Over 40,000 companies have sprouted in the country's more than 30 free zones, avoiding local sponsorship rules in the process.
Video:Free zones in the UAE entice business owners
Neil Parmar looks discusses The National's exclusive series on the growth of free zones in the UAE
Watch video in full screen here
Read all of our Free Zones series Learn more
But while these investors are able to fully control their companies without a UAE national owning at least a 51 per cent share, too many are unaware of the restrictions that apply when they want to do business outside the zones, legal experts caution.
The rule against trading directly with the rest of the country is clear when it comes to manufactured goods. But the trade in services and intellectual property is a big grey area where many companies may be exposed to legal risks.
Consultancies and other service providers often end up "working day-to-day outside the free zones" - even when they should not be, says Quentin Lowcay, the managing partner of the Kensington Swan law firm in Abu Dhabi.
Officials at Dubai Internet City say businesses there are supposed to provide service contracts so that authorities know where a company's staff is physically located during consulting work.
Other free zones are less strict about policing the whereabouts of company employees, but firms operating within a free zone could still end up being penalised if they are not properly licensed.
"There are grey areas," says James Bernard, the director of business development and client management at Jumeirah Lakes Towers.
Some legal experts say consultants can meet with potential and existing clients outside a free zone but that any actual work or services should be done from an office back at the zone.
"The other thing you have to look at is not just free-zone laws but immigration laws," warns Samer Qudah, a partner at the law firm Al Tamimi & Company.
"Employees are sponsored by the free zone itself. If they [work outside] of the free zone, they'll be in breach of the immigration laws," says Mr Qudah, who notes that such violators can be deported.
Fines for breaking the rules can also be harsh, Mr Qudah warns.
nparmar@thenational.ae
twitter: Follow and share our breaking business news. Follow us
Company profile
Name: Oulo.com
Founder: Kamal Nazha
Based: Dubai
Founded: 2020
Number of employees: 5
Sector: Technology
Funding: $450,000
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
Feeding the thousands for iftar
Six industrial scale vats of 500litres each are used to cook the kanji or broth
Each vat contains kanji or porridge to feed 1,000 people
The rice porridge is poured into a 500ml plastic box
350 plastic tubs are placed in one container trolley
Each aluminium container trolley weighing 300kg is unloaded by a small crane fitted on a truck
Volunteers offer workers a lifeline
Community volunteers have swung into action delivering food packages and toiletries to the men.
When provisions are distributed, the men line up in long queues for packets of rice, flour, sugar, salt, pulses, milk, biscuits, shaving kits, soap and telecom cards.
Volunteers from St Mary’s Catholic Church said some workers came to the church to pray for their families and ask for assistance.
Boxes packed with essential food items were distributed to workers in the Dubai Investments Park and Ras Al Khaimah camps last week. Workers at the Sonapur camp asked for Dh1,600 towards their gas bill.
“Especially in this year of tolerance we consider ourselves privileged to be able to lend a helping hand to our needy brothers in the Actco camp," Father Lennie Connully, parish priest of St Mary’s.
Workers spoke of their helplessness, seeing children’s marriages cancelled because of lack of money going home. Others told of their misery of being unable to return home when a parent died.
“More than daily food, they are worried about not sending money home for their family,” said Kusum Dutta, a volunteer who works with the Indian consulate.
