Business in the UAE: main pros and cons

The United Arab Emirates have long been recognized as one of the most attractive destinations. Dubai takes the lead as the business capital of the region, combining lenient legislation, developed infrastructure, and a favorable tax system. In 2025, more and more foreign investors are interested in how to open a business in Dubai and what steps need to be taken for a legal launch of their company in the UAE.

Why Entrepreneurs Choose Dubai?

The reasons why businessmen pay attention to Dubai are obvious. The city offers a high standard of living, political stability, and an economy oriented towards global markets. Thanks to numerous free trade zones, a foreign investor can own 100% of their company without involving a local partner. This is especially important for those who want to run a transparent and fully controlled business.

Moreover, there is no personal income tax, and the corporate tax does not exceed 9%, making Dubai one of the most tax-efficient jurisdictions for small and medium-sized businesses. High investor protection, modern logistics, and digitalization processes make it easy to adapt to the local environment even without a deep knowledge of the Arabic language.

How to Open a Business in Dubai: Step-by-Step Guide and Jurisdiction Selection

The process of launching commercial activities requires a careful approach to the type of jurisdiction. The list of steps to start a business includes:

• defining the niche and business format;
• selecting the jurisdiction and preparing the founding documents;
• submitting a license application to the chosen regulator;
• renting an office (virtual or physical);
• opening a corporate account in a local bank;
• obtaining a UAE residency visa for business purposes.

This sequence allows you to meet all requirements and avoid delays in the permit acquisition stage.

What Documents Are Needed for Registration?

The registration procedure takes from 5 to 15 working days, depending on the chosen zone and type of license. A standard set of documents is required for registration, although in some cases, clarification of funding sources may be necessary—especially when obtaining a residency visa for investments in real estate or opening a deposit in a major bank. The minimum package includes:

• copies of passports of all participants;
• proof of address outside the UAE;
• description of the business model (in the form of a brief plan);
• certificate of no criminal record;
• office or workspace lease agreement.

After obtaining the license, you can proceed to the next step—applying for residency visas for yourself and family members, completing the process of how to open a business in Dubai.

Golden Visa and Business Immigration through Investments

The UAE offers long-term residency visas, including the so-called Golden Visa, which is issued for up to 10 years. It can be obtained for significant investments in the economy, including launching an innovative project, participating in venture funds, or acquiring real estate above a certain amount.

It is important to understand that starting a business in Dubai is not just about commerce but also about strategic migration planning. Along with the license and residency visa, the entrepreneur gains the right to invite a spouse, children, and in some cases, parents, provided all family members are supported.

Opening a Bank Account and Taxation Specifics

After obtaining the license, it is necessary to open a bank account—a key step in the process of how to open a business in Dubai. In 2025, bank requirements have become stricter: detailed information about the company’s activities, founders, beneficiaries, and funding sources will be required. Without a bank account, conducting business will be practically impossible.

From a taxation perspective, businesses in the UAE continue to offer competitive conditions: 0% personal income tax, 9% corporate tax (if profits exceed 375,000 dirhams), and a 5% standard VAT rate on goods and services.

Rules may vary depending on the zone in which the company is registered. Therefore, it is important to consult with lawyers or licensed agents before registration.

Which Sectors Are Particularly Relevant in 2025?

In the current conditions, the region stimulates the development of high-tech and export-oriented industries—an important context for those exploring how to open a business in Dubai. The city actively invests in digital transformation, green economy, logistics, and medical innovations. Key sectors for starting a business include:

• e-commerce and last-mile logistics;
• consulting, marketing, IT solutions;
• medicine, pharmaceuticals, biotechnology;
• real estate, leasing, and asset management;
• education and EdTech platforms.

The choice of direction not only affects the speed of obtaining a license but also the opportunities to obtain a Golden Visa, which requires the project to have a certain level of significance for the Emirates’ economy.

Legal Protection and Business Conduct Conditions

The legal environment in Dubai is geared towards protecting investors’ interests. Arbitration courts, English law in free zones, electronic document flow—all create a highly comfortable environment for development. An investor can expect quick dispute resolution, capital protection, and confidentiality guarantee.

Understanding how to open a business in Dubai should start with studying the rules of interaction with the local jurisdiction. Compliance with the law is the key factor for success. Having an office, transparent profits, correct employee registration, and timely submission of tax declarations are the minimum requirements to maintain the license.

How to Open a Business in Dubai: Key Points

In 2025, the question of “how to open a business in Dubai” is more relevant than ever—the city continues to develop, offering attractive conditions for foreign investors. By following all the steps: choosing the business form, obtaining a license, renting an office, opening an account, and obtaining a visa, the entrepreneur gains full access to one of the most progressive markets in the world.

The ability to adapt to the rules and think strategically opens doors not only to business success but also to long-term business immigration, with the opportunity to access markets in the Middle East, Africa, and South Asia.

