From Grade A trophy offices in DIFC to warehouses in Jebel Ali — a complete guide to leasing commercial property in Dubai, with rent rates, retail tiers, industrial zones, free zone vs mainland comparisons, service charge guidance, and a step-by-step leasing walkthrough.
Desk research against primary sources. Figures are traced to the issuing UAE authority and linked on the page.
Dubai Commercial Property: One of the World's Most Dynamic Markets
Dubai is home to approximately 70 million sqft of Grade A office space — a figure that continues to grow as major developments in DIFC, Downtown, and Business Bay add new supply each year. As a global business hub connecting East and West, Dubai attracts multinationals, regional headquarters, fintech unicorns, and ambitious SMEs alike, creating sustained demand across all commercial real estate categories. If you're also setting up a legal entity, see our Dubai business setup guide and our office rental guide for small-team office options before committing to a long lease.
The commercial property market spans five main segments: Grade A offices (from trophy towers to premium business parks), retail (from ultra-premium Dubai Mall units to community strip retail), industrial and warehousing (clustered around Jebel Ali Port and Dubai South), free zone offices (DMCC, DIFC, IFZA, and dozens more), and coworking and flex space (a rapidly growing segment). Each segment has distinct pricing, lease structures, and regulatory requirements.
Key commercial zones by category: Office hubs — DIFC (finance), Downtown Dubai, Business Bay, Jumeirah Lakes Towers (JLT), Dubai Internet City (tech), Dubai Media City (media/marketing), Dubai Marina. Logistics and industrial — Jebel Ali Free Zone (JAFZA), Dubai South, Al Quoz, Ras Al Khor. Retail — Dubai Mall, Mall of Emirates, City Walk, JBR The Walk, Dubai Hills Mall.
VAT applies to all commercial rent — 5% on top of listed rates
Unlike residential rent (VAT-exempt), all commercial property rent in the UAE is subject to 5% VAT. Ensure your budget includes this. If your business is VAT-registered, input VAT is recoverable on rent, making the net cost equal to the pre-VAT amount for fully taxable businesses. For VAT-exempt businesses (certain financial services, healthcare), the VAT on rent becomes an unrecoverable cost.
Dubai Office Market: Grades, Zones, and Pricing
Dubai's office market is stratified by grade, with rents varying dramatically from AED 80/sqft/year in older Grade B stock to AED 450/sqft/year for trophy space in the Burj Khalifa tower itself. Grade classification in Dubai broadly follows international standards but with local nuance.
Grade A Trophy
The pinnacle of Dubai's office market. Burj Khalifa (EMAAR; office floors in the podium), Index Tower (DIFC), Emirates Towers (SZR), and ICD Brookfield Place (DIFC — newest Grade A trophy tower, 2023) command rents from AED 250 to AED 450/sqft/year. These buildings feature LEED Platinum or Gold certification, full-floor options for large occupiers, concierge-level building management, premium lobby finishes, and — for DIFC buildings — access to the DIFC common law jurisdiction.
Grade A Premium
The core of Dubai's corporate office market. Boulevard Plaza (Downtown), JLT cluster towers (Jumeirah Lakes Towers), Business Bay high-quality stock, and major DMCC towers host the bulk of regional headquarters and mid-size corporates. Rents range AED 150–250/sqft/year. These buildings offer modern efficient floorplates, good HVAC, reliable lifts, and strong transport links including metro access (JLT and Business Bay are both metro-connected).
Grade B
Older inventory on Sheikh Zayed Road, Karama, Deira, and some early Business Bay towers. Rents AED 80–150/sqft/year. Suitable for cost-conscious SMEs and back-office functions. May require significant refurbishment contribution from tenant; HVAC and electrical may be dated. Verify chiller costs separately — older buildings often have less efficient cooling systems with higher operating costs.
Dubai Office Grades: Zone and Pricing Comparison
Grade / Type
Key Zones
Rent (AED/sqft/yr)
Features
Typical Tenant
Grade A Trophy
Burj Khalifa, Index Tower, Emirates Towers, ICD Brookfield Place
Service charges in Dubai commercial buildings add AED 15–100/sqft/year on top of rent. Grade B buildings may charge AED 15–25/sqft; Grade A premium AED 30–60/sqft; top DIFC buildings AED 60–100/sqft. Always request the current year's service charge budget before signing. Service charges are variable annually and are subject to 5% VAT. For a 3,000 sqft office at AED 40/sqft service charge, that's AED 126,000/year (including VAT) on top of rent.
