The most frustrating part of setting up a business is the legal part. Yes, specialists are there to help you with any difficulties, but you’re dealing with legal aspects and you need to have a general idea about them. If you are in the process of starting a business in Dubai and got to the legal part, I have information that you will definitely need. Commercial law in Dubai has its nuances and I briefly discussed them in this article.

UAE has relatively supportive legal framework

The UAE encourages foreigners and locals to start a business and invest in the economy of the country. Complicated legal procedures, by far, don’t motivate businessmen to found new companies, so the government took a simple approach. There are several laws that businessmen should be introduced to when starting a business in Dubai. The basic business laws in Dubai require a commercial license, a professional license and an industrial license. The founders can get the licenses from the Dubai Economic Department. Additional approvals might be mandatory from bodies like  Central Bank of UAE, Insurance companies, the Ministry of Economy and Commerce.

In addition to basic laws, there are a couple more to consider:

  1. Foreign Investment Law

This low grants Non-UAE citizens the permission to start a business in the territory of the UAE. This law regulates the activities of foreigners in the country. The law includes points about taxes, advantages, guarantees, and duties.

  1. Competition Law

The government is following the suggestion made by the World Trade Organization. It’s important for the government to create an ecosystem where foreigners can enjoy healthy competition without monopolies or unfair privileges.

  1. Federal Law on Commercial Companies

This law requires reporting general frameworks for corporate governance. The framework is supposed to guarantee the protection of shareholders, provide transparency and hold the company’s board responsible for any fraudulent activities.


  1. Law on Commercial Arbitration

In the case of commercial disagreements, the commercial arbitration law interferes. The law states that civil cases will be heard by the civil courts of the United Arab Emirates. The Abu Dhabi Federal Court of Appeal, on the other hand, will conduct the hearings on international cases.


Dubai is free trade zone country, which means it’s open to new businesses. However, it doesn’t mean anyone can enter the country, at any given time and establish a new business institution. Spend some time on understanding the legal part because a wrong move can cost you a lot of loss.