Introduction: Why UAE Remains a Business Haven
The United Arab Emirates (UAE) is not just a country — it’s a global economic magnet. In 2025, it continues to strengthen its reputation as a powerhouse for business innovation, investment, and strategic growth. At the crossroads of East and West, the UAE offers unmatched geographic advantages, top-tier infrastructure, a resilient economy, and a forward-looking government that is actively rewriting the rules of global entrepreneurship.
In a monumental shift this year, Dubai has allowed Free Zone companies to expand into the mainland without needing to set up a separate entity. This change opens up unprecedented opportunities for investors and startups previously constrained by trade limitations. At Arab Asset Consulting, we’re here to ensure your business is best positioned to take advantage of these sweeping reforms.
What Makes the Dubai So Attractive in 2025?
1. Full Foreign Ownership & Deregulation
Reforms introduced in recent years have culminated in 100% foreign ownership for most business activities. This represents a seismic change from the days when local sponsorship (51% UAE national ownership) was mandatory.
2. Business-Friendly Tax Environment
There is still no personal income tax in the UAE. The newly implemented corporate tax of 9% (starting FY 2024) only applies above a certain income threshold (AED 375,000), and various exemptions exist for Free Zone companies that qualify as Qualifying Free Zone Persons.
3. Infrastructure Built for the Future
From the Hyperloop feasibility study to smart city developments in Dubai and Abu Dhabi, the UAE is investing billions in infrastructure. Whether it’s global logistics via Jebel Ali Port or digital infrastructure for fintech startups, the UAE offers robust support for growth.
4. Strategic Location
With direct access to Africa, Asia, and Europe, businesses in the UAE can operate across three continents within hours. This advantage is central for logistics, e-commerce, finance, and consultancy firms.
5. Quality of Life
A cosmopolitan lifestyle, world-class healthcare, safety, and tax-free salaries make the UAE a hotspot for top international talent. For businesses, this translates into a diverse, skilled workforce.
Understanding Dubai Business Jurisdictions: Free Zone vs Mainland
Before diving into the recent changes, it’s important to understand the fundamental differences between Mainland and Free Zone setups.
Mainland Companies
- Licensed by the Department of Economic Development (DED).
- Can operate anywhere in the UAE without restrictions.
- Eligible to bid on government contracts.
- Historically required a local sponsor, but many sectors now allow 100% foreign ownership.
- Subject to UAE corporate tax and full audit requirements.
Free Zone Companies
- Registered in one of 40+ economic Free Zones (e.g., DMCC, JAFZA, IFZA).
- Enjoy 100% foreign ownership, repatriation of profits, and no import/export duties within the zone.
- Previously restricted from trading directly in the UAE mainland (required a local distributor or branch).
- Often exempt from corporate tax if they qualify.
- Fast setup times and flexible office requirements.
Major Update for 2025: Free Zone Companies Can Now Operate in Dubai Mainland
As per Executive Council Resolution No. (11) of 2025, Free Zone companies in Dubai can now expand into the mainland without the need to set up a separate mainland entity.
What Does This Mean?
Previously, Free Zone companies couldn’t offer services or products directly to the Dubai market without forming a mainland subsidiary or partnering with a local distributor. That barrier is now eliminated.
Key Details of the New Regulation
- License Options:
- Branch of the Free Zone entity.
- Mainland branch headquartered in the Free Zone.
- Temporary permits for specific, project-based work.
- Conditions:
- Separate accounting and financial records must be maintained.
- Companies must comply with UAE tax, labor, and regulatory laws applicable to mainland entities.
- Timeline:
- Free Zone companies now have 12 months to comply with the new licensing structures.
- Extensions can be granted upon approval.
Strategic Benefits:
- Access to government contracts.
- Open trading with local Dubai markets.
- Ability to expand workforce and office locations flexibly.
Mainland vs Free Zone
| Feature | Mainland | Free Zone | Post-2025 Free Zone Expansion |
|---|---|---|---|
| Ownership | 100% foreign (most sectors) | 100% foreign | 100% foreign |
| Market Access | Full UAE access | Within Free Zone & abroad | Full UAE access |
| Licensing | DED | Respective Free Zone | Dual-licensed (Free Zone + DED) |
| Taxation | 9% Corporate Tax | 0% if qualified | 9% on mainland income |
| Office Requirements | Physical required | Flexi-desk allowed | Depends on scope of mainland work |
| Visa Eligibility | Unlimited (based on office space) | Capped (usually 6-7) | To be aligned with mainland rules |
| Audit | Mandatory | Varies by zone | Mandatory for mainland revenue |
Costs in 2025
Starting a Mainland Company
- Approximate Costs: AED 20,000 to AED 40,000
- Includes DED license, office rental, and registration fees.
Starting a Free Zone Company
- Approximate Costs: AED 12,900 to AED 50,000+
- Varies by zone (e.g., cheaper in Sharjah or Ajman Free Zones, premium in DMCC or DIFC).
