Global (عربي)
KSA (عربي)
Global (عربي)
Over the past decades the UAE has established itself as a hub for commerce and business in the MENA region, with a central geographic location, mature financial and investment markets, as well as legislation and regulation that encourage investment.
Licensing a business in the UAE takes many forms and paths, depending on the type of business activity, sector and foreign ownership requirements, the structure of the company, which emirate the business is set up in and whether it is in a freezone or in the mainland.
Each of these factors comes with its own licensing procedures and regulatory requirements.
Read more about: How to open a business in the UAE?
Generally speaking, as of 2020, business activity in the UAE can be divided into six categories, according to the UAE’s Economic Ministry.
That is not to say that these are the only types of licenses available in the UAE, but that most businesses generally operate under one of these six categories:
Industrial; commercial; crafts; tourism; agricultural; and professional. We break these down further below, but before we do, we need to acknowledge a number of caveats:
Caveat #1- The UAE recognizes over 2,000 business and economic activities.
Caveat #2- A license can include more than one business activity.
Caveat #3- A number of other business activities are regulated differently and have their own special licensing, such as fintech, financial services or e-commerce.
Read more about: The Rise of Fintech in the UAE in 2025
The UAE’s commercial license covers companies involved in trading and commerce – the buying and selling of goods and services.
This includes a host of business activities, such as: Import/exports activities, retail, general trading, real estate brokerage, and logistics.
These are usually issued by the Economic Development Departments of the emirate where the business activity will take place or by the free zone authority.
The industrial license covers companies involved in industry and manufacturing operations that transform raw goods or components into finished, value-added products.
Examples of this include textile factories, food industry products, chemical plants, and packaging products.
While these are usually issued by the Economic Development Departments of the emirate in which the business activity will take place or by the free zone authority, industrial licenses may require additional approvals from the Ministry of Industry and Advanced Materials.
These licenses are there for skilled manual labor and services or small trades. This is the type of license a carpenter, electrician, or plumber may receive and is issued by the Economic Development Departments of the emirate in which the business activity will take place.
As the name suggests, the tourism license is there for companies in the hospitality, travel and tourism sectors and covers everything from travel agencies, hotels and resorts, tour operators or event planners.
Licensing is usually provided by the Department of Economy and Tourism of Dubai if the company plans to operate there or the local tourism authority of another emirate.
The UAE’s agricultural license is there to cover all activities that are related to farming, agriculture, livestock and fisheries.
Operations under it include farms, plantations, greenhouses, fisheries, dairy farms and pastures. These too are provided by the economic development department but must include approvals from the environmental and agricultural regulators.
This license gives individuals and companies the ability to provide professional services to the public that are usually characterized by having the relevant educational qualifications.
The professions covered under this license are extensive, and include everything from the teaching, artisanal work, design, hairdressing services to IT services, legal and medical advisory, and medical consultancies.
As with others on this list, this license can be issued by the economic development department or the free zones authority. It is worth noting that the professional license is among those that allow foreigners to own 100% of their businesses.
Read more about: Value Added Taxes (VAT) in the UAE
Disclamer:
This post is for educational purposes only, and does not constitute investment advice or a solicitation to take any financial action. It should not be relied upon when making investment or financing decisions.
