Dubai's Department of Economic Development has reiterated that businesses
based in Free Zones across the UAE require a licence and registration in
order to take advantage of a law passed in 2011 allowing Free Zone
businesses to operate within Dubai.
Mohammed Shael Al Saadi, who is Chief Executive Officer of Business
Registration and Licensing at the DED, said that: "Under no circumstances
can a Free Zone company in Dubai operate outside its jurisdiction unless it
has a branch licensed by DED. The same applies to companies in any Free Zone
in the UAE. Alternatively, such companies may appoint an intermediary to
sell their products or services in Dubai, but the intermediary should have a
DED licence."
"Recently, we have been receiving complaints from various Free Zone
companies, most of them operating outside Dubai, that their licensors had
promised they can do business in Dubai under the Free Zone license. We have
clarified to them that there is an established route to doing business in
Dubai."
"Through Law No.13 of 2011, Dubai has acknowledged the role of Free Zone
companies in economic activity in the UAE and the leadership wants to allow
such companies to contribute further to overall development. DED's role is
to enable businesses that choose Dubai as their base to benefit from a
competitive environment and best practices."
Dubai licences are dependent on continuing Free Zone activity, and the
involvement of a local service agent to sponsor employees.
