More than 40 foreign companies have launched "onshore" in Dubai in the past four months under a special public-private partnership model that fast-tracks their entry to the market.
Paperwork and the length of time required to set up a business have been minimised under the process, set up in October between the Foreign Investment Office (FDI Dubai) and The Links Group (TLG), which helps foreign companies set up in the region.
The Dubai Government is keen to increase the number of companies setting up outside the many free zones scattered across the emirate.
Setting up onshore gives companies greater freedom to do business with other companies operating outside the free zones, say government officials.
"Our partnership with the private sector is in line with our role in assisting the Government to bring foreign investment into Dubai and shows [the Dubai Department of Economic Development's] confidence in the private sector and its competitiveness," said Khalid al Boom, the executive director of the department's investment promotion agency.
The partnership was helping to encourage more companies to consider setting up onshore, Mr al Boom added.
Foreign companies considering establishing in the emirate often favour one of the free zones as they offer the benefit of reduced red tape required to launch, and complete ownership of their business and a low-tax environment.
Setting up outside a free zone limits a company to 49 per cent ownership and requires that company to have a local partner.
TLG helps companies in the process of finding business partners. Some companies setting up within the free zones did not have proper licences to operate onshore, said Stuart Curtis, the group's managing director.
"Small and medium enterprises and multinational companies need to recognise that to provide products and services onshore in Dubai they have to be appropriately licensed," Mr Curtis said.
Under the public-private partnership, direct feedback from TLG enabled FDI Dubai to move quickly on applications from companies, he said.
Established in Dubai in 2002, TLG helps to complete all legal and commercial processes.