Dubai tenancy legislation also applies to commercial leases, although commercial lease terms and negotiations can differ from residential tenancies. While the current DLD Smart Rental Index focuses on residential properties, any proposed change to commercial rent should be considered in accordance with the applicable tenancy legislation and the terms of the individual lease. Generally, 90 days' notice is required if either party wishes to amend the rent or other lease conditions before renewal, unless otherwise agreed between the parties. Commercial rent is also generally subject to 5% VAT.
Commercial property is a specialist market. An experienced broker can advise on positioning and pricing, market the property to relevant occupiers or investors, manage enquiries and viewings, negotiate commercial terms and coordinate the transaction. A broker with active market knowledge may also have access to businesses or investors already seeking similar premises.
Not always. Your property search and business setup can often progress in parallel, but the premises must be suitable for the intended licensed activity and the licensing authority may require an approved business address or tenancy documentation before the licence is finalised. It is important to confirm the activity and jurisdiction before committing to premises.
A business operating in Dubai generally requires the appropriate licence for its activities and jurisdiction. Mainland businesses are licensed through Dubai's Department of Economy and Tourism, while free-zone businesses are licensed by the relevant free-zone authority. The licence type and approvals required depend on the activity and company structure.
Yes. Businesses in Dubai operate within UAE and Dubai legislation as well as the rules of the relevant licensing authority, free zone, building and activity. Requirements can include licensing, corporate, tax, employment, health and safety and sector-specific approvals. Professional business-setup and legal advice should be taken where appropriate.
Dubai has numerous free zones serving different sectors, including major business districts such as DMCC, JAFZA, Dubai Airport Freezone, Dubai Internet City, Dubai Media City and Dubai International Financial Centre. Each free zone has its own licensing, property and operational rules, so the most suitable location depends on your business activity and requirements.
Free zones can offer 100% foreign ownership, the ability to repatriate capital and profits, specialised business ecosystems, streamlined company formation and a range of office and workspace options. Tax and customs treatment depends on the company, activity and applicable UAE legislation, so 'tax free' should not be assumed. The right structure should be selected with appropriate corporate and tax advice.
Yes. Exclusive Links works with professional partners who specialise in company formation and business setup. We can introduce you to an appropriate provider while our Commercial team assists with finding premises that suit your intended activity, licence and operational requirements.
Commercial property finance is available subject to lender criteria, the property, the borrower and the intended use. Deposit requirements, rates and lending terms can differ from residential mortgages. Exclusive Links can introduce you to established mortgage partners who can assess available options.
An offshore company is generally structured for holding assets or conducting business outside the UAE and is not the same as a mainland or free-zone operating company. The ability to conduct business in the UAE, lease premises or own particular property depends on the entity and jurisdiction. Specialist corporate advice should be taken before choosing a structure.
Foreign investors can purchase qualifying commercial property in designated ownership areas, subject to the title and ownership rules applicable to the property and purchaser. A commercial property can then be leased to a suitable occupier, with the lease, VAT and licensing requirements properly addressed. When assessing potential ROI, investors should consider not only the expected rental income but also ongoing costs such as service charges, maintenance, management, vacancy periods and other property or community-related charges. Exclusive Links can assist with acquisition, leasing and ongoing property management.
It depends on your business plan, available capital and expected length of occupation. Leasing can offer flexibility and lower initial capital commitment, while ownership can provide greater control and create a business asset. The decision should consider finance costs, service charges, fit-out, VAT, future space requirements and the opportunity cost of capital.
Before committing to a commercial property, confirm that the premises are compatible with your intended licensed business activity and eligible for the required Ejari registration. You should also check any landlord or building approvals, fit-out and NOC requirements, relevant authority approvals, signage rights, parking and access, utilities and service charges. The lease itself should be reviewed carefully, particularly the renewal and termination provisions, rent and payment terms, maintenance responsibilities and any reinstatement obligations at the end of the tenancy.
In addition to the annual rent, commercial Tenants should budget for a number of potential occupancy costs. These may include a security deposit, agency fee, VAT, Ejari or registration fees, utilities, fit-out costs and deposits, authority or NOC charges, insurance, cooling or chiller charges, business licensing costs and applicable service or community charges. Depending on the property and location, there may also be additional landlord, community, authority or property-related charges payable on top of the rent, sometimes under a separate payment structure. These can represent a significant additional cost and should be understood before committing to a lease. As charges vary considerably between buildings, communities and commercial areas, your Exclusive Links Commercial Consultant will help identify the applicable costs for the individual property so you can understand the full occupancy cost, not simply the headline rent.
The sale and lease of commercial real estate are subject to VAT at the standard UAE rate of 5% where the transaction constitutes a taxable supply under UAE VAT legislation. VAT obligations should always be confirmed based on the particular transaction, property and parties involved.
This depends on the free-zone authority, the company's licence and whether additional mainland permissions or a dual licence are required. The position should be confirmed before signing a lease.
A change of use may be possible, but it will depend on the property, its existing permitted use and the proposed business activity. Approval may be required from the landlord, building or community management, relevant licensing authority, Dubai Municipality and/or other competent authorities. The proposed use must also be compatible with the business licence and any planning, fit-out, health and safety or operational requirements. As property classifications can be broad - such as office, retail, industrial or warehouse - the suitability and required approvals should be confirmed before committing to the property or commencing any works.
Shell-and-core space is generally handed over with the basic structure and services, while fitted or semi-fitted premises include varying levels of internal finishes and infrastructure. The exact specification should always be checked because terminology can vary between buildings.
AI and data tools can help organise listings, rents and location information, but they cannot replace due diligence on permitted use, licence compatibility, fit-out condition, access, lease terms and live market negotiation.
Yes. Commercial tenancy contracts in Dubai should be registered through Ejari, Dubai Land Department's tenancy registration system. An Ejari certificate provides an official record of the lease and is commonly required for business licensing, licence renewal and other government or authority procedures. The tenancy details and permitted use of the premises should be consistent with the company's licensed activity, so it is important to confirm that the property is suitable and eligible for the required registration before committing to the lease.
