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Hi Dubai
7 days ago
- Business
- Hi Dubai
Identifying Prime Locations to Set Up Your Business in Dubai
Dubai continues to strengthen its position as a top global hub for business. With its visionary leadership, strong economic policies, and open-door approach to global investors, the city keeps drawing attention. But have you ever wondered why so many entrepreneurs are choosing Dubai to launch their businesses? Or what makes one business district more appealing than another? A closer look reveals some striking numbers. Over 30,000 new companies registered in the city between January and June 2023, according to Invest in Dubai. Free zones played a major role in this growth. DMCC alone welcomed 2,692 new businesses last year, now housing over 24,000 members. The center contributes 11% of all foreign direct investment (FDI) into Dubai and 7% of its GDP. DIFC saw 1,451 new registrations in 2023, taking its total to 5,523 companies. JAFZA reported Dhs713 billion in non-oil trade in 2024 and is now home to over 11,000 businesses. Meanwhile, DAFZ supports more than 3,000 businesses with a tax-free environment, full foreign ownership, and repatriation of profits. What does all this tell us? Dubai's ability to consistently attract companies reflects its solid diversification strategy. Today, oil contributes less than 1% to the UAE's GDP. This means the focus has clearly shifted to innovation, services, and future-ready sectors—good news for new businesses. Mainland or Free Zone: Which Route Should You Take? One of the first decisions an entrepreneur needs to make is where to register: on the mainland or in a free zone. It's not just about geography. This decision affects ownership, taxes, licensing, and how easily you can trade. Mainland companies: Can trade across the UAE and internationally Allow 100% foreign ownership for most activities Require a physical office (costs vary from AED 30,000 to AED 150,000 annually) Free zone companies: Offer 100% foreign ownership and 0% corporate tax (if compliant) Provide flexible office options starting from AED 10,000 per year Usually complete setup in 5 days to 2 weeks Historically limited to international trade, though recent rules allow mainland branches through Dual Licenses Table: Mainland vs. Free Zone Setup Aspect Mainland Free Zone Ownership Up to 100% (some sectors require Emirati partner) 100% Market Access Full UAE and global Mainly global; mainland via Dual License Corporate Tax 9% (from 2024) 0% (if compliant) Office Space Mandatory physical office Shared/flexible options Setup Time Longer (weeks to months) Faster (5 days to 2 weeks) Customs Duties Applied Exempt within zone Local Sponsor Optional (AED 10,000-25,000) Not required What Kind of Business License Do You Need? The type of license you apply for depends on your business activity. Dubai's DET and the Ministry of Economy recognize six primary license categories covering over 2,000 activities: Commercial : For trading, import/export, retail : For trading, import/export, retail Professional : For services like consultancy, law, education : For services like consultancy, law, education Industrial : For manufacturing and production : For manufacturing and production E-Trader : For home-based or online sellers : For home-based or online sellers Dual License: For operating across the mainland and free zones Each free zone also offers its own licensing structure. For instance: DMCC offers Trading, General Trading, SPV, Crypto, and Gaming licenses DIFC categorizes licenses by financial activities (from Category 1 to 5), and also issues AI, FinTech, and Innovation licenses DAFZ offers Talent Pass for freelancers in media, tech, and education Looking at license distribution helps us understand where Dubai is heading. On the mainland, the majority of licenses issued in Q1 and H1 2022 were professional (55%+), marking a shift toward a service-based economy. Compare this to November 2018, when commercial licenses made up 62.3%. Dubai Mainland License Trends License Type Q1 2022 H1 2022 Professional 14,057 (57%) 25,109 (55%) Commercial 10,605 (43%) 20,544 (45%) Free zones are seeing similar transitions, but with a stronger focus on innovation. For example: DMCC saw 129 new companies in its Crypto Centre and 48 in Gaming DIFC added 316 FinTech firms in 2023, now totaling 902 DFSA issued 154 new licenses in 2024, with a 75% spike in wealth management firms Top Locations for Different Business Types If you're unsure where to start your business journey, here's how Dubai's business districts break down by type and specialization: Mainland Business Hubs Bur Dubai & Deira : These remain the most popular for new