In Dubai, the authorities have deliberately sought to create an environment which is well

ordered without being unduly

restrictive. As a result, Dubai offers

businessmen operating conditions

that are among the most liberal and

attractive in the region.

There are many options open to

international companies seeking to

establish a business relationship with

Dubai.

Having a presence can provide

considerable business advantages in

the Middle East. Businessmen in the region prefer to deal with someone they know and trust

and personal relationships are much more important in doing business in the Arab world than

they are in western Europe or America.

Licensing

The basic requirement for all business activity in Dubai is one of the following three categories

of licences:

Commercial licences covering all kinds of trading activity;

Professional licences covering professions, services, craftsmen and artisans;

Industrial licences for establishing industrial or manufacturing activity.

These licences are all issued by the Dubai Department of Economic Development. However,

licences for some categories of business require approval from certain ministries and other

authorities: for example;

Banks and financial institutions from the Central Bank of the UAE;

Insurance companies and related agencies from Insurance Authority;

Manufacturing from the Ministry of Finance and Industry;

Pharmaceutical and medical products from the Ministry of Health;

Contracting and Building Maintenance and some other activities from Municipality (click

here for the list of activities required Municipality Approval);

Transportation and vehicle rental activities from Road and Transport Authority (click

here for the list of activities required RTA approval);

Printing, publishing and advertising activities from National Media Council;

Cargo Clearing, Cargo packaging, Canal dredging contracting and Fishing cages

manufacturing activities from Dubai Maritime City;

Travel and tourism activities from Department of Tourism and Commerce Marketing

(DTCM).

Gymnasium Club activity from Dubai Sports Council.

Social Club registration and licensing to be completed from Community Development

Authority.

Tents, awnings and Tarpaulin manufacturing from Environment Protection Section of

Dubai Municipality.

More detailed procedures apply to businesses engaged in oil or gas production and related

industries.

Practicing some trade activities (e.g. jewellery and insurance) requires the submission of a

financial guarantee issued by a bank operating in Dubai.

In general, all commercial and industrial businesses in Dubai should be registered with the

Dubai Chamber of Commerce and Industry.

Ownership Requirements

Fifty-one per cent participation by UAE nationals is the general requirement for all UAE

established companies except:

Where the law requires 100% local ownership;

In the Jebel Ali Free Zone;

In activities open to 100% AGCC ownership;

Where wholly owned AGCC companies enter into partnership with UAE nationals;

In respect of foreign companies registering branches or a representative office in Dubai;

In professional or artisan companies (eg. consulting, educational service) where 100%

foreign ownership is permitted.

http://www.legal-house.com/businessmanagement.html