# New Nightmare for Small businesses in Dubai



## celticcavegirl (Oct 18, 2012)

Hi all, just searching for any people who may be in the same boat as be, being affect by new government regulations for DED licenses in Dubai

When I opened my company I ended up getting a DED license as some of my business is direct B to C sales (I do personal styling and also sell made to measure garments, which are imported from Europe). I struggled to find a small enough office for my needs and ended up in a business center - which I love and would like to remain in

Today I found out that you now cannot get a DED license unless you have an office of 200 sq ft minimum (if your office is a business center). Unfortunately for me, I cannot afford the extra rent I would have to pay to get an office over this size (it is a lot more than my current rent!!)

Is anyone else in the same position? I am struggling to see many options. If I go searching for a new office the I will face the same issues as before - many offices are far too large, and often unfitted. It's been suggested that I get a freezone company (eg. Furjairah Creative Freezone as a personal stylist/designer/consultant) and route any sales through my companies London office (so people are buying from London, rather from me). Or I get something like an Ajman freezone trade license and pay the freezone export fee. The only other option I can see it to get an second office only do to the DED license (you know the deal, it is a cheap part of Dubai and you only use it for DEWA and your license) but I think they are really cracking down on this

Has anyone else been affected by this? What moves are you taking? I guess they're making this stupid regulation to cut down on fake businesses but it will just force small businesses to either shut down, or break the rules. 

Very disappointing to see it getting harder and harder for small businesses in Dubai...


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## BedouGirl (Sep 15, 2011)

Have you looked at Motor City? I hear there is office space there and it's more reasonably priced.


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## celticcavegirl (Oct 18, 2012)

Unfortunately it's not really an option location-wise. I might look as Business Bay


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## celticcavegirl (Oct 18, 2012)

Also I was told by the person/company that I'm currently renting from that if you get a freezone licence then you can only get an office or operate in that freezone.

Which technically may be true but I know there are quite a lot of people who do not follow this - otherwise places like CreativeZone would not exist!! Do we really think that everyone with a RAK freezone or Jebel Ali Freezone or Fujairah freezone license does absolutely no business in Dubai??!?!


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## Stevesolar (Dec 21, 2012)

celticcavegirl said:


> Also I was told by the person/company that I'm currently renting from that if you get a freezone licence then you can only get an office or operate in that freezone.
> 
> Which technically may be true but I know there are quite a lot of people who do not follow this - otherwise places like CreativeZone would not exist!! Do we really think that everyone with a RAK freezone or Jebel Ali Freezone or Fujairah freezone license does absolutely no business in Dubai??!?!


Hi,
Be careful - there is a difference between consulting/training and product based businesses. The first can operate anywhere on freezone company - the latter is more complicated!
Cheers
Steve


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## celticcavegirl (Oct 18, 2012)

Stevesolar said:


> Hi,
> Be careful - there is a difference between consulting/training and product based businesses. The first can operate anywhere on freezone company - the latter is more complicated!
> Cheers
> Steve


Yes, if you're selling products you can only sell in the freezone, and if it's taken out the freezone then there is a 3-5% "import" charge. It would be personal styling which is a design/consultancy but nevertheless I was informed that not only could I not rent an office outside the freezone, but that I could not practise any kind of business outside the freezone. Which I am not convinced is totally true, as you stay, as I always understood that if you were acting as a consultant you could consult wherever you wanted.

Anyway, it's a moot point because the office complex are rearranging all the offices so that none are under 200 sq ft. So my options are to try and manage a 50% rent increase, move office and try and get an office of the correct size, in an ok location at an affordable price, or pack up and leave dubai.  :boom:


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