Advance Your Business: Mainland Access for Free Zone Companies in Dubai

 Dubai has once again solidified its position as a global business powerhouse by introducing a landmark resolution that significantly expands the operational
capabilities of free zone companies. Executive Council Resolution No. (11) of 2025, issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, has effectively bridged the gap between free zone and mainland operations, ushering in a new era of business flexibility and growth. This development is poised to reshape the business landscape of Dubai, offering unprecedented opportunities for companies operating within its numerous free zones.

Understanding the Previous Landscape:

Historically, free zone companies in Dubai operated under a distinct set of regulations, enjoying benefits like 100% foreign ownership and tax exemptions. However, they were largely restricted to conducting business within their designated free zone boundaries. Mainland operations required a separate entity and licensing, often leading to complexities and increased operational costs.

The Revolutionary Resolution: What It Entails:

The new resolution dismantles these barriers, allowing free zone companies to:

• Operate Directly on Mainland Dubai: By obtaining the necessary licenses and permits from the Dubai Department of Economy and Tourism (DET), free zone entities can now extend their commercial activities to the mainland.
• Establish Mainland Branches: The DET is authorized to issue licenses for free zone companies to establish branches on the mainland, providing a structured pathway for expansion. These licenses are subject to annual renewal.
• Maintain Separate Financial Records: To ensure transparency and compliance, companies operating on the mainland are required to maintain distinct financial records for their mainland operations.
• Comply with Federal and Local Regulations: Companies must adhere to all relevant federal and local laws and regulations, ensuring a level playing field for all businesses in Dubai.
• Allowed Economic Activities: The DET will, within 6 months of the resolution, issue a list of economic activities that are allowed on the mainland for free zone companies. This list will provide a clear framework for businesses to plan their expansion.
• Compliance time: Businesses that were operating outside of freezones when the resolution began have a one year period to comply with the new rules, with the possibility of an extra year extension.

The Impact and Benefits:

This resolution is expected to have a profound impact on Dubai's business environment:

• Enhanced Business Flexibility: Companies can now seamlessly integrate their free zone and mainland operations, streamlining processes and reducing operational complexities.
• Increased Market Access: Free zone companies gain access to a wider customer base on the mainland, fostering growth and expansion.
• Boost to Dubai's Economy: This move aligns with the Dubai Economic Agenda, D33, aiming to drive economic growth and attract further investment.
• Enhanced Competitiveness: Dubai strengthens its position as a leading global business hub by offering a more attractive and flexible business environment.
• Attraction of Foreign Investment: Simplifying mainland operations for free zone companies is likely to attract more foreign investment into Dubai.

Who Benefits Most?

This resolution benefits a wide range of businesses, including:

• E-commerce companies seeking to expand their reach to mainland customers.
• Service providers looking to establish a physical presence on the mainland.
• Trading companies aiming to distribute goods across Dubai.
• Consulting firms seeking to provide on-site services to mainland clients.

What Businesses Need to Do:

To capitalize on this opportunity, free zone companies should:

• Contact the Dubai Department of Economy and Tourism (DET) to understand the licensing requirements.
• Ensure compliance with all relevant federal and local regulations.
• Establish separate financial records for mainland operations.
• Monitor the DET's announcement of allowed economic activities.

Conclusion:

Dubai's new resolution marks a significant step forward in creating a more integrated and business-friendly environment. By bridging the gap between free zone and mainland operations, Dubai is paving the way for unprecedented growth and innovation. This move is a testament to Dubai's commitment to fostering a dynamic and competitive business landscape, solidifying its position as a global hub for commerce and investment. Don't miss out on the opportunity to leverage this change for your business. Contact the Dubai Department of Economy and Tourism (DET) directly or connect with business setup specialists to begin planning your expansion into mainland Dubai. Stay tuned for updates on the list of allowed economic activities—we'll be updating this article as soon as the DET releases it. This is a crucial update for #DubaiBusiness, #DubaiFreeZone, and those seeking #MainlandDubai opportunities. #InvestInDubai #DubaiD33

UAE End-of-Service Benefits: Gratuity & Investment Options

 Understanding UAE gratuity calculations involves navigating key aspects of the UAE Labour Law, particularly Federal Decree-Law No. 33 of 2021, and subsequent ministerial resolutions. Here's a breakdown of the essential points:

Key Points:

• Basis of Calculation:
• Gratuity is calculated based on the employee's basic salary, excluding allowances like housing, transportation, or other benefits.
• Eligibility:
• Generally, an employee must complete at least one year of continuous service to be eligible for gratuity.
• Service Duration and Calculation:
• The calculation varies based on the length of service. Key considerations include:
• For service between 1 and 5 years: 21 days' basic salary for each year of service.
• For service exceeding 5 years: 30 days' basic salary for each additional year of service beyond the initial five.
• There is a maximum gratuity amount, that cannot exceed two years worth of the employees basic salary.

