Dubai, often dubbed as the gateway between the East and West, is one of the most dynamic environments in the world. Its strategic location, world-class infrastructure, and business-friendly policies make it a favourite destination for international businesses looking to expand into the Middle East, North Africa, and beyond. For global brands looking to establish their presence in the UAE, a mainland trade license in Dubai is more than just a legal requirement—it’s a gateway to a wealth of opportunities.
Here, we will explore how Dubai’s mainland licenses can help global brands tap into the UAE market, expand operations across the Gulf, and build meaningful relationships with customers and partners.
A Dubai mainland license allows businesses to operate within the UAE market without restrictions on local or international trade. It is granted by the Department of Economic Development (DED) and is necessary for any company looking to set up on the mainland, which is outside of free zones. Mainland licenses are available for different types of businesses, including commercial, industrial, and professional services, depending on the nature of the operations.
1. Unrestricted Market AccessOne of the biggest benefits of acquiring a Dubai mainland trade license is unrestricted market access. Businesses with a mainland license are free to conduct operations anywhere in the UAE, including in cities like Abu Dhabi, Sharjah, and the wider GCC region. This is a major advantage for global brands that aim to scale quickly across the region.
Access to a Local Client Base: With a mainland license, global companies can provide their products or services directly to UAE nationals, residents, and businesses. This is vital for brands looking to establish a strong foothold in one of the world’s most lucrative markets.
Direct Trading with Local Businesses: Mainland businesses can trade directly with other UAE-based businesses, including government entities. This level of access is important for international companies looking to build B2B relationships in the UAE.
By obtaining a mainland license in Dubai, global companies can open their doors to the full range of opportunities the UAE has to offer—without restrictions.
2. Ability to Secure Larger SpacesAnother benefit of a Dubai mainland license is the ability to lease larger spaces, like commercial offices, retail outlets, or industrial warehouses, within the mainland of Dubai. Free zones, while providing excellent benefits, often come with limitations on the size of spaces and the nature of businesses that can operate within them.
For global brands that want to set up stores, large warehouses, or expansive offices, the mainland option provides more flexibility in terms of space. Brands looking to build a high-profile office in prime commercial areas such as Downtown Dubai, Sheikh Zayed Road, or near Dubai International Airport can do so with ease, using a mainland license.
3. Improved Brand VisibilitySetting up a business with a mainland trade license in Dubai often comes with enhanced brand visibility. Unlike free zones, where many businesses may not be well known to the general public, mainland businesses are seen as part of the wider economic landscape. This can help in building a local reputation faster, improving brand awareness, and giving businesses an edge over competitors that might be restricted to smaller, niche markets.
For global brands, having a presence in the heart of Dubai through a mainland license helps build credibility and trust.
4. Ability to Trade with Government EntitiesIn Dubai, there are numerous government tenders and projects are open only to businesses that are licensed on the mainland. Whether it’s about infrastructure projects, government contracts, or other large-scale ventures, many of these opportunities require companies to have a Dubai mainland license to qualify for bids.
For global brands planning to expand their portfolio or increase market share in the UAE, access to government contracts can be highly profitable. The Dubai government actively encourages foreign investment, and mainland companies benefit from an easier access compared to free zone companies or those with offshore licenses.
5. No Need for a Local Sponsor in All CasesA main concern for many global brands considering setting up in Dubai is the requirement to have a local sponsor. Normally, foreign businesses need to partner with a local sponsor or service agent, where the local entity would hold a majority of shares (51%) in the business. However, recent reforms introduced have allowed 100% foreign ownership in several sectors, reducing the need for a local sponsor in some cases.
Although some sectors may still require a local sponsor, the flexibility and reforms that Dubai has introduced make it easier for global brands to operate independently. This encourages many global brands to set up their operations in Dubai without being constrained by sponsorship needs.
6. Strategic LocationThe strategic location between Europe, Asia, and Africa is one of Dubai’s biggest advantages. For global brands, Dubai provides an ideal base for regional expansion, thanks to its proximity to emerging markets across the Middle East, Africa, and South Asia. Acquiring a Dubai mainland trade license offers companies the ability to operate across the entire UAE and the wider region, giving them the flexibility to expand into new markets without the need for multiple setups. By securing a mainland license, global brands can benefit from Dubai’s robust infrastructure, and aviation network to facilitate the movement of goods and services across borders.
7. Simplified Visa ProcessesSetting up a mainland company in Dubai helps simplify the visa and residency processes for business owners and employees. When a business is licensed under Dubai’s mainland, it has the ability to sponsor employees for work visas, as well as offer residency permits to staff and management. Global companies can build a fully functioning team in the UAE, including foreign employees and key executives, without the need for third-party sponsorship.
Also, as part of its business-friendly policies, Dubai has introduced several initiatives to make the visa and residency process easier, including the Golden Visa program, which provides long-term residency options for entrepreneurs, and skilled professionals.
One of the advantages of choosing a mainland license in Dubai is the streamlined setup process. Although setting up a mainland business can involve more paperwork compared to free zones, the process has been simplified over the years. With the support of a business setup company in Dubai, the licensing process is quicker and more transparent, reducing unnecessary delays. Global brands can depend on the expertise of business setup consultants in Dubai to ensure that all paperwork, including trade licenses, visas, and other legal documents, are processed in an efficient manner.
ConclusionFor global brands looking to expand into the Middle East, acquiring a Dubai mainland license is a major step toward securing unrestricted market access, building brand visibility, and capitalizing on Dubai’s strategic advantages. With benefits like direct trade access, government contract eligibility, and the ability to lease prime commercial locations, a mainland trade license in Dubai provides global companies the flexibility and opportunities they need to thrive.
By partnering with a business setup company in Dubai like Bizvise, global companies can navigate the licensing process with ease, ensuring they are positioned for long-term success in one of the world’s most exciting markets.