business, subject to the conditions and approvals applicable to their activities. The newly announced measure gives licence holders whose three-year period expires during 2026 an additional yearbefore the premises requirement applies.

This should not be interpreted as a permanent four-year rule for every future Tajer licence. The announced extension specifically applies to the group of licence holders whose existing office-free period expires during 2026.

Tajer Abu Dhabi was introduced in 2017 with approximately 30 economic activities. The scope of the licence has since expanded substantially and now covers more than 1,200 activities. The range includes a variety of commercial and professional activities, although eligibility and operational requirements vary according to the specific activity.

ADDED reported that new Tajer Abu Dhabi licences increased by 24% in 2025 and a further 8% during the first half of 2026, reflecting continued demand for lower-cost and more flexible business licensing options.

The extension does not remove premises requirements altogether. After the applicable office-free period ends, Tajer licence holders may still be required to secure suitable physical premises in accordance with the regulations governing their particular activity and obtain any technical or sector-specific approvals that apply. Businesses should therefore distinguish between:

• eligibility to obtain a Tajer Abu Dhabi licence;

• the temporary ability to operate without physical premises; and

• any separate regulatory, technical or location requirements attached to the licensed activity.

Alongside the Tajer initiative, ADDED has also extended certain timelines for industrial licences.

The validity period for new Rowad industrial licences before the start of the construction phase has been extended from two to three years, while licences for projects under construction have been extended from three to four years before production begins.

These measures form part of Abu Dhabi's wider efforts to provide businesses with greater flexibility during establishment, investment and expansion.

NUR Advisory Note

The one-year Tajer extension can provide meaningful cost relief for eligible entrepreneurs who would otherwise need to secure commercial premises during 2026. However, businesses should verify their individual licence status rather than assuming the extension automatically applies to every Tajer licence. Particular attention should be given to:

• the original licence issue date;

• when the existing office-free period expires;

• whether the licensed activity is eligible for the Tajer structure;

• any technical or sector-specific approvals;

• whether premises will become mandatory after the extended period; and

• whether the business has expanded or changed activities in a way that affects its licensing requirements.

Entrepreneurs planning a new Abu Dhabi setup should also compare the Tajer licence with other available structures, including Freelancer, Virtual and Standard economic licences, depending on the activity, ownership structure and operational requirements. ADDED currently provides several licence categories designed for different business models.