- Post-2025: Additional licensing costs for mainland access may apply.
Why Partner with Arab Asset Consulting?
We understand that setting up a company in a foreign market can feel overwhelming. At Arab Asset Consulting, our goal is to be your local ally — simplifying each step and maximizing your chances of success.
Our Core Services:
Business Setup & Licensing
We assess your goals, recommend the ideal structure (mainland vs free zone), and handle all paperwork, licensing, and government approvals.
Branding & Marketing
Enhance your business visibility with Arab Asset’s expert branding and website development services
Mainland Expansion for Free Zone Companies
We guide you through the 2025 law updates, manage your DED licensing, ensure compliance with mainland laws, and coordinate with free zone authorities for seamless dual operation.
Tax Planning & Compliance
We help you navigate VAT, corporate tax, and Free Zone tax exemptions to keep your financials optimized and compliant.
Visa & HR Services
From employee visas to labor contracts and Emiratisation regulations, we provide comprehensive HR support.
Office & PRO Solutions
Need a flexi-desk, warehouse, or retail space? We help you find the right location and deal with Ejari registration, municipality approvals, and tenancy contracts.
Frequently Asked Questions
Can I trade directly with customers in Dubai if I own a Free Zone company?
Yes. As per the new regulation in 2025, you can apply for a license to operate directly in the mainland while maintaining your Free Zone entity.
Is corporate tax mandatory?
Yes, but only on taxable income exceeding AED 375,000 annually. Free Zone companies may still be exempt if they meet “Qualifying Free Zone Person” criteria.
Can I open a bank account with a Free Zone company?
Yes, though it may take longer compared to mainland setups. Most banks require a physical office address, which we can help provide.
Do I need to visit the UAE in person to open my business?
Not necessarily. Many Free Zones allow remote incorporation. However, mainland setups typically require in-person verification, though we can streamline this with power of attorney services.
Final Thoughts: Why Now Is the Best Time to Invest in UAE
2025 is a defining year for doing business in the UAE. The government’s recent reforms — especially allowing Free Zone businesses to enter the mainland without major structural changes — represent a historic shift toward flexibility, accessibility, and scalability.
Whether you’re a startup, SME, or multinational, Arab Asset Consulting is your strategic partner for navigating this dynamic environment. We don’t just help you register a company — we help you launch a legacy.
Contact Us Today
Email: info@arabassetconsulting.com
Website: www.arabassetconsulting.com
Phone: +971-56-2722-055
Let us turn your business ambition into reality — right here in the UAE.
Introduction: Why UAE Remains a Business Haven
The United Arab Emirates (UAE) is not just a country — it’s a global economic magnet. In 2025, it continues to strengthen its reputation as a powerhouse for business innovation, investment, and strategic growth. At the crossroads of East and West, the UAE offers unmatched geographic advantages, top-tier infrastructure, a resilient economy, and a forward-looking government that is actively rewriting the rules of global entrepreneurship.
In a monumental shift this year, Dubai has allowed Free Zone companies to expand into the mainland without needing to set up a separate entity. This change opens up unprecedented opportunities for investors and startups previously constrained by trade limitations. At Arab Asset Consulting, we’re here to ensure your business is best positioned to take advantage of these sweeping reforms.
What Makes the Dubai So Attractive in 2025?
1. Full Foreign Ownership & Deregulation
Reforms introduced in recent years have culminated in 100% foreign ownership for most business activities. This represents a seismic change from the days when local sponsorship (51% UAE national ownership) was mandatory.
2. Business-Friendly Tax Environment
There is still no personal income tax in the UAE. The newly implemented corporate tax of 9% (starting FY 2024) only applies above a certain income threshold (AED 375,000), and various exemptions exist for Free Zone companies that qualify as Qualifying Free Zone Persons.
3. Infrastructure Built for the Future
From the Hyperloop feasibility study to smart city developments in Dubai and Abu Dhabi, the UAE is investing billions in infrastructure. Whether it’s global logistics via Jebel Ali Port or digital infrastructure for fintech startups, the UAE offers robust support for growth.
4. Strategic Location
With direct access to Africa, Asia, and Europe, businesses in the UAE can operate across three continents within hours. This advantage is central for logistics, e-commerce, finance, and consultancy firms.
5. Quality of Life
A cosmopolitan lifestyle, world-class healthcare, safety, and tax-free salaries make the UAE a hotspot for top international talent. For businesses, this translates into a diverse, skilled workforce.
Understanding Dubai Business Jurisdictions: Free Zone vs Mainland
Before diving into the recent changes, it’s important to understand the fundamental differences between Mainland and Free Zone setups.
Mainland Companies
- Licensed by the Department of Economic Development (DED).
- Can operate anywhere in the UAE without restrictions.
- Eligible to bid on government contracts.
- Historically required a local sponsor, but many sectors now allow 100% foreign ownership.
- Subject to UAE corporate tax and full audit requirements.
Free Zone Companies
- Registered in one of 40+ economic Free Zones (e.g., DMCC, JAFZA, IFZA).
