The Abu Dhabi Department of Economic Development(DED) has launched the first phase of Dual license initiative, that permits Abu Dhabi Free zone companies to practice their Business activities outside the free zone without the need for additional physical office or local sponsor /service agent
The scheme is not applicable to branch of foreign companies in the Freezones and the license is valid for a year.
All commercial and marine services related activities governed by an Abu Dhabi Free Zone and Department of Economic Development regulations can benefit from the initiative. Sectors mainly related to services, trading, FMCG and financial consultancies will reap maximum benefits.
With the new scheme, the cost of doing business in UAE is expected to come down as it will reduce accounting, administrative and operational costs associated with it. Dual licensing will give more flexibility and competitive edge to companies in the Abu Dhabi Freezones, which in turn will help improve the overall competitiveness of the emirate. More foreign companies based in Freezones are expected to expand their business in the emirate with Dual license, creating more job opportunities for many professionals.
Dual licensing is the latest in a series of initiatives that have been launched by the government to support entrepreneurs, SMEs and the private sector. In its first phase, the initiative will offer more opportunities to Free zone companies to conduct and expand their business, such as allowing them to work and partner with other government entities.
Numerous measures were taken by the UAE government off late, to boost the growth of local economy and make UAE an attractive place to do business in.