Dubai Airport Free Zone to Allow Dual Licences

by Zaara 03, Oct 2017

Dubai Airport Free Zone

It is known that by business regulation, free zone entities can operate only within their respective free zone boundaries, and are not permitted to conduct business anywhere else in the UAE. Here’s a good news for companies in Dubai Airport Free Zone: now they can obtain dual licenses to operate across Dubai.

This comes in the wake of a Memorandum of Understanding (MoU) signed between the Dubai Airport Free Zone Authority (DAFZA) and the Department of Economic Development (DED), Dubai. The MoU was signed by H.E. Sami Dhaen Al Qamzi, Director General of DED, and H.E. Dr. Mohammed Al Zarooni, Director General of DAFZA. This is in line with both the parties’ efforts to support the government of Dubai in its goal of creating a flexible and diversified innovation-driven economy. This move is likely to attract even more national and local foreign direct investment (FDI).

The MoU aims to bolster growth by licensing companies operation in DAFZA. However, for a dual license, a company must obtain an approval from DAFZA. Under the terms of the agreement, both the parties shall coordinate to enhance the degree of transparency, governance, and functioning of businesses operating in DAFZA. Licensed companies shall be monitored and inspected to check their compliance of the laws applicable to commercial activities. Moreover, DED may add or modify any activity having to do with the licensing of companies, subject to the approval of DAFZA.

Dubai Airport Free Zone was established as a free economic zone in 1996 and is one of the fastest growing free zones in the UAE, contributing 4.7 percent of Dubai's gross domestic product. It is located at Dubai International Airport. DAFZA is known for being home to companies in aviation, aerospace, IT, telecommunication, pharmaceutical, logistics, and jewelry industries. It offers exemption from personal tax, corporate tax, and import/export duties. Also, companies in DAFZA have the provision of 100% foreign ownership.

We at Commitbiz Business Setup Consultants Dubai have our team of experts to help entrepreneurs set up their business in Dubai Airport Free Zone. Should you decide to open a business in DAFZA, don’t hesitate to contact us, even if it’s just for a friendly advice.


Who announced the launch of the dual license initiative?

 The Abu Dhabi Department of Economic Development announced the launch of the dual license initiative.

How long does it take a company to get approval for a dual license?

It takes around three business days to get approval for a dual license.

What are the advantages of holding dual licenses?

A dual license allows a freezone registered company to apply for a Mainland license to perform commercial operations outside the freezone borders without purchasing extra office space.

Can the freezone able to register with the Ministry of Labour?


What limitations apply to dual licenses in freezone?

 The mainland dual license will not employ people or provide labour cards or work permits. All employees should work for the freezone company and will only be granted freezone resident visas.

If Dubai Freezone conducts any commercial activity on the mainland, how much tax percentages may they pay?


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