Ever considered going it alone? And by that we don’t mean venturing up to Burj Khalifa’s At The Top without anyone holding your hand. What we mean is freelancing. The opportunity to set your own working schedule, to pick and choose the contracts you take on, to be your own boss. What you need to be able to do all of those things (and more) are two things, a residency visa and a UAE freelance licence – this is a permit that allows you to work legally in the Emirates as a freelancer, a sole practitioner or an independent contractor. And with more and more people setting up on their own, it’s becoming an increasingly attractive prospect in the city. But where do you begin?
Who can freelance?
Firstly, there are only two career paths that you’re allowed to freelance in – education and media-related sectors. So if you’re an actor, screenwriter, journalist, PR, education advisor, researcher, or eLearning advisor, or in any way related to those industries, then you’re well placed.
In November 2020 the Abu Dhabi Department of Economic Development (ADDED) announced that UAE citizens, residents and non-residents can apply for freelance licenses in the UAE. The change aims to create more job opportunities in the UAE and will diversify the business sector in the capital. With the new license rules, freelancers can practice 48 different types of business in Abu Dhabi. Previously, the licenses were issued to UAE nationals only.
The Freelancer License enables businesses to tap into the experience and expertise in the local market and also provide workers with flexibility to work remotely from authorised locations. Applicants are not required to take office space and can apply for residency visas for themselves and their family.
To apply, applicants must ‘prove their relevant skillset’ and if the freelance activity is similar to their employment role. Permission from any employer is required before applying for the license.
What do you need?
To work as a freelancer in Dubai you’ll need a residency visa and work permit – which you can get from a free zone, including Dubai Media City, Dubai Studio City, Dubai Production City, Dubai Knowledge Park, Dubai Design District, twofour54 in Abu Dhabi and Fujairah Creative City. Costs for a permit head up to Dhs20,000 – and must be renewed every year.
However, in 2018 a new scheme was set up by GoFreelance from Dubai’s Tecom Group, launched in partnership with Dubai Creative Cluster Authority. With this site UAE residents can now apply online for a permit for Dhs7,500 at www.gofreelance.ae, which the team says is 70 percent lower than in the past. It also allows you to sponsor your family members. The aim is to attract more talent to the region – by making it more affordable and simpler to set up. According to organisers, it was started due to the “growth of the free business economy” and aims to “enable independent professionals and entrepreneurs to start their careers and make the most of their skills and talents.”
You’ll need a business plan, passport and visa. If you’re already under a parent or spouse visa, then you don’t have to apply for a new visa – you can apply straight for a Tecom permit, although you’ll need a no objection letter from your sponsor (husband or father). If not, you’ll have to go through the usual process to obtain a visa for Dhs3,250.
What the experts say
Independent financial adviser and senior partner at Holborn Assets, Keren Bobker, gives us the lowdown saying: “Anyone who is undertaking work who is not an employee or who doesn’t have a company trade license is going to need a freelance visa. In short anyone who receives any income, from any work, needs the right licence to operate legally.”
Bobker explains that the appropriate licence depends on the occupation and services provided. “There are different options depending on the actual activity and whether a visa is required in addition to the licence. A number of free zones offer freelance visas with most offering them for stated activities, largely in the media, education and tech fields,” she says.
While going solo may sound highly appealing, the process of obtaining a freelance visa might put you off. After all, aren’t there countless documents you need to supply and forms to fill out?
“The requirements vary by permit provider, but most will want you to provide your passport, bank details, an NOC from your sponsor (if relevant), bank reference, and also education certificates or examples of work depending on the activity to be covered,” says Bobker. She also cautions that even if you do all of this and fulfil the requirements expected of you, there is never actually any guarantee that a licence or permit will be given meaning it is important to do your research first.
This is doubly crucial as the application process is an investment in itself, although while the cost can vary significantly from application to application, the good news is that generally prices have decreased over the past few years.
