What is changing for UAE employers

A mainland licence lets a business trade anywhere in the UAE (and, since 2021 reforms, most activities allow 100% foreign ownership). A free zone licence is cheaper to set up and often 100% foreign-owned by default, but restricts direct trade onto the mainland without a distributor or extra registration.

• Buying a mainland business usually means transferring more government relationships (municipality, tenancy, sector regulator) than a free zone one.
• A free zone business can look attractive on paper but may need extra steps to reach mainland customers — check what the business actually sells before assuming it can.
• Saudi Arabia and Qatar have their own separate foreign-investment licensing bodies (MISA in Saudi, MOCI in Qatar) — free zone/mainland is a UAE-specific distinction.

Across most Gulf markets, what changes hands is rarely the licence itself — it's the underlying assets, lease, equipment and goodwill. The licence is typically cancelled and re-issued to the buyer once they meet the same eligibility the seller originally met.

• Confirm the buyer qualifies for the activity code before signing anything — some activities require a specific nationality mix, minimum capital, or professional qualification.
• Settle the seller's outstanding government fees, utility accounts and any bounced-cheque exposure before transfer.
• The premises lease (Ejari in Dubai, or the local equivalent elsewhere) has to be validly assignable to the buyer — check this before valuing the business.

• Verify the trade licence status directly with the issuing authority — not only through the seller.
• Check the lease or property title with the relevant land or tenancy authority.
• Request VAT/tax clearance and staff end-of-service liability figures.
• Clarify liability for any outstanding debts, bounced cheques, or pending labour claims tied to the business.
• Physically inspect the equipment against the seller's inventory list, and verify revenue against bank statements or POS records, not just the seller's own summary.