In the UAE, regulated business activities refer to business operations that require specific approvals, licenses, or permissions from government authorities or regulatory bodies before they can legally operate.

These activities are often subject to strict supervision to ensure compliance with local laws, safety standards, and industry regulations to avoid misuse and malpractices.

Regulated Business Activities in the UAE

1. Financial Services, including activities such as banking, insurance, investment advisory, brokerage, and, most recently, virtual assets, require approval from external authorities such as the Central Bank, Virtual Assets Regulatory Authority (VARA), etc.
2. Healthcare and Pharmaceuticals require approvals from the Ministry of Health and Prevention (MOHAP), Dubai Health Authority (DHA), or Abu Dhabi Department of Health (DOH).
3. Real Estate Brokerage or Property Management requires approval from the Dubai Land Department (DLD) or equivalent authorities in other emirates.
4. Education and Training requires approvals for both institutes and educators from the Ministry of Education, KHDA (Knowledge and Human Development Authority) in Dubai, or equivalent bodies in other emirates.
5. Activities in the Oil, Gas and Energy Sectors are heavily regulated and require permission from relevant energy authorities such as ADNOC, CICPA, and SPC Approvals.
6. Travel and Hospitality Businesses must obtain approval from the Department of Tourism and Commerce Marketing (DTCM) in Dubai or equivalent authorities.

Further industries and activities are regulated, and all have dedicated authorities within their sectors such as food & agriculture, media, security services to aviation.

Business Setup in the UAE

Choosing the right jurisdiction will depend on the nature of your business and its activities. Both the UAE Mainland and Free Zone options have strengths and specializations. Mainland typically caters to a mix of international and local markets while free zones may be better for international trade.

For example, the rising reputation of Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) free zones across the financial services, professional services, and fintech sectors.

While Dubai Multi Commodities Centre (DMCC) is the destination of choice for firms specializing in precious stones & metals, agri-products, energy, and digital assets. Different free zones have strengths which they play into.

Why Does My Business Need Regulatory Approvals?

Regulated business activities need to be carefully managed which requires companies engaging in the activity to obtain permits from the specific regulatory authority overseeing the sector. This ensures that the business will meet safety, quality, and operational standards set by regulators. Failure to comply with the regulations can lead to penalties, fines, or suspension of business activities.

In some cases, a local UAE national or company is required as a partner for activities that require more regulation. Sovereign PPG's corporate sponsorship platform can assist clients who require a local partner. 

If you require assistance with setting up a company in the UAE that requires specific regulatory approvals, contact Sovereign PPG. As a corporate service provider, we have the knowledge and experience with setting up companies across all industries that require specific external approvals, whether your business operates in the healthcare, education, or newer Artificial Intelligence (AI) and Virtual Assets spaces, our relationships with regulators such as VARA, KHDA, DHA, and other regulatory bodies assists our clients with a smooth set up solution.

Contact us at +971 4 270 3400 email us at Dubai@sovereigngroup.com or AD@SovereignGroup.com or complete the contact form below and we will be delighted to assist.