As an example, Bobker says that you can expect to pay from around Dhs7,500 for the whole package (visa and permit) from TECOM unless you are being sponsored by a spouse or parents, in which case you could be looking at more like Dhs1,400 a year for a DED E-Trader licence. This licence covers a range of activities, but is only for Dubai residents who already have a residency visa.
“There are limitations, but this has allowed many people to work for themselves on a part-time basis, offering a range of services, at a very low cost. Note that there can be additional costs for multiple activities for many freelance permits,” explains Bobker.
Depending on what kind of licence you need, the timeframe from start to finish can vary. For example, the DED E-Trader licence can be set up almost instantly, but for a full freelance permit with a visa the whole process is likely to take a few weeks with variations between free zones.
Getting help
If you can’t face the rigmorale of going through the process alone, then there are also companies in the UAE to help with the process. Each free zone has different trade licence types available, and none of them have freelancer permits – so it can be tricky finding the correct one for your activity and budget, so make sure you do your research.
Amanda Perry from Vitality, a UAE company that helps female entrepreneurs, says: “This region is committed to making entrepreneurship accessible and every information that an aspiring freelancer needs is easily available online. However, I think what overwhelms people is not so much the process of setting up itself but the truly diverse range of offerings that you can get in the UAE. With over 50 different licensing bodies / authorities / free zones, offering similar services but with different prices, features, restrictions and even scaling opportunities, it is possible to commit what can end up a very expensive mistake. It’s important to find a licensing jurisdiction and a license that will grow with your plans.”
Things to bear in mind
Bobker’s advice is to make sure you do your due diligence before setting off on your own.
“Before making an application, do your homework and make sure you can get a freelance permit for the work you want to do. Find out the exact requirements as these vary and not being prepared will lead to delays,” she says. You’ll also have to sort out your own medical insurance, which can be costly.
Payment can be also a painful issue for many freelancers. When you don’t have a regular salary things can be tight and stressful. Especially when you’re not always paid on time, or ever. Chasing money can be a lengthy process, with some advising to stop producing the work until the bills are paid.
Another thing to consider is whether you’re self-motivated and self-sufficient enough to go it alone.
Also, it’s vital to get on top of accounting – it doesn’t come naturally to everyone but it’s so important.
Perry adds: “Although things seem scary right now, if you have an idea that lights a fire in your belly and motivates you to get out of bed every day there really is no better time. I won’t sugarcoat it, not having a desk your day revolves around and the familiarity of corporate life can seem as daunting as it is freeing.
However, our clients usually embarked on entrepreneurial journeys because of solid ideas and stayed for the flexibility, creative ownership and pride that comes from running your own business. We spend anywhere around a third of our lives at work – wouldn’t you want it to be something you care about, done on your own terms?”
So if you’re feeling excited and chomping at the bit to get your freelance visa sorted, with more options available, there’s certainly no time like the present.
Three top tips from Amanda Perry at Vitality
1 There are a lot of misconceptions about freelancing. And I think freelancers should never discount themselves: as a freelancer you are every bit as valuable as an agency. You are what you think you are, so ensure you value yourself which will help you ensure that your clients know your value. This belief needs to extend to your payment policy because cash flow is Queen for your business: always get 50 percent upfront, have 75 percent by midway and so on.
2 Ask yourself early on – do you want to create a lifestyle or a scalable business? Both of which may seem compatible but it is absolutely important to remember that making / saving money over the long term is not the only concern. Structuring in such a way that your business supports your personal wellbeing, happiness and growth without becoming a hindrance to you is way more essential than it may seem at the beginning. This is also why it’s important to validate your business model with a professional as other perspectives can provide solutions to challenges and co-create with new ideas.
3 Whether or not you need funding to get to start / sustain your business is also a hugely important concern. This is an important question because your cash flow should not hinder your vision. So think realistically and ask yourself if you can achieve a better result with funding or without.
