What is the Best Location for Setting Up a Business in Dubai?

Choosing a business location in Dubai is more than picking an office; it affects your business strategy and growth.  

• Impact on Licensing, Ownership, and Operations: Your chosen location directly determines the type of company license you need and the business activities you can conduct. It also dictates your ownership structure. 

For example, while mainland companies now allow 100% foreign ownership in most sectors, free zones have always offered this benefit. Conversely, a free zone company is restricted from directly trading with the mainland market without specific approvals or a local agent.

• Update in 2025: Executive Council Resolution No. 11 of 2025 now allows many free zone companies to operate on the mainland. They can do so by obtaining a branch license or securing the necessary permits from the Dubai Department of Economy & Tourism (DET).
• Accessibility, Visibility, and Client Reach: The physical location impacts how easily clients can find and access your business. A retail business needs a visible location with high foot traffic, while a service-based company might prioritize proximity to its key corporate clients. A central location like Business Bay, Dubai, can provide a prestigious address and excellent connectivity.
• Regulatory and Cost Implications: Regulatory frameworks and costs vary significantly between locations. Free zones often have their own governing bodies and rules, and their license fees, visa packages, and office rental costs can differ from mainland rates. Understanding these variations is crucial for financial planning. 

Learn more about how licensing costs differ in Dubai in this detailed Dubai license cost blog.

• Corporate Tax / VAT: UAE corporate tax of 9% applies on profits above AED 375,000. Free zone companies may receive tax exemptions on qualifying income. Additionally, VAT at 5% applies to relevant goods and services, leading to mandatory VAT registration.

A mainland business in Dubai operates under the authority of the Dubai Department of Economy and Tourism (DET). This structure gives you the freedom to trade throughout the UAE and conduct business with government entities.

1. Business Bay

Business Bay, Dubai, stands as the city’s modern central business hub, attracting large corporations and professional service firms.

• Central Hub: It is a core district for consultancies, financial services, and corporate headquarters.
• Strategic Proximity: Its location is highly convenient, offering proximity to the Dubai International Financial Centre (DIFC) and Downtown Dubai. The area’s modern infrastructure and vibrant professional environment make it a prime choice for businesses seeking a prestigious address.

2. Sheikh Zayed Road

As Dubai’s main commercial artery, Sheikh Zayed Road is synonymous with prestige and high visibility.

• High Visibility: Lined with iconic skyscrapers, it is the top choice for financial, legal, and multinational corporations looking for a prominent location.
• Excellent Connectivity: The location provides direct access to the Dubai Metro. It also connects to key areas across the city, making it ideal for companies needing easy access for employees and clients.

3. Deira & Bur Dubai

These historic districts represent Dubai’s traditional trading heart.

• Historic Trading Zones: Deira and Bur Dubai are well-known for their bustling souks and retail markets. They are perfect for retail, hospitality, and Small to Medium-sized Enterprises (SMEs) that depend on local foot traffic.
• Affordable Options: Compared to the newer districts, these areas often offer more affordable office and retail spaces, making them suitable for businesses starting with a smaller budget.

4. Al Quoz

Al Quoz is a unique mix of industrial operations and a thriving creative scene.

• Industrial and Creative Blend: The area offers vast spaces for warehousing, manufacturing, and industrial activities.
• Artistic Hub: It has also become a recognized center for art galleries and creative businesses, making it a versatile location for a wide range of activities.

Setting up a mainland company in areas like Al Quoz allows you to benefit from full access to the UAE market and government contracts. Learn more about the benefits of mainland company formation in Dubai.

Dubai’s free zones are designed to attract specific industries by offering specialized infrastructure and a 100% foreign ownership model. As of October 2025, Dubai hosts over 25 free zones, each catering to distinct sectors and offering tailored services to investors.

Collectively, these zones account for approximately 53% of the UAE’s free zone licenses, totaling over 112,000 active licenses in Dubai alone.

1. Dubai Multi Commodities Centre (DMCC)

DMCC Free Zone, located in Jumeirah Lakes Towers (JLT), has consistently been named the “Global Free Zone of the Year.”

• Industry Focus: It is the best choice for businesses in commodities trading, logistics, and fintech. DMCC has built an award-winning infrastructure and a robust ecosystem for these sectors.
• Business Ecosystem: DMCC provides access to over 25,000 member companies, offering unparalleled networking opportunities and business support services.