businesses. In H1 2022, Bur Dubai alone saw 31,604 licenses. : These remain the most popular for new businesses. In H1 2022, Bur Dubai alone saw 31,604 licenses. Top areas within : Al Fahidi, Al Marrar, Burj Khalifa, Port Saeed, Al Barsha 1 : Al Fahidi, Al Marrar, Burj Khalifa, Port Saeed, Al Barsha 1 Best for: General trading, retail, consultancy, education, legal services Specialized Free Zones DIFC : Focused on finance, FinTech, AI, and innovation. Offers subsidized Innovation License. Office rents range from AED 150–300/sqft/year. : Focused on finance, FinTech, AI, and innovation. Offers subsidized Innovation License. Office rents range from AED 150–300/sqft/year. DMCC : Known for commodities but growing in crypto, AI, and e-commerce. Based in JLT with office rents between AED 50–200/sqft/year. : Known for commodities but growing in crypto, AI, and e-commerce. Based in JLT with office rents between AED 50–200/sqft/year. JAFZA : Ideal for manufacturing, logistics, and large-scale trading. Located next to Jebel Ali Port. Supports over 11,000 businesses. : Ideal for manufacturing, logistics, and large-scale trading. Located next to Jebel Ali Port. Supports over 11,000 businesses. DAFZ: Best for aviation, tech, fashion, logistics. Located at Dubai International Airport. Offers freelancing-friendly Talent Pass. Factors That Should Guide Your Location Choice There's more to choosing your business location than just licensing or rent. Have you considered how infrastructure, workforce, or connectivity might impact your operations? Infrastructure & Connectivity : Dubai offers world-class roads, ports, and airports. The UAE also ranks top globally for its digital infrastructure, making it ideal for tech-driven businesses. : Dubai offers world-class roads, ports, and airports. The UAE also ranks top globally for its digital infrastructure, making it ideal for tech-driven businesses. Talent Pool : With 88.5% of the population being expats, Dubai provides a diverse, skilled workforce. Visa reforms like the Golden Visa help retain top talent. : With 88.5% of the population being expats, Dubai provides a diverse, skilled workforce. Visa reforms like the Golden Visa help retain top talent. Costs : Mainland license: AED 20,000–50,000 Free zone license: AED 10,000–50,000 (often includes office) Office rent: Varies significantly (see examples below) : Sample Office Costs (Annual) Area Average Rent Downtown Dubai AED 1.5M Business Bay AED 372,000 Deira AED 45,787 DIFC AED 150–300/sqft JLT AED 50–200/sqft Other Costs : Company setup: AED 8,000–15,000 Visa fees: AED 3,000–7,000 Permits: AED 5,000–10,000 : Dubai's "Invest in Dubai" platform simplifies the setup process for both mainland and free zone businesses. It's also worth noting that free zones often allow quicker setup and offer bundled packages that reduce the hassle. Building Your Business in the Right Place Dubai's business-friendly environment, strong infrastructure, and regulatory flexibility make it an ideal place for new ventures. But your location decision can influence everything from operations to growth. Should you go mainland for direct market access? Or does a free zone align better with your industry and cost structure? Use this framework to guide your choice: Target Market : Local consumers vs. global trade? : Local consumers vs. global trade? Industry Needs : Are you in FinTech, manufacturing, or consultancy? : Are you in FinTech, manufacturing, or consultancy? Cost Structure : Can you afford Downtown rent, or would JLT be smarter? : Can you afford Downtown rent, or would JLT be smarter? Operational Model: Would a hybrid setup (Dual License) give you more freedom? Whichever route you choose, Dubai offers the ecosystem, talent, and tools to help your business thrive. But success in this city isn't just about choosing the right location—it's about knowing exactly what kind of legacy you want to build. Also read, Can Foreigners Really Own 100% of a Business in the UAE? Here's the Truth Explore the evolution of foreign ownership restrictions in the UAE, from their historical roots to the groundbreaking 2020 reforms and the sectors that still require local ownership. Best Digital Tools for Small Businesses in the UAE Discover essential digital tools every small business in the UAE needs to thrive—plus government support that helps them grow smarter and faster. DP World Invests $2.5 Billion to Expand Global Logistics Network Across Four Continents DP World is investing $2.5 billion in 2025 to expand its global logistics network, launching major infrastructure projects across India, Africa, South America, and Europe in a bid to meet surging demand for more resilient and integrated supply chain solutions.