• Calculation Formula:

  • For service of 1 to 5 years: Gratuity = (Basic Salary × 21 days × Years of Service) ÷ 30
  • For service exceeding 5 years: Gratuity = (Basic Salary × 30 days × Years of Service) ÷ 30
• Contract Types:
• While distinctions between limited and unlimited contracts existed, the new labour law has streamlined contracts, but the manner in which resignations affect the calculation can still vary.
• Resignation vs. Termination:
• How the employment relationship ends (resignation or termination) can affect the gratuity amount, particularly in cases of resignation with shorter service periods.
• The Savings Scheme:
• It is important to note that there is now an alternative end-of-service benefits system, called the savings scheme. This is an optional alternative. Where employers can subscribe to investment funds for their employee's end-of-service benefits. This is a new development within the UAE labor law.
• Relevant Legislation:
• Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Labour Relations.
• Cabinet Resolution No. 96 of 2023 Regarding an Alternative End of Service Benefits System.
• Cabinet Resolution No. 1 of 2022 on the Implementation of the Regulation of Federal Decree-Law No. 33 of 2021 Regarding the Regulation of Labour Relations.  

Important Considerations:

• It's crucial to refer to the latest official sources for the most accurate and up-to-date information, as labor laws can be subject to change.
• Consulting with legal professionals or HR experts in the UAE is recommended for specific cases or complex calculations.

I hope this information is helpful.

new gratuvity payment system in dubai

It's important to understand that while the core principles of UAE gratuity remain, there's a significant development with the introduction of an alternative end-of-service benefits system, often referred to as the "savings scheme." Here's a breakdown:

Traditional Gratuity:

• This system, based on the UAE Labour Law, calculates gratuity based on an employee's basic salary and years of service.
• It involves lump-sum payments upon the end of an employee's service.
• This system is still in place.

The New Savings Scheme:

• This is an alternative end-of-service benefits system. It's not a complete replacement of the traditional gratuity, but an optional alternative.
• It involves employers contributing to investment funds on behalf of their employees.
• The employee's end-of-service benefits then depend on the performance of these investments.
• Key aspects of this scheme include:
• Employers make monthly contributions to investment funds.
• Employees can also make voluntary contributions.
• The final payout to the employee includes the employer's contributions and any investment returns.
• This is regulated by Cabinet Resolution No. 96 of 2023.
• This system is designed to provide greater financial security for employees.

Key Considerations:

• The savings scheme is an optional alternative for employers.
• The traditional gratuity system remains in place.
• It is important to understand the details of each system to make informed decisions.
• It is always best to refer to the official sources from the UAE government, such as the Ministry of Human Resources and Emiratisation (MoHRE), for the most accurate and up-to-date information.

In essence, Dubai, and the wider UAE, have introduced a new, investment-based option for end-of-service benefits, giving employers and employees more flexibility.

#UAELabourLaw #UAEGratuity #EndofServiceBenefits #UAEEOSB #UAESavingsScheme #GratuityCalculation #MoHRE #EmploymentRightsUAE #FederalDecreeLaw33 #UAESavingsPlan #EmployeeInvestmentUAE #CabinetResolution96 #AlternativeEOSB #UAEJobs #WorkingInUAE #DubaiJobs #UAEBusiness #UAELegal #UAERules #Dubai #UAE #UAEGuide #ExpatUAE #LearnUAE #UAEFinance" 

Stay Ahead with 2025's Crucial Updates on UAE Employment Laws

 

You are fired

This document outlines the provisions related to termination without notice and suspension under the prevailing United Arab Emirates (UAE) Federal Decree-Law No. 33 of 2021 on the Regulation of Labour Relations (“New Labour Law”), effective February 2, 2022, as amended by subsequent legislation, including the 2025 amendments. This law governs employment relations in all private sector establishments within the UAE, excluding those operating within the Dubai International Financial Centre and Abu Dhabi Global Market. This revision incorporates significant changes designed to align UAE employment legislation with recognised global standards and evolving market practices. #UAELabourLaw #EmploymentLaw #UAEJobs #HRUAE #LegalUAE

Termination Without Prior Notice (Article 44)

Article 44 of the New Labour Law, as amended, delineates the circumstances under which an employer may terminate an employee's employment summarily, without providing prior notice. The following constitute grounds for such termination:

1.    False Identity/Forgery: If the employee assumes a false identity or submits forged certificates or documents. #Fraud #Forgery