Dubai Retail Real Estate: Mall, Street, and Community Leasing
Dubai is one of the world's great retail cities, with mall culture deeply embedded in the lifestyle. Dubai Mall attracts over 100 million visitors annually — making it the most visited destination on Earth. But the Dubai retail landscape ranges from ultra-premium mall units to affordable community retail, offering options across every budget and business type.
Retail rents in Dubai are typically quoted per sqft per year, and premium mall units command some of the highest retail rents in the world: Dubai Mall AED 1,500–3,500/sqft/year for prime units (front-of-store, ground floor, food court), Mall of Emirates AED 1,200–2,800/sqft/year. These rates reflect unparalleled footfall but require strong brand turnover to service. F&B operators typically pay additional licensing costs: Dubai Municipality food licence, DTCM tourism licence, and RTA outdoor seating permit where applicable.
Dubai Retail Tiers: Rent and Footfall Comparison
Retail Tier
Examples
Rent (AED/sqft/yr)
Footfall
Key Notes
Premium Mall
Dubai Mall, Mall of Emirates
AED 1,200–3,500
80–100M+ visitors/yr (Dubai Mall)
Highest brand visibility; significant fit-out requirement; long queue for units
Major Mall
Dubai Hills Mall, City Walk, Ibn Battuta, Mirdif City Centre
AED 600–1,500
15–40M visitors/yr
Strong catchment; more accessible for growing brands
Community Mall
Springs Souk, Town Centre JBR, Shoreline Shops
AED 400–1,000
Local community traffic
Lower turnover required; loyal repeat customers; easier to sustain
Street Retail (Prime)
Marina Walk, JBR The Walk, Downtown Boulevard
AED 800–2,500
High tourist and resident foot traffic
Strong for F&B and lifestyle; outdoor seating adds RTA permit requirement
Street Retail (Secondary)
Jumeirah Beach Road, Al Wasl, Satwa
AED 250–700
Mixed resident/community
Lower rents; strong for local services; good for F&B with parking
Retail TierPremium Mall
ExamplesDubai Mall, Mall of Emirates
Rent (AED/sqft/yr)AED 1,200–3,500
Footfall80–100M+ visitors/yr (Dubai Mall)
Key NotesHighest brand visibility; significant fit-out requirement; long queue for units
Retail TierMajor Mall
ExamplesDubai Hills Mall, City Walk, Ibn Battuta, Mirdif City Centre
Rent (AED/sqft/yr)AED 600–1,500
Footfall15–40M visitors/yr
Key NotesStrong catchment; more accessible for growing brands
Retail TierCommunity Mall
ExamplesSprings Souk, Town Centre JBR, Shoreline Shops
Rent (AED/sqft/yr)AED 400–1,000
FootfallLocal community traffic
Key NotesLower turnover required; loyal repeat customers; easier to sustain
Retail TierStreet Retail (Prime)
ExamplesMarina Walk, JBR The Walk, Downtown Boulevard
Rent (AED/sqft/yr)AED 800–2,500
FootfallHigh tourist and resident foot traffic
Key NotesStrong for F&B and lifestyle; outdoor seating adds RTA permit requirement
Retail TierStreet Retail (Secondary)
ExamplesJumeirah Beach Road, Al Wasl, Satwa
Rent (AED/sqft/yr)AED 250–700
FootfallMixed resident/community
Key NotesLower rents; strong for local services; good for F&B with parking
Industrial, Logistics, and Warehouse Space
Dubai's strategic location — 8 hours flying time from 2/3 of the world's population — makes it a global logistics hub. Jebel Ali Port, the 9th largest container port in the world, anchors a massive logistics and warehousing ecosystem. Dubai South (adjacent to Al Maktoum International Airport, planned to be the world's largest airport when complete) is the fastest-growing industrial zone.
