Home Services Difference Between Free Zone and Mainland: Key Insights

Difference Between Free Zone and Mainland

  • If you are registered in a free zone, renting premises is only possible within it. You can go beyond, but only with a special permit (NOC), and even then not always.
  • In a local (mainland) company, the choice is almost unlimited. You can rent any property on the market — an office, a warehouse, a showroom, and even a standalone building.

What to Know When Renting a Warehouse or Office

  1. Check available spaces: not every zone has warehouses over 400 m².
  2. Consider infrastructure: office inside the warehouse, sewage, power supply — this affects permits.
  3. In the UAE, on the local territory of the Emirate, you can now buy not only housing but also commercial real estate (in freehold status) and even pass it on as inheritance.

Impact of Rent on License

When renting premises, 5% of the annual rental cost is added to the cost of your Local company license. If you rented cheaply in the first year and then opened a warehouse, the license cost may increase unexpectedly.

Important

The more properties, the higher the total amount.


How to Choose and Evaluate Premises

  • Use trusted resources, for example:

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  • Add to rent:

— 5–10% — security deposit;

— up to 10% — agent commission;

— utility fees and 'dirham' fees (they vary by area).

We help check and verify all hidden fees when renting a particular premises, conduct a review of the accompanying documents to the lease agreement, and also draft additional agreements within the framework of current legislation to protect your interests.


Need Help Selecting and Checking Conditions?

We work not with square meters, but with business goals. We will find a solution that saves time, money, and nerves.

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What Next After Renting?

  1. Connecting electricity and water (for example, in Dubai — through DEWA).
  2. Account registration, deposit payment (2.5–4 thousand AED).
  3. Accounting for additional fees: some business centers have hidden costs.

What If You Are a Manufacturer?

For chemical or industrial productions, regular warehouses are not suitable. A government body may require you to rent a plot of land for building a factory with the necessary safety standards. This is a different level of planning and licensing.

We help navigate all stages: from site selection to project documentation.


Logistics and Restrictions

Even a perfect premises may not be suitable if:

  • It is too far from clients.
  • It does not support night or oversized shipments.
  • It falls under time restrictions for cargo movement.

We analyze not only the rent but also the real efficiency of your location.


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