From Local to Global - The Power of a Dubai Mainland License for Your Business

Starting a business in the UAE, requires you to choose from the 3 main jurisdictions to work from, Mainland, Free Zone, and Offshore. While each has its benefits, we will look into the technicalities of the Mainland License in Dubai which is a trade license issued by Dubai's Department of Economic Development (DED) government authority. It is under the direct control of the UAE government and local authorities.

Previously, companies required local sponsorship of 51% of the business; however, in 2021 businessmen were given the right to have full ownership of their businesses in most of the business sectors.

Moreover, mainland companies can freely work with international and local companies, either private or government entities enabling access to greater markets. The license also has global reputational recognition making it eligible for an unlimited number of visas.

It also has no minimum capital requirement other than for a few business activities, additionally, it makes opening a bank account easy.

Accordingly, we also need to note different types of Dubai Mainland Licenses are contextualized for different business activities. The DED authorities accommodate businesses from every industry and sector, allowing every kind of business to operate smoothly in the UAE markets. Here are the types to pick from:

1.? ? ? Commercial Business License: For businesses operating in commercial trading activities internationally and domestically

2.? ? ? Industrial Business License: For businesses operating in manufacturing, production, assembling, and processing activities

3.? ? ? Professional Business License: For businesses specializing in offering professional services

4.? ? ? Tourism License: For businesses with operations in the travel and tourism industry

5.? ? ? Freelance Business License: For individuals wanting to specialize in specific fields

6.? ? ? Branch of a Foreign Company License: For foreign businesses looking to expand in Dubai

7.? ? ? Civil Company License: For partnership businesses in certain fields

8.? ? ? Agricultural Business License: For businesses involved in arable and livestock farming

9.? ? ? Craftsmanship Business License: For businesses specializing in skilled labor

There have been businesses with the Dubai Mainland License which have thrived locally and globally. Carrefour by Majid Al Futtaim (MAF), is a prime example. It started as a franchise in 1995, and in 2013, Al Futtaim gained full ownership after the French retailer divested from the Carrefour entity in the MENA region.?

Carrefour by MAF is now seen all over the UAE, with the mainland license supporting its operations in every Emirate and enabling its expansion outside the country to the rest of the Gulf countries in 2017.

Another epitome is Emaar Properties, which was founded by Mohammed Alabbar who once worked as the director general at DED, his familiarity with the mainland license issuing authorities allowed him to not only establish Emaar easily but also grow the business locally and globally.

Emaar is globally known for the landmark of Burj Khalifa, and among its international projects spanning Asia and the United States are the 2010 Commonwealth Games Village, Crescent Bay, Downtown Erbil, and others.

Another case is of the Al Rawabi dairy manufacturer from the agricultural business sector. Operations in this industry require heavy investment in infrastructure, including a 300-acre farm and more than 16,000 cows, which is extremely challenging given the desert environment of the country.?

However, with the right business license enabling easy access to funds from banks, innovation remains uninterrupted resulting in Al Rawabi ranking among the 40 strongest brands in the Arab World by the Forbes Magazine.

While it might seem that choosing? a business license is merely just a geographical preference but as aforementioned, it actually is crucial decision that shapes every aspect of a business’s operations. Although you can make this decision independently, seeking professional guidance can provide valuable insights. Obtaining the wrong license can lead to unnecessary expenses.?

For expert assistance, feel free to reach out to us at [email protected] or call us on +971 55 234 7124.??