Dubai Industrial and Warehouse Zones Comparison
Zone
Type
Rent (AED/sqft/yr)
Port / Logistics Access
Notes
Jebel Ali Free Zone (JAFZA)
Warehouse, logistics, manufacturing
AED 30–90
Jebel Ali Port (world's 9th largest) — direct
Customs-bonded; 100% foreign ownership; re-export without UAE customs duty
Port / Logistics AccessSheikh Zayed Road arterial; 45 min to Jebel Ali
NotesMainland licence; older stock; flexible short terms; food & cold storage available
ZoneRAK / Ajman / Sharjah
TypeBudget warehouse, storage
Rent (AED/sqft/yr)AED 15–40
Port / Logistics AccessSaqr Port (RAK); Sharjah Airport / Port
NotesLower cost for non-time-sensitive storage; longer Jebel Ali transit time
Cold storage premium
Cold chain logistics and cold storage space commands a significant premium in Dubai: AED 100–180/sqft/year versus AED 25–60/sqft for ambient warehousing. The UAE's food and pharmaceutical import dependence (approximately 85–90% of food is imported) drives strong demand for cold storage. Specialist operators including Agthia, Triton Logistics, and Cool Chain Group dominate this segment.
Commercial Lease Structures in Dubai
Understanding the full commercial lease structure is essential before signing. Dubai's commercial leases differ from European or North American norms in several important ways.
Standard lease terms
Commercial leases are typically 1–3 years. Longer leases (3–5 years) attract rent discounts of 5–15%. Short-term leases (under 1 year) are uncommon in the direct lease market and carry a premium. Coworking and serviced offices offer month-to-month flexibility.
Rent payment structure
Unlike most Western markets, Dubai commercial rent is commonly paid in advance by post-dated cheques — typically 1 (annual), 2 (semi-annual), or 4 (quarterly) cheques. A landlord may demand all rent upfront in a single cheque. This requires significant cash flow management. Bounce of a post-dated rent cheque is a criminal offence in the UAE; tenants must ensure funds are available on cheque dates.
Capital contributions and rent-free periods
In the current market, landlords typically offer 2–6 months rent-free for fit-out, particularly for new leases. This is separate from capital contribution — some landlords offer a CapEx contribution toward fit-out costs, especially for large spaces or long-term leases. Negotiate both elements; they can significantly reduce first-year occupancy cost.
Chiller and district cooling: verify before signing
In many Dubai towers, district cooling (chilled water air conditioning) is provided by a third-party operator (Empower, Palm Utilities, Tabreed) and billed separately. The service charge listed in a lease may not include chiller costs. Always ask: (1) Is chiller included in rent or service charge? (2) If separate, what is the estimated annual cost per sqft? (3) Who is the district cooling provider? Chiller charges of AED 20–60/sqft/year are common in premium towers — a cost that must be budgeted.
Sub-letting: landlord NOC mandatory
Sub-letting any part of a commercial space in Dubai requires written landlord consent (NOC). Sub-letting without NOC is a material breach of lease and grounds for termination. Both the head tenant and sub-tenant must register separately on Ejari. Free zone sub-lets require free zone authority approval in addition to landlord NOC.
Free Zone vs Mainland Office: Which Is Right for You?
The 2021 amendments to the UAE Companies Law removed mandatory local sponsorship for most mainland business activities, fundamentally changing the free zone vs mainland calculus. Here is a current comparison for companies choosing where to base their office. Use our free zone comparison tool to filter by cost, activity type, and visa quota before choosing a zone.
Free Zone Advantages
100% foreign ownership — no local sponsor required
0% customs duty on imports into the free zone
Re-export without UAE customs duty
No corporate tax on qualifying income (QFZP status possible)
Streamlined business setup — single authority for licence + visa
Established international business community in major free zones (DMCC, DIFC)
DIFC/ADGM have independent common law courts — familiar for international companies
Free Zone Limitations
Cannot trade directly with UAE mainland without customs duty and distributor arrangement
No access to UAE government contracts without mainland entity
Minimum space requirements tied to visa quotas (adds cost for small teams)
Some free zones have limited permitted activities; check before applying
Moving from free zone to mainland requires full re-registration (cost + time)
For SMEs primarily serving UAE mainland clients, the post-2021 mainland LLC option (100% foreign-owned in most sectors) now offers a compelling alternative to free zone setup at potentially lower overall cost.
