Dubai’s Dual Licensing Incentives Office Realty

Dubai Free Zones (DFZ) Council announced new initiatives that allow 100% foreign owned free zone companies to extend their operations to the “mainland” without the need to obtain a second license. Currently, free zone authorities which have signed an agreement with Department of Economic Development to offer dual-licenses are DIFC, DWTC, DAFZA and DMCC. This move has the potential to transform the business as well as the commercial real estate landscape. This will be the catalyst for increased business activity, which will inevitably lead to a more vibrant and activated commercial real estate market. As per current legislative framework FZ Companies are only allowed to operate and trade within their respective free zones. This change will prompt companies to consider relocating to the mainland areas to take advantage of attractively priced office spaces. We contacted DMCC Free Zone Authorities in order to investigate if the new initiative will be implemented soon but we did not receive any certain date about when the initiative will become operational.

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