Arabian Post
06-05-2025
- Business
- Arabian Post
Jebel Ali Free Zone's Trade Value Surpasses Dhs700bn in 2024
Jebel Ali Free Zone , one of the most prominent free trade zones in the Middle East, has achieved a remarkable milestone, with its non-oil trade value soaring to Dhs713 billion in 2024. This marks a significant 15 per cent increase compared to the previous year, underscoring Jafza's pivotal role in Dubai's economic prosperity and its continued success as a key global trade hub. As Jafza commemorates its 40th anniversary, the achievement has been hailed as a testament to the free zone's long-standing contributions to the emirate's non-oil trade sector. The milestone was celebrated by Dubai's Crown Prince, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, who emphasised Jafza's central role in shaping Dubai's economic landscape and fostering the growth of global supply chains. Sheikh Hamdan praised the free zone's sustained growth, stating that Jafza is not only a 'vital pillar' in Dubai's economic framework but also a critical enabler of international trade and investment. Since its inception in 1985, Jafza has grown from a modest industrial zone into a global business powerhouse. Over the past four decades, it has played an instrumental role in establishing Dubai as a leading commercial and logistics hub in the region. The 15 per cent trade growth in 2024 reflects not only Jafza's resilience but also the broader growth of Dubai's non-oil economy, which continues to diversify and expand. The free zone is home to over 8,000 companies spanning various sectors, including manufacturing, logistics, electronics, and consumer goods. It serves as a major gateway for companies looking to tap into the Middle East, Africa, and South Asia markets, thanks to its strategic location and world-class infrastructure. In addition to the high trade volumes, Jafza's ability to foster international business relationships has attracted investments from global players, further solidifying Dubai's position as a leader in international trade. The logistics and supply chain sectors have been at the forefront of Jafza's success. As global trade patterns evolve, the free zone has capitalised on its advanced infrastructure, including a state-of-the-art port facility, a well-connected transport network, and proximity to the region's busiest airport. This strategic location enables companies to seamlessly connect with markets worldwide, making Jafza a highly attractive proposition for businesses seeking to expand their global footprint. In addition to its infrastructure, Jafza has been a key facilitator of innovation and technological advancements. By providing a platform for companies to engage with cutting-edge technologies, including automation, AI, and robotics, Jafza has supported the modernisation of global supply chains. These innovations have not only enhanced operational efficiency but have also helped businesses adapt to the ever-changing demands of international trade. Dubai's commitment to enhancing its economic and business environment has been another key factor in Jafza's sustained growth. Over the years, the government has introduced a series of measures aimed at improving the ease of doing business in the emirate, such as streamlining regulatory processes, offering tax incentives, and providing various support services for businesses. These initiatives have made Jafza an even more attractive destination for both established companies and start-ups alike. The 40th anniversary celebrations were not only an opportunity to reflect on Jafza's achievements but also to look ahead to its future. Sheikh Hamdan's remarks underscored the importance of maintaining Jafza's competitive edge, with plans to further enhance its infrastructure and services to meet the demands of an increasingly globalised market. As Dubai continues to position itself as a world-class destination for trade and investment, Jafza is set to play an even greater role in shaping the emirate's economic future. As Jafza looks to the future, the focus remains on strengthening its position as a global logistics and trade hub. With Dubai's strategic vision for 2030 and beyond, Jafza is expected to continue evolving, embracing technological advancements and expanding its offerings to attract more international companies. The free zone's success is a critical component of Dubai's broader economic diversification strategy, which aims to reduce the emirate's dependence on oil revenues and establish sustainable growth across various sectors. Jafza's achievements are not limited to trade figures alone. The free zone has been instrumental in creating jobs, fostering entrepreneurship, and contributing to the local economy. With its state-of-the-art infrastructure, business-friendly policies, and strategic location, Jafza has been able to attract a diverse range of industries, further diversifying Dubai's economic base.
