What are the advantages of business setup in Dubai Mainland?

The advantages of business setup in Dubai Mainland include location flexibility and freedom, allowing operations anywhere in the UAE. Dubai’s mainland jurisdiction provides diverse business opportunities for businesses, with over 1,000 industrial, commercial, and professional activities listed on the Invest in Dubai (IID) portal. Unrestricted trade enables seamless operations without geographic limitations. Investors benefit from 100% ownership control in many sectors. The details of the 12 benefits of business set up in Dubai mainland are listed below.

• Location Flexibility and Freedom
• Diverse Business Opportunities
• Unrestricted Trade
• 100% Ownership Control
• Access to Lucrative Government Contracts
• No Minimum Capital Requirement
• Unlimited Visa Flexibility
• 100% Profit and Capital Repatriation
• Company Expansion Freedom
• No Annual Audit Requirement
• Favorable Banking Conditions
• Simplified Registration Process

Dubai mainland presents excellent business opportunities for foreigners, investors, and freelancers. Most mainland businesses are allowed 100% foreign ownership (except in strategic industries) and 100% profit repatriation, enabling business owners to keep all income without sharing it with a sponsor. Similarly, the launch of the Basher online platform and Dubai Unified License eases the first steps of a business by simplifying registration and bank account opening procedures. 

In this article, we will take you through the benefits of setting up a business on the mainland of Dubai and how it benefits a foreigner, freelancer, and investor. Let’s go!

Location Flexibility and Freedom

Dubai mainland businesses are allowed to start and expand their business location(s) anywhere in Dubai mainland and the Emirates. They can freely choose office spaces, warehouses, or other premises across the city. This flexibility is crucial for companies looking to access diverse demographics and cater to the needs of both locals and tourists. 

For instance, a retail store can open its doors in bustling districts like Deira or Jumeirah. At the same time, a corporate office can take advantage of the prestigious downtown areas like Sheikh Zayed Road. Similarly, if the business grows and requires a separate office, warehouse, and outlet, you can choose your desired location for each purpose in Dubai and other emirates with no restrictions. 

Diverse Business Opportunities

Dubai mainland businesses can operate in over 1000 business activities, which are grouped under industrial, commercial, and professional categories. The Invest in Dubai portal contains a comprehensive list of all business activities in Dubai’s mainland jurisdiction, allowing flexibility over other comparative zones. The ability to operate a business in diverse industries means investors have a plethora of options to select a business activity, which suits their investment, risk appetite, and expertise.

The Dubai government’s “Dubai Economic Agenda D33” aims to double the size of the emirate’s Economy by 2033, facilitating growth across key industries such as tourism, logistics, Finance, healthcare, real estate, and technology.

Dubai Mainland offers unmatched versatility when it comes to business activities. The city’s consistent growth in sectors like artificial intelligence, blockchain, and green energy presents emerging industries that businesses can venture into.

Unrestricted Trade

Dubai mainland license allows businesses to sell their industrial, commercial, and professional products and services within the Dubai market and abroad. It enables businesses to tap into the fast-growing domestic Dubai market and generate exciting profits by catering to the premium audience. 

The real GDP of Dubai is expected to rise by 6.2% in 2025 as per The Q2-2024 Economic Review, which indicates the market’s growing potential. The report also suggests businesses in transport, hospitality, and logistics grow at a higher rate. Dubai’s growing GDP suggests a prospective increased demand for products and services in the future, which can help businesses generate higher profits. 

Additionally, mainland companies can engage in import and export activities without additional restrictions, taking advantage of Dubai’s world-class seaports and airports such as Jebel Ali Port and Dubai International Airport. This unrestricted access to local and global markets gives mainland businesses a competitive edge in expanding their reach. 

100% Ownership Control

Dubai’s mainland jurisdiction allows 100% foreign ownership in most industries, after the provisions of Federal Decree-Law No. 26 of 2020, albeit with some exceptions, including Defense, military, telecommunication, banking, asset exchanges, and insurance. 100% ownership allows foreign business owners in Dubai to have complete autonomy over the operations, strategy, and profits of their enterprise while saving from the hassle of finding an Emirati partner.