2.    Material Loss/Damage: If the employee commits an error resulting in material losses to the employer or deliberately causes damage to the employer's property, provided the employee admits to the error and the employer notifies the Ministry of Human Resources and Emiratisation (“MOHRE”) within seven (7) working days of becoming aware of the incident. #MOHRE #Damage

3.    Violation of Rules/Safety: If the employee violates the establishment's rules and regulations concerning work or safety measures, despite having knowledge of such rules. #WorkplaceSafety #Compliance

4.    Failure to Perform Duties: If the employee fails to fulfill their contractual duties and does not rectify such failure after receiving two (2) written warning letters and being subject to a written investigation. #EmploymentContract #WarningLetter

5.    Disclosure of Confidential Information: If the employee discloses confidential information related to industrial or intellectual property, resulting in material loss or loss of opportunity to the employer, or personal gain to the employee. #Confidentiality #IntellectualProperty

6.    Public Morals/Substance Abuse: If the employee commits an act against public morals at the workplace or is found to be under the influence of narcotics or in a state of intoxication. #WorkplaceEthics #SubstanceAbuse

7.    Assault: If the employee commits a verbal, physical, or other form of assault punishable by law against the employer, manager, supervisor, or co-worker. #WorkplaceViolence #Assault

8.    Unauthorized Absence: If the employee is absent from work without justification for more than twenty (20) non-consecutive days in a year, or more than seven (7) consecutive days. #Absence #Attendance

9.    Abuse of Position: If the employee abuses their position to obtain personal gains or profits. (2025 Amendment) #Ethics #AbuseOfPower

10.                  Unauthorized Employment: If the employee joins another establishment without adhering to the applicable legal procedures. (2025 Amendment) #LabourPermit #WorkPermit

Comparative Analysis and Key Changes

Procedural Requirements: The New Labour Law provides enhanced procedural clarity regarding summary dismissal. In cases of failure to perform duties, employers must conduct a written investigation and issue two (2) warning letters, a requirement absent in Federal Law No. 8 of 1980. #LegalUpdate #LabourReform Probationary Period: The New Labour Law addresses termination during the probationary period separately under Article 9, thus removing it from the grounds for immediate dismissal under Article 44. #ProbationPeriod End-of-Service Gratuity: A significant departure from Federal Law No. 8 of 1980 is that employees summarily dismissed under Article 44 remain entitled to their end-of-service gratuity. This overturns previous judicial interpretations that allowed forfeiture of gratuity in cases of summary dismissal for breach of contractual duties. #Gratuity #EndOfService Confidential Information: The New Labour Law specifies that the disclosure of confidential information must result in material loss, loss of opportunity, or personal gain to warrant summary dismissal. This provides greater clarity compared to the broader provisions of Federal Law No. 8 of 1980. #LegalClarity Notification Timeline: The notification period for material loss incidents to MOHRE has been extended from 48 hours to seven (7) working days. #Notification 2025 Additions: Articles 44 (9) and (10) add specific legal grounds for dismissal without notice. #Amendment

Suspension (Article 40)

While this document primarily addresses termination, it is pertinent to note that Article 40 of the New Labour Law governs the temporary suspension of employees. This article should be consulted for the specific conditions and procedures related to employee suspension. #EmployeeSuspension

Disclaimer:

This document provides a general overview and should not be construed as legal advice. Employers and employees are advised to seek professional legal counsel to ensure compliance with the New Labour Law and any subsequent amendments. #LegalAdvice #ComplianceUAE

DIFC Courts Jurisdiction: New Dubai Law Streamlines Operations & Dispute Resolution

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai

 Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai has enacted Law No. (2) of 2025, a significant legislative development aimed at strengthening the Dubai International Financial Centre (DIFC) Courts. This new law comprehensively regulates the judicial and administrative structure of the DIFC Courts, redefining their jurisdictions and operational procedures.  

Enhanced Independence and Structure:

The law reaffirms the independent status of the DIFC Courts, encompassing the Court of Appeal, the Courts of First Instance, and the Small Claims Court.

These courts are mandated to exercise their duties and jurisdictions autonomously, adhering to the provisions of Law No. (2) of 2025, the broader DIFC legal framework, and the courts' established rules.  

Appointment and Authority:

A key aspect of the new law is the detailed specification of mechanisms for appointing the President and Director of the DIFC Courts. This includes outlining their respective jurisdictions and responsibilities and ensuring a clear and efficient leadership structure.