Zawya
01-05-2025
- Business
- Zawya
Dubai Duty Free achieves record Dhs713mln sales in April – Fourth best month ever
Dubai Duty Free has announced that sales in April reached a remarkable Dhs713 million (US$195.4 million), marking a new record for the month of April. This represents an 18% increase over April 2024 and positions April as the fourth best month on record for the airport retailer since operations began. Commenting on the April figures, Ramesh Cidambi, Managing Director of Dubai Duty Free said, 'November and December 2024 were record months, joined by January 2025, so it is great to see that April sales are in the top four monthly sales rankings now. April was a busy month passenger-wise with Eid holidays, Easter and the Arabian Travel Market pushing up passenger numbers. However, as far as we know, sales outstripped passenger numbers, which is a very positive indicator for us'. In April, the top five product categories sold were Perfumes, Liquor, Tobacco, Gold and Confectionery. Perfume sales reached Dhs128.72 million (US$35.26 million) contributing 18% of total revenue and showing an increase of 16% over the same month last year. Liquor followed closely with sales of Dhs92.50 million (US$25.34 million) an increase of 13%, while Tobacco saw a 25% increase year-on-year with sales of Dhs73.95 million (US$20.26 million). Gold sales amounted to Dhs71.57 million (US$19.61 million), contributing 10% of total revenue and an increase of 35%. Confectionery continued to demonstrate strong growth, achieving Dhs69.54 million (US$19.05 million), marking an 84% increase from the same month last year and accounting for 10% of total revenue. The Fashion boutiques in Terminal 3's Concourse A and B combined outperformed their sales from last April, recording a 12% increase. This is notable, considering that these boutiques have been lagging in sales since the first quarter of 2024. The Preloved luxury segment, which is available in the airport retailer's Reklaim outlets, delivered impressive results of Dhs9 million since it was introduced in December 2024 of which Dhs3.52 million (US$ 0.97 million) was generated in April alone. Meanwhile, the viral Dubai chocolate continued its remarkable success story with sales hitting Dhs28.60 million (US$7.84 million) in April, which is an average of Dhs1 million (US$274,000) sales per day. Other notable performers include ticket sales for the milestone Dubai Duty Free Millennium Millionaire Series 500, which was sold out within a record 7 days, underscoring strong demand for this popular promotion and adding to the total Millennium Millionaire sales for April of Dhs21 million (US$ 5.26 million). 'This robust performance can be seen across all categories both in-store and online, with online sales increasing by 3% in April. We are also seeing an increase in the average passenger spend and that is also very encouraging,' said Cidambi. Sales in Departures across the operation reached Dhs638.27 million (US$174.87 million) representing 90% of total monthly sales and an increase of 19% compared to the same period last year, while Arrivals sales reached Dhs51.22 million (US$14.04 million), representing 7% of total sales and an increase of 17% over April last year. In terms of top source markets for Dubai Duty Free, India is number one with Dhs72.14 million (US$19.76 million) sales, followed by Russia with Dhs54.62 million (US$14.97 million), Saudi Arabia with Dhs51.23 million (US$14.03 million), China with Dhs39.25 million (US$10.75 million), and the UK in fifth place with sales of Dhs36.19 million (US$9.92 million).