This flexibility makes Dubai an even more attractive destination for global entrepreneurs. With full control over their businesses, investors can make independent decisions, retain greater revenue shares, and maintain full authority over their operations. 

Access to Lucrative Government Contracts

Businesses in Dubai mainland gain exclusive eligibility to bid on high-value government tenders. These contracts often encompass large-scale initiatives like infrastructure development, public utilities, and technology. Securing a government contract not only brings steady revenue streams but also enhances a company’s credibility and visibility. This opportunity creates a way to establish long-term business relationships with government entities while promoting associated industries’ growth.

No Minimum Capital Requirement

Dubai mainland businesses have no minimum capital requirement unlike other economic zones, which reduces the financial burden on startups and entrepreneurs and allows them to channel their funds into operational and growth activities. The flexibility of no minimum capital lowers the entry barrier to launching your business on the Dubai mainland. It ensures that the owner focuses on achieving the business goals rather than fretting over high upfront investment. 

However, exceptions exist, such as Private joint stock companies requiring a minimum capital of 5 million AED as per Federal Decree Law No. (32) of 2021.

Unlimited Visa Flexibility

The DED allows mainland businesses to apply for visas with no limits as long as it matches their scale and activity. Mainland businesses can sponsor visas for their workforce without restrictions, provided they have sufficient office space to accommodate their team. This is especially advantageous for companies planning to scale and hire a diverse workforce. 

Additionally, shareholders and business owners can sponsor visas for their family members, allowing them to relocate to Dubai. The combination of workforce flexibility and family residency enhances the operational and personal benefits of owning a mainland business.

100% Profit and Capital Repatriation

Dubai mainland businesses have tax-free repatriation of profits and investments as per the Ministry of Investment; additionally, there are no taxes on personal income and capital gains to simplify the process. It enhances the suitability of Dubai for foreign entrepreneurs, who don’t have to worry about additional expenses while transferring their funds abroad. Hence, investors can choose to move their investment in-and-out of Dubai to take advantage of profitable opportunities as they arise. 

Company Expansion Freedom

Dubai mainland businesses can easily locate their operations anywhere in the Emirates. It allows businesses to be closer to their customers, suppliers, and other stakeholders, reduce costs, and generate higher profits. 

Dubai mainland’s diverse options in business activities enhance this benefit; businesses in mainland jurisdiction can expand their business to multiple activities and operate in multiple locations across the Emirates, providing products and services that suit the audience’s demographic under a single brand name. 

No Annual Audit Requirement

Dubai mainland businesses are exempt from preparing and making audited financial statements, unlike businesses in other economic zones, as per Ministerial Decision No. 82 of 2023. The exemption from annual audits helps Dubai mainland businesses save significantly on time, effort, and accounting costs. This streamlined regulatory process makes it simpler for small and medium-sized enterprises (SMEs) to focus on growth and operations. Lesser bureaucracy also leads to fewer hurdles, making Dubai an easy and attractive location for startups and seasoned businesses.

However, if a person’s taxable income is higher than 50 million, they are required to audit the financial statements. Similarly, every joint stock company and limited liability company must have an auditor for their financial statements per Article 27 of Federal Decree Law No. (32) of 2021.

Favorable Banking Conditions

The Dubai Unified License (DUL) provides favorable banking conditions for businesses by streamlining the KYC and account sign-up process. It provides unified access to helpful information for banks, reducing time and saving costs. The DUL had onboarded over eight banks by 2024, including Ruya, First Abu Dhabi, and Dubai commercial banks. 

Similarly, the Department of Economy and Tourism has also worked with Network International to develop a fintech model that facilitates raising seed and growth capital through public-private partnerships. Hadi Badri, Dubai Economic Development Corporation’s CEO, suggested these collaborations assist Dubai in achieving the objective set in the D33 Agenda, which indicates a more business-friendly environment in the future. 

Simplified Registration Process

The official registration time to register a company with the Department of Economic Development is 4 days, as per the Ministry of Economy, compared to 10 days in high-income countries, as per the World Bank. Nonetheless, with Dubai’s latest Basher platform, the timing is reduced to 15 minutes; the Basher application helps you establish a business, get a commercial license, and become a member of the Chamber of Commerce– all within 15 minutes as per Invest In Dubai. 