Long-Term Lease vs Flex / Coworking for SMEs
Direct Long-Term Lease
Lower effective rent per sqft vs coworking at scale (15+ people)
Full control over fit-out, branding, and office environment
Stability — no risk of coworking operator closing or repricing
Better for client-facing businesses needing branded reception
Build equity in fit-out assets (usable for 5–10 year lease)
Greater confidentiality and security for sensitive businesses
Locked into 1–3 year minimum term — inflexible if business scales or contracts
Responsible for all maintenance and building management
Ejari exit requires formal notice periods (typically 90 days)
Additional costs: utilities, chiller, service charges, insurance
For teams under 15 people: often more expensive than quality coworking
Rule of thumb: 15+ seats = direct lease; under 15 = evaluate coworking
For teams of 15 or more, a direct Grade B or Grade A premium lease is typically cheaper per person than quality coworking when all costs are factored in. For teams under 15, premium coworking (Regus, IWG, WeWork, The Bureau) often comes out cheaper or comparable when factoring in: zero fit-out cost, all-inclusive utilities, flexible term, and no security deposit capital tie-up.
Step-by-Step: Leasing Commercial Space in Dubai
1
Define your space requirements and budget
Start with headcount planning: standard Dubai commercial density is 80–120 sqft per person (Grade A) to 60–80 sqft per person (Grade B / hot-desking). Add 20–30% for meeting rooms, reception, and storage. Free zones have minimum space requirements tied to visa allocations (DMCC: 200 sqft minimum per visa). Calculate gross space requirement, then multiply by anticipated rent per sqft to set your annual budget. Don't forget service charges (AED 15–100/sqft/yr) and chiller/HVAC costs which may be separate.
Time: 1–2 weeks
2
Choose between free zone and mainland
This decision is business-critical. Free zone: 100% foreign ownership, no customs duty on imports, easy business setup, limited ability to trade directly with UAE mainland. Mainland: access to all UAE government contracts, unlimited business activities, requires local sponsor structure (now waived for many sectors post-2021 Companies Law changes). Weigh tax treatment, trade activity, and licensing restrictions carefully. See the ProsCons comparison on this page for a full breakdown.
Time: Decision before search
3
Shortlist zones and engage a commercial broker
Dubai's commercial real estate brokers include Knight Frank, JLL, CBRE, Savills, Colliers, Land Sterling, and Asteco. For mid-market searches, specialist commercial brokers often have better availability than large international firms. Brokers must hold a RERA commercial brokerage licence. Typical brokerage fee is 2–5% of annual rent — sometimes shared between landlord and tenant; sometimes all-tenant. Clarify fee structure before engaging. A good broker will shortlist based on your actual floorplate needs, not just price.
Cost: 2–5% of annual rent (brokerage)Time: 1–2 weeks
4
View shortlisted properties and negotiate heads of terms
Visit 5–10 properties minimum before shortlisting. Key checks: actual net lettable area vs marketed sqft (some buildings market gross internal area which inflates apparent size); chiller inclusive or separate; parking ratio (1 per 1,000 sqft is standard Grade A; less in older buildings); service charge amount; building LEED certification status; landlord's fit-out contribution / rent-free period (typically 2–6 months in current market); and lease break clauses. Negotiate rent-free fit-out periods — particularly in challenging vacancy markets landlords offer 2–4 months standard.
Time: 2–4 weeks
5
Conduct technical and legal due diligence
Engage an independent technical consultant (AED 3,000–10,000) to assess: building systems condition, chiller and HVAC capacity, electrical and data capacity, and structural suitability for your fit-out. Engage a UAE commercial property solicitor (AED 5,000–15,000) to review the lease — pay particular attention to: break clauses, assignment and sub-letting rights, service charge capping, and reinstatement obligations. Reinstatement obligations can be significant — some leases require stripping out all fit-out at lease end.