Acquiring property in the UAE may seem like a simple investment, especially against the backdrop of the absence of income tax. However, any deal in the Emirates is accompanied by mandatory financial expenses. The costs of buying real estate in Dubai include not only the payment for the property itself but also dozens of additional fees and duties. And if the buyer does not study the system in advance, the budget may unexpectedly increase by 8-10%.

For proper planning, it is worth analyzing the cost structure — from official payments to government agencies to hidden commissions and insurance. This is especially relevant for those considering long-term investments in Dubai real estate.

Mandatory fees and commissions

Any real estate transaction is accompanied by clearly defined expenses. They are regulated at the state level and do not depend on whether the property is purchased from a developer or on the secondary market. Let’s consider the parameters in more detail:

• registration fee — 4% of the property value, transferred to the Land Department;
• administrative fee — a fixed amount, usually around 580 dirhams;
• agent’s commission — 2% of the price;
• property ownership registration certificate — paid separately, around 250 dirhams;
• notarial support — depending on the company and the complexity of the transaction.

The listed expenses for purchasing property are mandatory. Their payment is necessary to complete the registration and obtain all rights to the property.

Mortgage and additional expenses when buying property in Dubai

If buying a property involves a bank loan, the list of expenses significantly expands. In addition to the main payment for the property, the buyer will need to take into account a number of additional costs associated with the financing process. For example, there is a mortgage fee, which is 0.25% of the total loan amount.

Additionally, banks require a mandatory property valuation, the cost of which can reach 3,500 dirhams. Property insurance also becomes a mandatory condition — its amount is calculated individually depending on the property characteristics and the insurance company’s terms.

Separately paid is the registration of the mortgage agreement at the Land Department, as well as legal and notarial costs associated with the transaction.

These measures ensure transparency of operations and compliance with all legal norms, which is especially important for banks. That is why an investor needs to clarify the loan structure and related obligations in advance, especially if they are a non-resident of the UAE.

However, buyers with confirmed income and a positive credit history can expect more favorable conditions from banks, including reduced rates and flexible repayment terms.

Indirect expenses when buying property and hidden costs of housing in Dubai

In addition to mandatory payments, there is a category of expenses that are rarely mentioned in developers’ brochures. However, they need to be taken into account when budgeting. Hidden expenses when buying property in Dubai include:

• DEWA account transfers (electricity and water);
• deposits for utilities — not always refundable;
• complex maintenance services;
• services of lawyers and translators;
• fee for issuing electronic access cards, parking, and services from the management company;
• property transfer tax — included in the registration fee, but sometimes specified separately in some contracts.

These payments can add several thousand dirhams to the final cost, especially if the property is located in the premium segment with developed infrastructure.

Documents to prepare in advance

To avoid delays and setbacks in the property acquisition process, it is recommended to prepare all the necessary documents in advance, which will not only expedite the process but also help avoid unnecessary expenses related to delays or additional commissions.

The mandatory documents include a valid passport — both a copy and the original will be required. It is also necessary to provide a preliminary agreement with the seller or developer, especially if the transaction is at the reservation stage. In the case of purchasing with a mortgage loan, the bank will require income confirmation.

For foreign citizens, a mandatory requirement is the presence of translated and notarized documents that comply with local legislation requirements. In addition, an application for registration with the Land Department is submitted before the start of the transaction, which directly affects the expenses when buying property in Dubai.

Even with the assistance of an agent, some documents will need to be filled out personally, and the correct completion of these documents directly affects the timing of obtaining the official property ownership certificate.

Property investment: what to know about housing formats

Different types of properties — studios, apartments, villas — entail different levels of expenses. For example, when purchasing a studio in a completed building, the expenses will be lower than when investing in a property under construction. The cost of annual maintenance also varies: for high-budget villas, it is higher than for regular apartments.

Investing in Dubai real estate is profitable if you choose a format with minimal operating costs in advance. This is especially important for those planning to rent out the property and generate a stable income.

Total expenses

On average, expenses when buying property range from 7 to 9% of the property value in Dubai. The main part consists of the registration fee and agent’s commission. With a mortgage, bank fees are added. Neglecting these items can lead to an increase in the budget and delays in processing.

Before proceeding with the transaction, it is advisable to create a budget — taking into account all payments, including mortgage fees, utility deposits, administrative fees, and legal services. This approach will help accurately understand the total cost of ownership.

Expenses when buying property in Dubai: conclusions

A full understanding of the cost structure when buying property in Dubai helps avoid unexpected expenses. Regardless of whether the transaction is made with personal funds or using a mortgage, the buyer faces mandatory commissions and fees. Every investor planning to invest in real estate must consider both direct and indirect expenses. Proper financial calculation is the key to a smooth transaction and effective asset ownership in one of the most stable markets in the Middle East.