Operating a business outside of the country’s designated free zones is referred to as “doing business in the UAE mainland.” Businesses operating on the mainland of the United Arab Emirates are subject to both federal rules and regulations issued by the relevant emirate and the federal government of the United Arab Emirates, in contrast to free zones that provide incentives and regulations specific to certain industries.

Starting a company on the mainland Dubai offers business owners access to a varied and expanding market quickly. In contrast to free zones, mainland businesses are allowed to operate anywhere in the United Arab Emirates, giving them more access to the local market. The capacity to conduct business in a variety of industries, which promotes a wider range of options, is one major benefit. Additionally, mainland companies can engage in projects and government contracts, thereby broadening their purview. Establishing a mainland business enables cooperation with local sponsors, who normally do not interfere with day-to-day operations, even if foreign ownership is typically limited to 49%. With this approach, businesses may take use of Dubai’s advantageous location, robust infrastructure, and well-established legal system, all of which contribute to the city’s vibrant business environment.

  • Businesses in the UAE mainland have greater freedom to choose their industry, whereas free zones are frequently sector-specific or have restrictions on the kinds of activities allowed.
  • Businesses established in the UAE mainland are frequently given preference when bidding for government contracts and projects.
  • Businesses operating on the UAE mainland are obliged to have a local sponsor or partner who is a UAE national or a company owned by UAE nationals.
  • Businesses operating in the mainland have access to a talented and diversified workforce from both local and expatriate groups. Usually, the foreign investor or investors own the remaining shares of the company, with the local sponsor owning at least 51 percent.