2. Jebel Ali Free Zone (JAFZA)

JAFZA is the UAE’s oldest and largest free zone, serving as a global logistics and manufacturing hub.

• Logistics Powerhouse: Its strategic location next to Jebel Ali Port, the largest man-made port in the world, and Al Maktoum International Airport makes it the ideal location for import, export, and manufacturing businesses.
• Global Connectivity: JAFZA provides world-class infrastructure that supports global trade and supply chains. Companies can access regional & international markets, and the JAFZA activity list details the approved activities for operating in the free zone.

3. Dubai Internet City / Media City

These free zones are the epicenters for their respective industries.

• Sector-Specific Support: Dubai Media City and Dubai Internet City offer a purpose-built infrastructure and a community of like-minded professionals in tech and media.
• Ideal for Tech and Media: They are the top choice for tech companies, digital media agencies, and startups seeking a dynamic, innovation-focused environment.

An offshore company set up in Dubai is primarily for international business and asset protection. They cannot operate within the UAE, and in certain cases, they must comply with Economic Substance Regulations (ESR) and UAE Anti-Money Laundering (AML) laws.

• Benefits: Offshore companies allow 100% foreign ownership, impose no corporate tax, and provide high privacy. They do not permit physical offices or visas.
• Common Use Cases: Offshore entities in jurisdictions like JAFZA Offshore and RAK ICC (Ras Al Khaimah International Corporate Centre) are used for holding companies, asset protection, and managing international portfolios.

RAK International Corporate Centre (RAK ICC)

• Location: Ras Al Khaimah
• 100% foreign ownership, zero taxes, high confidentiality
• Can own property in Dubai, open local/international bank accounts
• Quick setup, no audit/accounting requirements

Jebel Ali Free Zone (JAFZA) Offshore

• UAE’s oldest offshore zone, ideal for logistics and global trade
• 100% foreign ownership, zero taxes
• Can hold shares in mainland/free zone companies
• Can own property in Dubai, fast incorporation

You can explore more advantages of setting up an offshore company in Dubai in our detailed blog.

Before you decide on the best location for setting up a business in Dubai, consider these crucial factors:

• Business Activity and Licensing: Your specific business activity is the most important factor. Some activities are limited to certain free zones, while others are best suited for the mainland.
• Target Market and Operational Scope: If your business serves the local UAE market, a mainland company gives you full access. For international trade or remote services, a free zone offers significant benefits.
• Budget and Rental Costs: Costs vary significantly. A mainland setup might involve higher office rent, while a free zone might offer cost-effective virtual or flexi-desk options.
• Visa Quotas and Employee Accommodation: Free zones have different visa policies and quotas. Some zones offer unlimited visas depending on your office size, while others have a set limit.
• Ownership and Control Flexibility: Free zones allow 100% foreign ownership, while mainland companies may require a local partner in some sectors. Choose a structure that gives you the control you need.
• Reputation of the Jurisdiction: Consider the business credibility and professional image associated with the location. Established zones like Business Bay or DMCC enhance your company’s reputation with clients and partners.

Dubai’s government constantly evolves its business environment to maintain its competitive edge.

• DET Initiatives and Economic Agenda ‘D33’: The Dubai Economic Agenda, “D33”, aims to double the city’s economy by 2033. It focuses on attracting Foreign Direct Investment (FDI) and positioning Dubai among the top three global cities. These initiatives create a more business-friendly environment with streamlined regulations and support for key sectors.
• Rise of Hybrid Zones and Digital Licensing: The lines between free zones and the mainland blur. Initiatives like the Dubai Unified License (DUL) and digital licensing simplify the setup process. They also offer greater flexibility. However, the DUL is still evolving. It has not yet established a strong footing in the market.
• Sustainability and Smart City Integration: Dubai’s Vision 2030 and Smart City initiatives are promoting sustainable and tech-driven business practices. Companies that align with these trends can benefit from government support and a progressive business ecosystem.

Ultimately, there is no single “best” location for every business in Dubai. The ideal choice depends on your specific needs, business model, and long-term goals. A retail company might thrive in Deira, while a fintech startup finds its home in DMCC Free Zone. Carefully assessing your business activity, target market, and budget will lead you to the perfect location for your business.

Setting up a business in Dubai can be complex. SafeLedger simplifies the process, guiding you through mainland, free zone, or offshore setups while handling all compliance, documentation, and approvals. Save time, reduce costs, and launch your business smoothly. Contact us today for personalized assistance from our expert team.