Cost: AED 8,000–25,000 combinedTime: 1–2 weeks
6
Execute lease, register Ejari, and pay deposits
Once heads of terms are agreed, the landlord's legal team issues the lease agreement. Sign and pay: security deposit (typically 1–3 months' rent), agency commission, and first rent cheque(s). UAE commercial leases are commonly paid by post-dated cheques (1–4 cheques per year). Ejari registration is mandatory for all Dubai commercial leases — register via the Real Estate Regulatory Agency (RERA) portal. Ejari protects your tenancy rights and is required for utility connections and business licence renewal.
Most commercial spaces are delivered in CAT A condition (raised floors, suspended ceilings, HVAC, fire suppression, lighting — no partition walls). CAT B is the tenant fit-out: partitions, kitchen, meeting rooms, branding. Typical CAT B fit-out costs AED 150–350/sqft for Grade A standard. You'll need landlord NOC before commencing fit-out works, plus Dubai Municipality building permit for structural changes. Fit-out contractors must be DM-approved. Budget for 8–16 weeks fit-out time for a 5,000+ sqft space.
Cost: AED 150–350/sqft CAT B fit-outTime: 8–16 weeks
8
Obtain occupancy permits, connect utilities, and move in
Before opening: obtain Dubai Municipality occupancy certificate; connect DEWA (electricity/water); register for district cooling if applicable; set up internet (du, Etisalat/e&); register fire suppression and alarm systems with Dubai Civil Defence; and obtain any sector-specific licences (F&B requires DM food safety inspection and DED trade licence; health clinics require DHA licence). Typical timeline from lease execution to occupation: 3–6 months for fitted spaces; 6–12 months for large fit-outs.
The table below models a first-year occupancy cost for a 5,000 sqft Grade A office in Business Bay at AED 180/sqft. This is a realistic mid-range Grade A estimate for Q1 2026.
First-Year Leasing Cost: 5,000 sqft Grade A Office, Business Bay (2026)
Item
Price
Rent
Annual rent (5,000 sqft at AED 180/sqft)
Mid-range Grade A Business Bay; typically 2–4 post-dated cheques
Varies widely; some buildings include in service charge; verify before signing
AED 30,000–80,000
Deposit
Security deposit (3 months)
Returned at lease end subject to reinstatement; held in escrow or by landlord
AED 225,000
Registration
Ejari registration
Mandatory Dubai commercial lease registration
AED 220
Transaction
Brokerage commission (5% of annual rent)
Negotiable; sometimes split landlord/tenant; confirm before engaging broker
AED 45,000
Fit-Out
CAT B fit-out (5,000 sqft at AED 200/sqft)
One-off capital cost; AED 150–350/sqft range depending on spec
AED 1,000,000
IT / telecoms setup
Structured cabling, server room, internet lines (du/Etisalat)
AED 15,000–50,000
Permits
DM permits and NOC fees
Building permit, fit-out NOC, occupancy certificate — depends on complexity
AED 10,000–30,000
Tax
VAT on rent (5%)
VAT applies to all commercial rent in UAE; input VAT recoverable if VAT registered
AED 45,000/yr
Total
Total first-year cost estimate: AED 2.3M–2.5M (inclusive of fit-out, deposits, fees)
Ongoing annual cost (from year 2)
From year 2, the recurring annual occupancy cost is significantly lower — typically AED 1,000,000–1,100,000/year for the same 5,000 sqft (rent + service charge + chiller + VAT, net of any input VAT recovery). Fit-out, deposit, and brokerage are first-year only.
Major Landlords, Developers, and Advisers
Major Commercial Landlords / Developers
Emaar Properties — Dubai Mall, Downtown Dubai, Business Bay (multiple towers). DAMAC Properties — Business Bay and DIFC-adjacent stock. Aldar Properties (Abu Dhabi-based) — increasingly active in Dubai. Brookfield / ICD Brookfield — ICD Brookfield Place (DIFC's newest Grade A tower). DMCC Authority — manages over 100 towers in Jumeirah Lakes Towers. JAFZA / DP World — Jebel Ali logistics and industrial.
