30 Jan An overview of the benefits of establishing a business in DMCC and the types of business licences available
Why you should consider DMCC for your next company
Established in 2002 and located in the UAE’s largest free trade zone of Jumeirah Lakes Towers, the Dubai Multi Commodities Centre (DMCC) is fast becoming one of the leading free trade zones for trading international commodities in the world. Named Global Free Zone of the year eight times in a row by the Financial Times FDI magazine, it has everything you need to establish, grow and scale your business quickly and effectively.
The free zone was originally created to support businesses trading in commodities such as gold, precious stones, tea, coffee, agro materials, base metals, virtual assets and cocoa. However, it is now home to over 22,000 registered companies across approximately 600 business activities as diverse as financial services, technology, construction, health services, education and media.
Going from strength to strength
2021 marked DMCC’s most successful year ever. The launch of its dedicated Crypto Centre and the expansion of its commodities centres have helped to bolster its stature in the region and attract a record 2,485 new companies from major global markets such as China, USA, UK and Russia.
This popularity demonstrates the DMCC unique value proposition and reflects the quality of facilities and services it offers.
What are the main benefits of setting up in DMCC?
One of the primary advantages of registering a business in DMCC is the allowance for full foreign ownership. As well as this, members also benefit from full exemption from corporate tax and personal income tax for a period of 50 years from company inception within DMCC.
Other key benefits include:
- 100% repatriation of company capital and profits
- Fast and efficient registration process
- Support with immigration, labour and visa issues
- Central location with easy access to public transportation and wide range of accommodation
- Extensive choice of office premises and business facilities including fully furnished offices, meeting rooms and conferencing facilities
- Availability of competitively priced freehold commercial properties for sale and lease
- Tax and import/export duty exemption
Industry specific benefits that DMCC offers
Cryptocurrency and Blockchain
DMCC’s growing reputation in the virtual assets sector has been remarkable. In large part thanks to the impact of The DMCC Crypto Centre which was launched in 2021 and is now home to the largest concentration of crypto and blockchain companies in the region.
DMCC was the first jurisdiction in Dubai to offer crypto licences and now there are over 500 crypto businesses operating from the centre all of which benefit from the world class service and infrastructure DMCC has created.
The centre is an all-encompassing ecosystem attracting crypto companies of all shapes and sizes from blockchain-enabled trading platforms to businesses involved in the issuance, listing and trading of crypto assets.
It offers a wide range of crypto licences and access to a supportive community of over 22,000 companies with accelerator programmes for startups, networking events and even opportunities for funding and mentoring.
Diamonds and Precious Stone Trading
DMCC’s government backed Dubai Diamond Exchange (DDE) has solidified Dubai’s status as the world’s third-largest diamond trading centre and enabled it to bridge the gap between producers in Africa, cutting centres in Asia and the consumer markets in Europe.
DDE provides precious stone traders and service providers the security of being a part of a globally recognised governance and trade practice network and the unique advantage of being able to access multiple global markets across the entirety of the supply chain.
DDE is the only legitimate entry and exit point for rough diamonds in the country and the only bourse in the GCC affiliated with the World Federation of Diamond Bourses (WFDB). This distinction provides its members with the security and assurance that the companies they trade with are reputable and adhere fully to the WFDB’s strict code of ethical business practice.
What types of business licences are available in DMCC?
There are three main types of business licences that are available in DMCC. These are:
Trading Licence – This covers all companies involved in import/export and the buying and selling of goods
Industrial Licence – This is for businesses engaged in manufacturing activities and those where natural commodities are converted into finished products
Service Licence – This is for the provision of any kind of service including education, medical services, health and beauty and financial services
What support services are available in DMCC?
As well as being a desirable and inclusive corporate registry, DMCC offers a range of financial services, trading solutions, investment platforms and networks to support the success of its member businesses. The following are a few examples of the services on offer:
DMCC Trade Flow – This is a flexible, customised online platform that allows users to register possession and ownership of commodities stored in UAE-based facilities. Through its partnerships with key players in the commodities industry, it also provides a wide range of financing solutions that facilitate access to the emerging markets of China and India.
Dubai Gold and Commodities Exchange (DGCX)
DGCX is a subsidiary of DMCC which was established to boost commodity trade flows throughout Dubai. It supports participants of the physical commodities markets by providing them with trading opportunities with key financial institutions and investment houses throughout the Middle East and globally. It also gives clients the opportunity to network and collaborate with influential figures within the commodities, securities and financial services industries.
DMCC Food Trade Group
The UAE imports 90% of its food requirements and is a key supplier for the Middle East region and beyond. The DMCC Food Trade Group is an industry network that was created to support its members in developing and growing their food trade businesses in the Middle East. It provides access to financing options, new business and networking opportunities as well as the practical guidance needed to succeed in the food trade industry.
AstroLabs
The tech industry in Dubai has exploded over recent years, thanks in large part to favourable investment incentives and a supportive infrastructure. AstroLabs is an extension of this. It is a tech centre with a wealth of facilities to support and nurture tech businesses in the UAE. It offers coding facilities, a mobile device development lab and training rooms to host workshops in fields such as analytics, big data, digital marketing, UX/UI design and start-up development.
Final Thoughts
DMCC began as a free zone dedicated exclusively for companies trading in physical commodities. Today, it is much more than that. It is a district that offers business licensing solutions for over 600 business activities across a diverse range of business sectors along with the support, guidance and infrastructure necessary to ensure the success of all its members.
How can Huriya Private help?
Huriya Private has over 20 years of experience in the domain of corporate structuring. We have unparalleled knowledge of business practices and legal requirements in the UAE as well as an international network of contacts and a deep understanding of the needs of modern-day high net worth clients and international businesses.
We can guide you through the process of setting up a business in DMCC and ensure that your business is fully compliant with all local laws and regulations. If you need help with this or any other immigration, financial or corporate structuring issue, please don’t hesitate to contact us on info@huriyaprivate.com and we will be happy to help.