Introducing a Mediation Services Centre for Amicable Dispute Resolution:

Recognizing the importance of alternative dispute resolution, Law No. (2) of 2025 mandates the establishment of a dedicated Mediation Services Centre within the DIFC Courts. This center will provide a platform for parties to engage in mediated negotiations, facilitated by registered mediators, to achieve amicable settlements. The Centre’s President will determine its operating system, jurisdiction, and procedural guidelines. This addition underscores the DIFC Courts’ commitment to offering diverse and effective dispute resolution options.  

Exclusive Jurisdiction Clarified:

The new law explicitly defines the DIFC Courts’ exclusive jurisdiction, granting them the authority to hear and adjudicate civil, commercial, and labor claims and lawsuits involving the Centre’s bodies or institutions. This ensures a specialized and efficient handling of disputes within the DIFC ecosystem.  

Comprehensive Procedural Framework:

Law No. (2) of 2025 provides a detailed framework covering various aspects of litigation, including:

• Powers of the DIFC Courts: Clearly outlining the scope of judicial authority.
• Litigation Procedures: Standardizing processes for filing and conducting lawsuits.
• Evidence: Defining rules for the admissibility and presentation of evidence.
• Urgent Matters: Establishing procedures for expedited handling of time-sensitive cases.
• Enforcement: Streamlining the process of enforcing court judgments.
• Exemption from Pledge for Compensation: Addressing financial aspects related to litigation.
• Technical Defects and Procedural Errors: Defining how such issues are handled.
• Statute of Limitations: Setting time limits for legal actions.

Repeal of Previous Legislation:

This new law supersedes Centre Law No. (10) of 2004 and Law No. (12) of 2004, which previously governed the DIFC Courts. Any conflicting provisions in other existing legislation are also repealed, ensuring a unified and updated legal framework.  

Impact and Significance:

Law No. (2) of 2025 represents a significant step in enhancing the efficiency, independence, and effectiveness of the DIFC Courts. By providing a comprehensive and modern legal framework, Dubai aims to solidify the DIFC’s position as a leading international financial center with a robust and reliable judicial system.

Expat Leaving UAE? Avoid These Mistakes: Credit Cards, Visas, & Tenancy Termination

 Question: I'm retiring from Dubai. What do I need to do about visas, credit cards, and my apartment before I leave?

Expat Leaving UAE? Avoid These Mistakes

Answer: When leaving the UAE permanently, you must address several key aspects to ensure a smooth transition while complying with the applicable laws and regulations.

1. Closing Bank Accounts: As stipulated in Article 9(b) of the UAE Central Bank Regulation No. 29/2011 (dated February 23, 2011) concerning Bank Loans & Other Services Offered to Individual Customers, a customer may request the closure of their bank account and the termination of their relationship with the bank. The law mandates that banks must process account closures without imposing penalties if the account has been open for more than one year. Furthermore, banks are required to issue a certificate confirming the account closure within a maximum of seven days from the date of request submission.
2. Visa Cancellation: If you are sponsoring your family members, Federal Law No. 6 of 1973 on the Entry and Residence of Foreigners mandates that you must first cancel their visas before proceeding to cancel your own. This can be done by visiting an Amer Service Centre or completing the process online, submitting the required documents, and paying the applicable fees.
3. Tenancy Agreements: Dubai Land Law does not explicitly address early termination of rental contracts. However, it is advisable to notify your landlord in writing at least 90 days prior to the contract's expiration if you intend to vacate. This is in accordance with Article 14 of Law No. 33 of 2008 Amending Law No. 26 of 2007, which requires either party to notify the other at least 90 days in advance if they wish to amend or terminate a rental agreement. If you need to terminate your tenancy early, you should attempt to reach a mutual agreement with your landlord. In case of disputes, you may approach the Real Estate Regulatory Authority (RERA) for resolution.
4. Clearing Credit Card Dues: It is crucial to clear all outstanding credit card balances prior to your departure. Failure to comply could result in the lender initiating legal proceedings. Under Articles 324 and 325 of the Federal Decree-Law No. 42 of 2022 on Civil Procedures Law, if the outstanding amount exceeds AED 10,000, the lender may request the court to impose a travel ban or initiate further legal actions, such as payment order cases or civil suits, to recover the debt. A final judgment against you could lead to execution proceedings, including potential travel bans or arrest warrants.

Conclusion: Before retiring and leaving the UAE, ensure that you:

• Close all bank accounts and secure a closure certificate.
• Cancel all family visas and your own visa.
• Notify your landlord of your intention to vacate and manage the tenancy agreement appropriately.
• Settle all outstanding credit card dues to avoid legal complications.

Consulting the relevant authorities or legal professionals for further guidance is highly recommended to avoid any regulatory or legal issues.

I hope this revised version is clear and comprehensive! Let me know if you'd like further refinements.