Commercial Real Estate Consultancies
International majors with Dubai offices: Knight Frank, JLL, CBRE, Savills, Colliers International. Strong regional firms: Land Sterling, Asteco, Cavendish Maxwell. All provide occupier advisory, leasing, and investment services. For industrial and logistics specifically, CBRE and JLL have dedicated teams.
Frequently Asked Questions
Frequently Asked Questions
Dubai office rents span a wide range depending on grade and location. Grade A Trophy offices (Burj Khalifa, Index Tower, Emirates Towers) command AED 250–450/sqft/year. Grade A Premium (Boulevard Plaza, JLT, Business Bay quality towers) run AED 150–250/sqft/year. Grade B offices on older Sheikh Zayed Road and Karama range from AED 80–150/sqft/year. Free zone offices (DMCC, IFZA) typically range AED 100–200/sqft/year. Coworking and flex space is priced per desk or per private office room rather than per sqft.
Yes. Since the UAE introduced VAT in January 2018, commercial property rent is subject to 5% VAT. The landlord must be VAT-registered and issue a tax invoice showing VAT separately. If your business is VAT-registered, you can recover the input VAT on rent as a business expense, making the effective net cost zero if you are a fully taxable business. Residential rent is exempt from VAT; only commercial property is subject to 5% VAT.
Ejari (Arabic for 'my rent') is Dubai's official tenancy registration system managed by RERA (Real Estate Regulatory Agency). Ejari registration is mandatory for all commercial leases in Dubai. It creates an official record of your tenancy, protects your rights as a tenant, and is required for: DEWA utility connections, business licence renewals, employee visa applications, and any RERA dispute resolution. The registration fee is AED 220. Without Ejari, you cannot legally operate from the premises in Dubai.
In the current Dubai commercial market, rent-free fit-out periods of 2–4 months are common for standard commercial leases. For larger spaces (5,000+ sqft) or long-term leases (3+ years), tenants can negotiate 4–6 months rent-free. This period allows you to complete CAT B fit-out works before paying rent. The rent-free period is separate from the security deposit, which is still paid upfront. In prime locations with high demand (DIFC Grade A), rent-free concessions are shorter or absent.
Service charges cover building management costs: common area maintenance, lifts, lobby staffing, building security, waste management, and shared HVAC systems. In Dubai commercial buildings, service charges range from AED 15–25/sqft/year in Grade B buildings to AED 40–100/sqft/year in premium Grade A buildings. Service charges are charged separately from rent and are subject to 5% VAT. Critically, service charges are variable — the landlord can increase them annually. Negotiate a service charge cap in your lease, or at minimum request the last 3 years of service charge history before signing.
DIFC (Dubai International Financial Centre) is a financial free zone with its own common law legal system and courts (based on English law). It is the preferred location for banks, financial institutions, fund managers, and international professional services. DIFC has its own regulatory authority (DFSA) and company law (DIFC Companies Law). Downtown Dubai is a general freehold area governed by Dubai law. Office rents in DIFC are among the highest in Dubai (AED 250–450/sqft for premium space). Downtown offices outside the DIFC perimeter are typically AED 180–300/sqft for similar quality.
A free zone company can lease mainland office space for administrative purposes, but it cannot conduct commercial trading activities from a mainland address without a mainland trade licence. In practice, many free zone companies take a small mainland address for convenience, but this is a grey area — the business activities conducted must be appropriate to the licence. If you need to regularly meet UAE government clients or conduct mainland trading, obtain a dual-licence (some free zones offer this) or set up a separate mainland entity.
Dubai's technology and startup ecosystem is concentrated in several key areas. Dubai Internet City (DIC) and Dubai Silicon Oasis (DSO) were the original tech zones and still host major multinationals (Microsoft, Google, LinkedIn, SAP are all in DIC/DMCC area). For startups: DIFC FinTech Hive, Dubai Future Foundation (D3 campus), and numerous coworking spaces in Business Bay, JLT, and Downtown are popular. DMCC (Jumeirah Lakes Towers) has a strong startup community with affordable flexible spaces. In5 Innovation Centre (Dubai Internet City) provides subsidised incubator space for early-stage startups.
