Doing Business in Dubai

Dubai is more than just a "must visit" tourist destination - with its unique geographic location, excellent infrastructure, stable economy and plentiful availability of cheap labor it is also a great place for business.

Foreign enterprises and individuals wishing to conduct business in Dubai can either appoint a local commercial agent or set up a formal presence in the U.A.E.

Commercial Agencies

Commercial agencies represent foreign companies in the U.A.E. for the distribution or sale of goods or the provision of services. Only U.A.E. nationals or companies wholly owned by U.A.E. nationals can act as commercial agents. While there is no obligation to register agreements with local commercial agents, this is generally done since it offers strong protection to the agent during the duration of the agreement and upon its termination.

Representative/Branch Offices

Foreign companies can set up a 100% owned formal presence in Dubai provided they have a local sponsor or "service agent". The branch office can trade and offer services in the U.A.E. under its name. The agent deals with issues such as licences, visas and other formalities but does not assume any financial obligations. Only Emirati nationals or companies wholly owned by Emiratis can act as agents. The agency agreement is a prerequisite for the provision of operating licences for branch offices.

Limited Liability Companies

Foreign ownership of limited liability companies in Dubai can be no more than 49%. However, the distribution of profits and losses can be prescribed in a "members agreement". The company can have between 2 and 50 members. A minimum share capital of Dhs 300,000 is required.

Professional Firms

100% foreign ownership of firms engaged in professional or artisan activities is permitted in Dubai. However, the firm must appoint a local service agent who will require either a lump sum payment or a percentage of any profits. The responsibility of the agent is limited to assisting with applications for licences, visas etc.

The Free Trade Zones

Dubai has a number of such zones (FTZs), each with its own governing authority. Businesses based in the FTZs are not subject to any constraints on foreign ownership and do not require local sponsors. They are exempt from most taxes but are not allowed to conduct business within the U.A.E. market. Jebel Ali Free Trade Zone, Dubai Airport Free Trade Zone, Dubai International Financial Centre, Dubai Internet City and Dubai Media City are some of the better established FTZs in Dubai.