DED: Department of Economic Development

In the UAE, business licensing is handled at the emirate level, not federally. Each emirate has its own Department of Economic Development - the most prominent being Dubai's, now officially operating under Dubai Economy and Tourism (DET). The DED issues mainland trade licences that permit a business to operate legally within that emirate. These are distinct from free-zone licences, which are issued by individual free-zone authorities and carry their own separate rules.\n\nThe Dubai DED maintains a list of over 2,000 approved mainland commercial activities. When applying for a licence, a business must select the specific activities it intends to carry out - the licence is only valid for those listed activities. Licence types include standard commercial licences, professional licences, and home-based options such as the DED Trader licence, which is a home-based business permit issued by Dubai Economy and Tourism that allows online trading without renting a physical office space.\n\nOther emirates - Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain - each operate their own equivalent authority. A licence issued by one emirate's DED does not automatically authorise trading in another emirate. Expats setting up a business should confirm which emirate's DED is relevant to where they intend to operate.

For expats looking to set up or work within an onshore UAE business, the DED licence is the foundational legal document. Without it, the business has no standing to operate on the UAE mainland. This matters for banking too: most UAE retail banks require a valid, current trade licence - issued by the relevant emirate's DED or an approved free-zone authority - before opening a business account or processing commercial transactions.\n\nExpats should note that the DED licence type determines what banking and commercial activity a business can conduct. A DED Trader licence, for example, is structured for home-based online trade and may not satisfy the requirements of all banks or payment service providers. If you are unsure which licence category applies to your situation, check directly with the relevant emirate's DED or a licensed business setup consultant.