Warehouse rental in Dubai ranges from AED 15–90/sqft/year depending on location and specification. Jebel Ali Free Zone (JAFZA) commands AED 30–90/sqft for logistics-spec warehouses with direct port access. Dubai South/DSO Logistics ranges AED 35–75/sqft. Al Quoz mainland warehouses run AED 25–60/sqft. Cold storage facilities command a significant premium: AED 100–180/sqft. Beyond rent: security deposit (3 months), Ejari registration, DEWA connection, racking/shelving installation, and free zone licence fee (for JAFZA/Dubai South). Total first-year fit-out cost for a basic 10,000 sqft warehouse: AED 300,000–600,000 inclusive of licence and setup.
Jebel Ali Free Zone Authority (JAFZA) is one of the world's largest free zones, located adjacent to Jebel Ali Port — the 9th largest container port globally. JAFZA hosts over 9,000 companies from 140+ countries. Companies choose JAFZA for: direct access to the port with customs-bonded warehousing (goods stored without paying UAE customs duty until released to mainland); 100% foreign ownership; 0% import/export duty; re-export without UAE customs; no corporate or personal income tax; full capital and profit repatriation. Manufacturing, logistics, commodity trading, and distribution companies are the primary tenants. Minimum office/warehouse requirements apply and vary by licence type.
Sub-letting of commercial space in Dubai requires the written consent of the landlord (a formal NOC — No Objection Certificate). Without landlord NOC, sub-letting is a breach of the lease agreement. Once NOC is obtained: the sub-lease must also be registered in Ejari; the sub-tenant needs their own Ejari registration for business licence and utility purposes; the head tenant remains liable to the landlord under the main lease. Sub-letting in free zones has additional restrictions — the free zone authority must approve any sub-let and the sub-tenant typically needs their own free zone licence.
Free zone office rents vary significantly. DMCC (JLT towers) is generally AED 100–180/sqft — competitive with Grade B mainland. DIFC is AED 250–450/sqft — premium even by Grade A mainland standards. IFZA (Dubai Silicon Oasis) offers very affordable flexi-desk and co-working from AED 15,000/yr including licence. Pure cost comparison: for small teams requiring only virtual or flexi-desk, free zones are often cheaper inclusive of licence. For 5,000+ sqft of private office, Grade B mainland may be 20–30% cheaper than equivalent free zone space. The cost of the free zone annual licence fee (AED 15,000–50,000/yr depending on zone) must be added to any comparison.
Opening an F&B business in Dubai requires multiple licences: (1) DED trade licence (food and beverage category) or free zone equivalent; (2) Dubai Municipality food safety licence — requires approved kitchen design, DM inspection, and food handler certificates for all staff; (3) DTCM (Department of Tourism) tourism licence (required for most restaurant-category businesses); (4) Civil Defence NOC for fire suppression and safety; (5) If outdoor seating: RTA NOC for pavement use; (6) Alcohol licence (if serving alcohol): Dubai Tourism Alcohol Licence — requires specific hotel or licensed venue classification. Total licensing cost for a new restaurant: AED 30,000–80,000 before opening. Allow 3–6 months for full approvals.
Dubai's commercial real estate market is served by major international consultancies and strong local firms. International majors: Knight Frank, JLL, CBRE, Savills, Colliers — all have Dubai offices covering office leasing, investment, and industrial. Strong regional/local firms: Land Sterling, Asteco, Cavendish Maxwell, Allsopp & Allsopp Commercial, GCP Properties. For specific sectors: Logistics/industrial — CBRE has a dedicated industrial team; Free zone offices — each free zone has its own leasing team in addition to external brokers. Brokerage fee: typically 2–5% of first year's rent, sometimes split between landlord and tenant.
The UAE's 2020 Federal Decree No. 26 (effective 2021) amendments to the Companies Law removed the mandatory 51% UAE national ownership requirement for most mainland limited liability companies. This means foreign investors can now own 100% of a mainland UAE LLC in most business activities (some strategically sensitive sectors retain Emirati ownership requirements). This significantly changes the free zone vs mainland calculus: many businesses that previously needed free zones for full foreign ownership can now operate on the mainland with 100% foreign ownership at potentially lower costs. Consult a UAE corporate lawyer to confirm your specific activity is eligible.
