The emirate of Dubai is located in the United Arab Emirates (UAE), perched on the western corner of the Arabian peninsula and set right along the Persian Gulf. Since the late 1990s and the early part of the twenty-first century, Dubai has been gaining worldwide attention for its architectural innovation and as a major tourist hub. Due to its ongoing popularity, Dubai has experience significant growth in its real estate industry. Investors who plan to open a real estate company in Dubai have a range of opportunities and significant flexibility in getting their business up and running. Setting up a real estate company in Dubai is largely a matter of following the start-up rules and ensuring that the business is correctly licensed.

Supplies Needed:

Business plan

Marketing plan

Instructions:

Step 1: Select the type of business structure that you will use in your business. Dubai allows for several different types of business structures, all of which are similar to business structures for American or British companies. For instance, you may choose a General Partnership or a Partnership-in-Commendam, which is a form of Limited Partnership. You also have the option of a Joint Venture Company, as well as a Public or Private Shareholding Company. Finally, you may choose a Limited Liability Company or a Sole Proprietorship

Step 2: Establish the correct amount of foreign and local ownership required for your business structure. For a Limited Liability Company, as well as all Partnership variations, Dubai requires that at least 51 percent of the company ownership must be local – or owned by a United Arab Emirates national – while you may own no more than 49 percent of these types of companies. You may, however, own the full 100 percent of a Sole Proprietorship in Dubai.

Step 3: Apply for the licensing required to set up a real estate company in Dubai. You will need a Commercial License, and possibly a Professional License, to operate a real estate business in Dubai. Contact the Department of Economic Development to find out which licenses they require for you to operate your real estate business in Dubai. For example, a company that does real estate investing or mortgage brokerage work only needs a Commercial License; a company that engages in real estate or mortgage consultancy or real estate valuation also needs a Professional License. You can do a quick search for license requirements here.

Step 4: Select an acceptable location for your real estate business in Dubai. You will have more flexibility with a Limited Liability Company or a Partnership or Joint Venture, while a Sole Proprietorship must be located in one of Dubai’s free-trade zones for you to have 100 percent ownership.

Step 5: Acquire an establishment labour card and an establishment immigration card to hire any employees for your business. You can get these cards from the Ministry of Labour and the Directorate of Residency. Register all employees with the Ministry of Labour. Follow all local laws for the required percentage of UAE nationals that your business must have.

Tips and Warnings:

The amount of company ownership might depend on the investors you have in your company and whether or not your investors are UAE nationals. If you are developing a company with investors from outside the UAE, a Sole Proprietorship might be the best option. If you are developing a company with UAE investment money, however, consider the 51/49 split to maintain local investment – and therefore interest – in the business.