Dubai’s hassle-free registration system is a boon for investors. Entrepreneurs can access all relevant documents, permits, and approvals under a single-window system. The electronic submissions and reduced bureaucratic steps help companies begin operations in record time. 

What are the advantages of mainland Business setup in Dubai for foreigners?

The advantages of a Dubai mainland business setup for foreigners include setting up and operating their business across the Emirates region. With a mainland business, an expat can expand their business across the UAE and sell to the growing premium market in Dubai. Similarly, foreigners can own 100% of their business in most industries, meaning they can keep 100% of their profit and not worry about finding an Emirate sponsor. 

Another practical advantage is the tax threshold and percentage. The tax threshold is set at 375000 AED, or $102000, as per section 4 of the General Corporate Tax Guide; mainland business entities making profits below this threshold get to keep all of their profits without paying any in taxes. For larger businesses, the percentage of corporate tax is set at 9%, which is significantly below the UK’s 25% and the US’s 21%. 

What are the advantages of mainland Business setup in Dubai for freelancers?

The advantage of a mainland business set up for freelancers revolves around the ease of obtaining a license and starting freelance operations in Dubai. The Dubai Development Authority has launched ‘Freelancer License Registration,’ which provides a permit for self-employed individuals to conduct their business with their birth name instead of a brand name. 

Dubai leadership has also launched the ‘Go Freelance’ platform, designed for freelancers to explore and bid on new and exciting projects in Dubai. Freelancers will need a freelancer license, UAE number, Establishment card for 2000 AED, original passport, and a passport photo to sign up for the platform.  Freelancers operating in mainland jurisdiction are also exempt from income tax, per the Ministry of Economy. 

Dubai also provides a 1-year virtual work visa for remote workers, allowing freelancers to conduct their business while staying in the Dubai mainland. It exempts the applicant from needing a visa sponsor, and they can also sponsor family members, including spouses and children. 

Dubai has attracted foreign businesses and investors due to its business-friendly policies, and it presents numerous opportunities for networking events, industry expos, and collaborative hubs to connect with like-minded professionals and potential clients.

What are the advantages of a mainland Business setup in Dubai for Investors?

The advantage of mainland business setup in Dubai mainland for investors includes the flexibility to operate in over 1000+ business activities with no minimum capital requirement. The Invest in Dubai (IID) portal contains a comprehensive list of all activities that can be conducted within Dubai. As long as the company isn’t a joint stock company, investors don’t have a minimum capital requirement, per Federal Decree Law (32) of 2021. Hence, investors can diversify their investments in multiple sectors without putting all their eggs in one basket. 

Another advantage for a Dubai mainland business is the tax exemption of capital gains tax on domestic and foreign shareholdings as per The Federal Decree-Law No. (47) of 2022. It ensures investors can keep 100% of the gains earned from investments in Dubai mainland, making it attractive due to economic gain and reduced red taping.

Additionally, Dubai’s strategic location as a bridge between East and West grants unparalleled access to global markets. These factors collectively position Dubai Mainland as a hotspot for investors seeking growth, innovation, and sustained success.

What industries are most profitable for business setup in Dubai Mainland?

The most profitable industries for business setup in Dubai Mainland include transportation, hospitality, tourism, real estate, supply chain, and Finance. Dubai leadership introduced The “D33 agenda”, aspiring to make Dubai the safest and most connected city in the world. A primary objective of the D33 agenda is to help Dubai rise among the top 3 international and business destinations worldwide by creating a business-friendly environment and reducing business costs. 

Additionally, The D33 agenda focuses on innovating and expanding Dubai’s healthcare, finance, biotech, education, and logistics industries as per the Department of Economy and Tourism. Nonetheless, Dubai’s consistent economic growth and projections suggest a rise in aggregate demand, presenting a favorable scenario for all industries on the Dubai mainland. 

What 6 factors should I consider to get maximum advantage of mainland Business?

The 6 factors you should consider to get the maximum advantage of a mainland business are listed below. 

• Wide range of business activities 
• Unrestricted Emirates market access
• Ease in Acquiring Government Contracts
• Strategic location
• Wider Customer Base
• Business-Friendly Regulatory Environment