United Arab Emirates: Operating a Business

Sole Proprietorship

Number of partners: One person. Can be 100% owned by non-residents.
Capital (max/min): No minimum capital.
Shareholders and liability: The individual entrepreneur is responsible for assets of the company over his personal goods.

Public Joint-Stock Company

Number of partners: Minimum ten members. Shares freely transferable, but 51% must be held by UAE nationals.
Capital (max/min): Minimum AED 10 million.
Shareholders and liability: The responsibility is limited to the contributed amount.

Private Joint-stock Company

Number of partners: Minimum three shareholders. Shares freely transferable, but 51% must be held by UAE nationals.
Capital (max/min): Minimum AED 2 million.
Shareholders and liability: The responsibility is limited to the contributed amount.

Limited Liability Company

Number of partners: Minimum 2 partners. Maximum 50 partners.
Capital (max/min): No minimum required.
Shareholders and liability: The responsibility is limited to the shares in the capital of the company.

General Partnership

Number of partners: Minimum two partners. All the partners have to be UAE nationals.
Capital (max/min): No minimum required.
Shareholders and liability: Unlimited joint liability.

Limited Partnership

Number of partners: At least, one general partner (only UAE nationals) and one limited partner.
Capital (max/min): AED 500,000.
Shareholders and liability: At least one partner must have unlimited liability. Responsibility of other partners is limited to the amount contributed.

Business Setup Procedures

The Competent Organisation

The UAE Chambers of Commerce and the competent ministry.

For Further Information

Visit Doing Business, to find out about business registration procedures in the United Arab Emirates.
Companies listed in the Dubai Stock Exchange

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kompass - UAE Business Directory

Recovery Procedures

Principle

The insolvency of a company does not necessarily lead to liquidation.

Minimum Debt-to-Capital Ratio Triggering Liquidation

Ratios depend on the type of company. For LLCs and JSCs, the general assemly or an extraordinary assembly can demand the liquidation of the company if losses amount to half of the capital. If losses rise to 3/4 of the capital, the shareholders representing the remaining quarter can demand liquidation.

Bankruptcy Laws

Bankruptcy is regulated by federal law no. 18 of 1993 on commercial transactions.

Reorganization and Rehabilitation Laws

The Code of Commerce applies. There are no special conditions.

For Further Information About the Labour Market

The National Human Resource Development & Employment Authority

Opening Hours

 

• Legal Weekly Duration

8 hours per day, 9 hours for employees of hotels and restaurants. During the month of Ramadan, the daily work duration is reduced by two hours for Muslim employees.

• Maximum Duration

48 hours a week.

• Night Hours

Between 9:00 p.m. and 4:00 a.m.

Working Rest Day

Once a week on Friday. Most companies are also closed on Saturdays.

Paid Annual Vacation

Two days per month if the contract period is longer than 6 months but less than one year.

30 days per year if the contract period is more than one year.

Retirement Age

60 years old.

Child Labour and Minimum Age For Employment

Child labour is prohibited for children under the age of 15. There are special provisions for minors between 15 and 18 years of age.

Pay

Minimum Wage

There is no universal minimum wage for all workers, but the Ministry of Human Resources and Emiratisation (MoHRE) has set a minimum wage of AED 6,000 (approx. USD 1,633) per month for UAE nationals in the private sector effective 1 January 2026.

Average Wage

In UAE, the average monthly salary is around AED 15,000 in 2026 (approx. USD 4,084).

Other Forms of Pay

• Pay For Overtime

Overtime is paid 25% in addition to the normal salary of the employee.

• Pay For Rest Days Worked

50% in addition to the normal salary of the employee. It is not possible for the same employee to work on two consecutive Fridays unless working for a daily newpaper.

• Pay For Night Hours

There is no special allowance for working at night.

• Pay For Overtime at Night

For overtime between 9:00 p.m. and 4:00 a.m. in the morning, the employer should pay the employee a 50% markup on the normal salary.

Social Security Costs

The Areas Covered

Pension insurance (for nationals only)

Contributions

Contributions Paid By the Employer: Please note that social security contributions are applicable in the UAE only for UAE nationals, and nationals of the GCC. If UAE/ GCC nationals are employed, then both the employer and the employee will be required to make social security contributions to the General Pension and Social Security Authority (GPSSA). A payment of 12.5% by the employer (15% if the employer is a public entity). Emirati nationals have free access to healthcare.
Contributions Paid By the Employee: Employees who are UAE nationals pay a 5% contribution which is deducted from their salary. Emirati nationals have free access to healthcare. Foreign employees are recommended to subscribe to an additional insurance.

Competent Organization

General Authority for Pensions and Social Security
Abu Dhabi Retirement Pensions and Benefits Fund

Recruitment

Recruitment Agencies

There is a governmental agency for hiring nationals The National Human Resource Development & Employment Authority.

Recruitment Websites

Online job offers
Gulf Talent
Search engine for jobs in the Emirates

The Contract

Dispute Settlement

Social Partners

Social Dialogue and Involvement of Social Partners

Trade unions are banned in the UAE.

Labour Unions

Ministry of Human Resources and Emiratisation

Regulation Bodies

Ministry of Human Resources and Emiratisation