- Enjoy 100% foreign ownership, repatriation of profits, and no import/export duties within the zone.
- Previously restricted from trading directly in the UAE mainland (required a local distributor or branch).
- Often exempt from corporate tax if they qualify.
- Fast setup times and flexible office requirements.
Major Update for 2025: Free Zone Companies Can Now Operate in Dubai Mainland
As per Executive Council Resolution No. (11) of 2025, Free Zone companies in Dubai can now expand into the mainland without the need to set up a separate mainland entity.
What Does This Mean?
Previously, Free Zone companies couldn’t offer services or products directly to the Dubai market without forming a mainland subsidiary or partnering with a local distributor. That barrier is now eliminated.
Key Details of the New Regulation
- License Options:
- Branch of the Free Zone entity.
- Mainland branch headquartered in the Free Zone.
- Temporary permits for specific, project-based work.
- Conditions:
- Separate accounting and financial records must be maintained.
- Companies must comply with UAE tax, labor, and regulatory laws applicable to mainland entities.
- Timeline:
- Free Zone companies now have 12 months to comply with the new licensing structures.
- Extensions can be granted upon approval.
Strategic Benefits:
- Access to government contracts.
- Open trading with local Dubai markets.
- Ability to expand workforce and office locations flexibly.
Mainland vs Free Zone
| Feature | Mainland | Free Zone | Post-2025 Free Zone Expansion |
|---|---|---|---|
| Ownership | 100% foreign (most sectors) | 100% foreign | 100% foreign |
| Market Access | Full UAE access | Within Free Zone & abroad | Full UAE access |
| Licensing | DED | Respective Free Zone | Dual-licensed (Free Zone + DED) |
| Taxation | 9% Corporate Tax | 0% if qualified | 9% on mainland income |
| Office Requirements | Physical required | Flexi-desk allowed | Depends on scope of mainland work |
| Visa Eligibility | Unlimited (based on office space) | Capped (usually 6-7) | To be aligned with mainland rules |
| Audit | Mandatory | Varies by zone | Mandatory for mainland revenue |
Costs in 2025
Starting a Mainland Company
- Approximate Costs: AED 20,000 to AED 40,000
- Includes DED license, office rental, and registration fees.
Starting a Free Zone Company
- Approximate Costs: AED 12,900 to AED 50,000+
- Varies by zone (e.g., cheaper in Sharjah or Ajman Free Zones, premium in DMCC or DIFC).
- Post-2025: Additional licensing costs for mainland access may apply.
Why Partner with Arab Asset Consulting?
We understand that setting up a company in a foreign market can feel overwhelming. At Arab Asset Consulting, our goal is to be your local ally — simplifying each step and maximizing your chances of success.
Our Core Services:
Business Setup & Licensing
We assess your goals, recommend the ideal structure (mainland vs free zone), and handle all paperwork, licensing, and government approvals.
Branding & Marketing
Enhance your business visibility with Arab Asset’s expert branding and website development services
Mainland Expansion for Free Zone Companies
We guide you through the 2025 law updates, manage your DED licensing, ensure compliance with mainland laws, and coordinate with free zone authorities for seamless dual operation.
Tax Planning & Compliance
We help you navigate VAT, corporate tax, and Free Zone tax exemptions to keep your financials optimized and compliant.
Visa & HR Services
From employee visas to labor contracts and Emiratisation regulations, we provide comprehensive HR support.
Office & PRO Solutions
Need a flexi-desk, warehouse, or retail space? We help you find the right location and deal with Ejari registration, municipality approvals, and tenancy contracts.
Frequently Asked Questions
Can I trade directly with customers in Dubai if I own a Free Zone company?
Yes. As per the new regulation in 2025, you can apply for a license to operate directly in the mainland while maintaining your Free Zone entity.
Is corporate tax mandatory?
Yes, but only on taxable income exceeding AED 375,000 annually. Free Zone companies may still be exempt if they meet “Qualifying Free Zone Person” criteria.
Can I open a bank account with a Free Zone company?
Yes, though it may take longer compared to mainland setups. Most banks require a physical office address, which we can help provide.
Do I need to visit the UAE in person to open my business?
Not necessarily. Many Free Zones allow remote incorporation. However, mainland setups typically require in-person verification, though we can streamline this with power of attorney services.
Final Thoughts: Why Now Is the Best Time to Invest in UAE
2025 is a defining year for doing business in the UAE. The government’s recent reforms — especially allowing Free Zone businesses to enter the mainland without major structural changes — represent a historic shift toward flexibility, accessibility, and scalability.
Whether you’re a startup, SME, or multinational, Arab Asset Consulting is your strategic partner for navigating this dynamic environment. We don’t just help you register a company — we help you launch a legacy.
Contact Us Today
Email: info@arabassetconsulting.com
Website: www.arabassetconsulting.com
Phone: +971-56-2722-055
Let us turn your business ambition into reality — right here in the UAE.
