Tom Bohills, Founder & Principal at Founders Law, breaks down the essential legal considerations for global tech founders setting up a business in Dubai.
As Dubai cements its position as one of the world’s fastest-growing tech ecosystems, more founders are looking to the emirate as a launchpad for global expansion. With the Dubai tech ecosystem reaching a combined market valuation of $43b in 2024 and the city ranking first globally for attracting foreign direct investment, the opportunities are clear.
In our new report, Dubai Tech: The Road to 2033, we interviewed Founders Laws’ Tom Bohills, who outlines how to navigate the legal landscape when setting up a business in Dubai. He breaks down the five essential legal considerations for companies expanding in the region.
Founders Law, which partners with hyper-ambitious companies to accelerate their growth from idea to exit, has recently gained a license to open offices in Dubai, supporting companies and founders as they enter and expand across the region.
1. The Set Up: Business Licensing and Registration
Considerations
To open a business in Dubai, securing a valid trade licence is crucial. International founders often operate within Dubai’s free zones, benefiting from 100% founder ownership, favourable tax policies, and a globally connected environment. Each free zone offers specific industry-focused advantages, such as those tailored to technology, media, healthcare, and logistics.
Advice
Make sure you pick the right Dubai free zone for your business needs. Dubai free zones are tailored to different industries such as technology, media, healthcare, and logistics. Certain Dubai free zones also operate under different laws. For example, UK-based founders (especially in Fintech and/or the Crypto space), may prefer the heavily tech startup focused Dubai International Financial Centre (DIFC), which operates according to familiar English common law principles, independent of UAE federal law.
Resources
The specific Dubai free zone websites provide helpful detailed guidelines to support founders in making the right choice (see DIFC).
2. Financial Regulations and Banking

Considerations
Not unlike the UK, the UAE’s regulations on anti-money laundering (AML) and combating the financing of terrorism (CFT) are strict, impacting how founder’s businesses open bank accounts and process payments in the region. Due to this regulatory scrutiny, many founders looking to operate in Dubai often experience challenges with obtaining the requisite bank approvals.
Advice
In their planning stages, founders should ensure that their businesses’ financial operations meet Dubai’s AML and CFT requirements. As of February 2024, the UAE was removed from the global Financial Action Task Force risk register, making it easier to do business internationally. When choosing a bank, founders should look for those institutions with experience in the sector in which the founder’s business operates, to simplify the account-opening process.
Resources
The UAE Central Bank website offers helpful AML/CFT guidelines, but consulting with Founders Law can be particularly beneficial in ensuring that founders fully understand and meet compliance obligations. Consider also seeking assistance from local business setup advisors, who often have partnerships with tech-savvy banks.
3. Intellectual Property Protection
Considerations
When setting up a business in Dubai, protecting your intellectual property (IP) is essential. The UAE is a signatory to major international IP conventions, but local enforcement varies. Remember that existing IP protections elsewhere in the world, such as the UK, do not automatically apply in the UAE.
Advice
It is crucial for founders to proactively secure their startup’s or scaleup’s IP to avoid the risks of counterfeiting, unauthorised use, and infringement, particularly given the pace of growth and innovation in the region. Founders should look to proactively register their trademarks, patents, and copyrights with the UAE Ministry of Economy, particularly in the founder’s industry niche. Investing in a local IP lawyer is highly recommended, as they can guide founders through the nuances of UAE IP law, assist with documentation, and ensure robust protection measures. If a founder’s services or products are already protected elsewhere in the world, it is still essential to follow the required steps in the UAE to secure IP rights locally in the region.
Resources
The Ministry of Economy’s IP section provides IP resources and guidelines. Dubai free zones also provide informational resources and connections to IP experts, further assisting founders in understanding and securing their IP rights (see for example, the DIFC’s Guide to the DIFC IP Law).
4. Data Protection and Privacy Compliance
Considerations
While the Dubai mainland follows the UAE Federal Data Protection Law, many of Dubai’s free zones have their own data protection laws. For example, the DIFC’s ‘DIFC Data Protection Law No. 5 of 2020’, which aligns closely with the General Data Protection Regulation (GDPR), is widely considered to be one of the most advanced data protection frameworks in the region. Founders must implement robust data protection policies, especially as non-compliance can result in substantial fines.
Advice
Where startups and scaleups intend to handle personal data of UAE-based data subjects, founders will need to adopt strict operational measures to protect user privacy and data security. UK and EU based founders who choose to operate in a Dubai free zone (such as the DIFC), would benefit from operating according to familiar practices to those of GDPR which apply back home. That being said, all UAE law does have its nuances, so consider working with local legal advisors to navigate specific compliance requirements.
Resources
The UAE’s Data Office provides resources, and the UAE’s Ministry of Justice website offers legal insights on compliance.
5. Employment Regulations and Visa Sponsorship
Considerations
Dubai’s employment laws are designed to protect both founders themselves and their prospective employees, covering essential and familiar areas such as employment contracts, wage protection, health insurance, working hours, and end-of-service benefits. As a prospective employer, a tech founder considering an expansion or launch in Dubai must arrange visa sponsorship for themselves and their employees, ensuring legal residency and work permits, a process that often varies between mainland and Dubai free zone setups.
Advice
While mainland companies must adhere to federal labour laws, most of the Dubai free zones have their own streamlined employment, visa and HR laws and regulations, often simplifying compliance for startups and scaleups who are looking to attract talent. It is important for founders to still acquaint themselves with the intricacies of all such Dubai free zone employment-related laws and regulations. Many Dubai free zone employment contracts will often need to include provisions mandated by UAE law and/or by enforced policies specific to the chosen Dubai free zone (e.g. one-time return flights back to the employee’s home country per year, reduced working hours for Ramadan observance, and mandatory inclusion of private healthcare). When it comes to hiring talent, Dubai free zones will also often partner with local and international recruitment agencies, offering startups and scaleups easy access to specialised recruitment services that streamline hiring.
Resources
The UAE Ministry of Human Resources and Emiratisation (MOHRE) provides current labour regulations and visa guidance. We also recommend consulting with a local lawyer operating on the ground to ensure that you remain compliant with visa and employment procedures. Founders Law can provide hands-on assistance, ensuring compliance with employment regulations and supporting you through each step of the hiring process.