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Leveraging Dual Licensing for Strategic Business Expansion in the UAE

Leveraging Dual Licensing for Strategic Business Expansion in the UAE

For many businesses, a free zone offers the ideal launchpad in the UAE with benefits like 100% foreign ownership and zero taxes. However, free zone licenses typically restrict companies from trading directly within the UAE mainland market. The solution for ambitious companies seeking wider market access is the dual license. This strategic option allows a company registered in a participating free zone to also obtain a license from the relevant mainland Department of Economic Development (DED), enabling them to operate legally in both jurisdictions without needing a separate mainland office or sponsor.

Obtaining a dual license streamlines expansion, offering the best of both worlds. Your business can maintain its primary base and structure in the free zone while gaining the ability to engage in mainland activities, such as bidding for lucrative government contracts and selling directly to the local market. Free zones like the Dubai Multi Commodities Centre (DMCC) and others have established pathways for their member companies to acquire mainland permits. This approach is a cost-effective and efficient strategy for growth, providing unparalleled flexibility and significantly broadening your business's operational footprint across the entire UAE.