What UAE Businesses Need to Know About July 2025 Regulatory Changes
Let’s get right into it. July brought a new set of updates across the UAE Businesses that every business owner needs to understand. These aren’t small policy changes buried in legal jargon. These are real shifts that impact how you operate, who you hire, and how you grow in the months ahead. If you are in the process of setting up a business, or already managing one, this is the kind of news that deserves your attention. You Can Now Start a Business While Working Full-Time This is the big one. If you are employed full-time in the UAE and have been thinking about starting your own venture, the rules are finally clear. As of July 2025, employees can launch or co-own a business in the UAE, as long as they have a No Objection Certificate from their current employer. That alone changes the game for thousands of professionals who have had startup ideas on hold. Here is what that means for you: You can legally test or build a side business while keeping your job You no longer need to leave your corporate role to become a founder You must still ensure the activity does not compete with your employer This change encourages more entrepreneurship, more innovation, and more flexibility in how careers are built in the UAE. If you are considering this route, make sure your licensing and structure are set up correctly. That’s where proper support makes a difference. The Emiratisation Deadline Has Passed By June 30, companies (UAE Businesses) in the private sector with 50 or more employees were required to increase their Emirati workforce by one percent. That deadline has now passed. The Ministry is not just encouraging compliance anymore. It is inspecting it. Businesses that missed the target or tried to bypass the rules will likely face penalties, audits, or both. So what should you do now? Review your Emirati hiring status Prepare documentation to show legitimate employment Expect random checks in the second half of the year This is not a temporary campaign. It is a core policy direction. The sooner your hiring strategy reflects that, the better. Flexible Work Protocols Are Kicking In With the peak of summer heat, Dubai and Ajman have both updated their guidelines to encourage remote and flexible working models. This is more than just a seasonal reminder. The updated guidelines apply to both outdoor and indoor operations. For those in industries like logistics, construction, or retail, you need to follow the midday break regulation. It prohibits outdoor work between 12.30 pm and 3 pm from now through mid-September. If your business operates indoors, now is a good time to revisit your policies. Many companies are offering early shifts, remote days, or flexible schedules to protect employee well-being and maintain productivity. This kind of practical flexibility is becoming the norm, not a perk. UAE Residents Can Now Travel Visa-Free to Armenia A small update with big implications. If your team travels for work or your company has regional partnerships, you should know that UAE residents can now visit Armenia without a visa. As long as your UAE residence visa is valid for at least six months, you are eligible for entry without the hassle of extra documentation. This makes cross-border deals, meetings, and collaborations more accessible than before. It is another step toward a more connected business ecosystem, especially for founders and executives expanding into new markets. Free Zones Are Tightening Visa Quotas If your business is based in a free zone and you plan to expand your team, pay attention. Several zones have updated their approach to visa allocations. What used to be a simple request is now tied more closely to your business activity. Authorities are asking for proof that your company is actually operating. That includes invoices, bank activity, and valid office space. Here is the real takeaway: Free zones want to prioritize growing businesses Dormant or passive companies will face more restrictions Active companies in key sectors like tech or logistics will be prioritized If you plan to scale in the next six months, make sure your trade license, office setup, and business records reflect a real presence. It is not about paperwork anymore. It is about performance. A Quick Summary for Business Owners To wrap this up, here is what July 2025 really means for you: You can start a business while employed if your employer provides a No Objection Certificate Emiratisation targets are now being enforced with real inspections Work flexibility is recommended for summer, and midday work restrictions apply Free travel to Armenia is available for eligible UAE residents Free zone visa rules now favor active and transparent companies These aren’t distant changes. They affect daily operations, staffing, and expansion plans right now. How AB Capital Services Can Help If you are building a business in the UAE, AB Capital Services is here to simplify the process. We support you across every step of setup and growth, with clarity and precision. We handle: Mainland and Free Zone business setup UAE visa services for investors, employees, and dependents Corporate bank account opening Corporate tax registration and compliance Whether you are launching your first company or scaling an existing one, we make sure you are set up the right way. Frequently Asked Questions Can I start a UAE business while working full-time? Yes. You need a No Objection Certificate from your current employer and must apply for the appropriate business license. What is the Emiratisation deadline for 2025? It was June 30. Private companies with 50 or more staff were required to increase Emirati representation by one percent. Are midday break laws mandatory? Yes. Outdoor work is restricted between 12.30 pm and 3 pm during summer. Violations can lead to fines. Is travel to Armenia now visa-free for UAE residents? Yes, for those holding a valid UAE residence visa for at least six months. How many visas can a Free Zone company get in 2025? It depends on your business activity
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