Dual licensing scheme launched by DMCC & DED
Dubai Multi-Commodity Centre (DMCC) and the Department of Economic Development of Dubai (DED) have signed a partnership agreement on the licensing of Dubai-based and DMCC-based companies allowing them to operate both within the free zone and onshore.
The respective memorandum of understanding was signed at DMCC’s headquarters in Almas Tower by Ahmed Sultan Bin Sulayem, executive chairman and chief executive officer of DMCC, and Ali Ibrahim, deputy director general of the DED.
As part of the collaboration of these two entities, a dual licensing scheme is being introduced to companies registered in DMCC, enabling them to establish their presence and to operate in mainland Dubai under a DED licence (with a no-objection certificate from DMCC).
According to Ahmed Sultan Bin Sulayem, DMCC is committed to removing all trade barriers and ensuring that member companies have access to the best infrastructure, services and opportunities required for their businesses to prosper.
These newest developments will undoubtedly please foreign investors who wish to remain sole owners of their companies and to have an opportunity to conduct business in the local market. At the moment, companies registered in the UAE free zones have no right to trade onshore despite being considered resident. To be able to conduct business in the local market, a special license is required which is difficult to obtain. Otherwise, a local partner is needed who will hold 51% of company shares.
Thus, DMCC which contributes over 10% to Dubai’s GDP and has been named the best free zone in the world for the fourth year in a row, further strengthens its leading position in the market and becomes more attractive for foreign investors.
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