Dubai is making a significant stride in enhancing its business environment by upgrading its long-term business licensing scheme. This move, intended to attract more investors and business owners, is set to include offering “golden” licences, as reported by company formation experts to AGBI. These enhanced licences, including options that extend up to a decade, which were previously limited to select free zones, are now planned to be made available across a broader range of areas at competitive prices.
Neha Thomas, Head of Marketing at Dubai-based business setup adviser Creative Zone, noted that traditionally, multinational corporations aiming for regional success have been the primary applicants for these long-term licences. Businesses that can manage the higher upfront costs, amounting to AED 40,000 for five years and AED 60,000 for ten years, find substantial value in committing to the emirate for an extended period.
However, James Swallow, Commercial Director at the company formation consultancy PRO Partner Group, pointed out that currently, only a limited number of companies in Dubai hold multi-year licences, with the majority grappling with annual renewals. This prevailing system burdens businesses with administrative pressures and lacks long-term security.
Swallow anticipates that the new licensing scheme could be extended to mainland companies and might include golden visas for business owners, competitive pricing, and more streamlined procedures. Sectors critical to Dubai’s economic and sustainability goals are likely to receive priority for these extended permits.
Initiatives like the Work Bundle, in collaboration with the Ministry of Human Resources and Emiratisation, and the Invest in Dubai digital platform aim to significantly reduce processing times for employment and residency permits. These efforts are directed toward establishing a stable, long-term business environment conducive to foreign investors and residents.
According to a Dubai-based lawyer, discussions are ongoing about potentially easing mainland business licence regulations, such as the office lease requirement, to make Dubai more attractive for companies. However, these considerations are still under review. The overarching aim is to retain capital within the country through upfront payment collection, especially as some businesses close or choose not to renew their licenses.
Abeer Al Husseini, a partner at the immigration law practice Fragomen in Dubai, cautioned that with extended licence periods, the government must implement strict checks and balances. This is to ensure businesses remain compliant with local regulations and standards throughout their operation.
The UAE has been progressively making its visa policies more flexible as part of economic reforms aimed at reducing dependency on oil. This includes offering longer residencies for certain investors, students, and professionals, and recently removing the AED 1 million minimum down-payment requirement for a golden visa through real estate investment.
As economic competition intensifies within the GCC, with Saudi Arabia offering residency incentives and tax exemptions for companies setting up regional headquarters, and Bahrain’s golden licence initiative attracting significant investment, Dubai’s move to enhance its business licensing scheme is timely. It positions the emirate as an increasingly attractive destination for businesses and investors looking to benefit from its dynamic and supportive business environment.
