If you are an expat in the UAE, you should know what are the types of companies that exist in the country. Although some workers here rely on their knowledge about the private and public sectors, there are still other types of companies to discover. Knowing them will help you look for jobs in the future easier.
Additionally, you will know the proper laws, rules, and regulations depending on the type of company you are working for. This article will introduce you to the major information about Free Zone, UAE-Registered, and Government-Owned Companies in the country.
Companies in the UAE: Classification and Types
The most common terms that you will hear once you enter the corporate world are the private and public sectors. Private sectors are companies owned by businessmen and corporate individuals while public sectors are those that are operated by the government. In the UAE, the same types of sectors exist. However, you will also hear the terms “free zone”, “UAE-registered”, and “government-owned.”
If you don’t have ideas about them yet, it’s easy to understand them since they are connected to private and public sectors. Here are the things you should consider to understand them well.
1. Free Zone Companies in the UAE
Free zone companies are businesses that do not follow the UAE Labor Laws. They have their own set of regulations that they follow. If you are working in one of the companies in free zone areas, you won’t have to go to the UAE Ministry of Labour for complaints or other employment-related issues because you will have your own authority to handle such things.
There are also similarities when it comes to labor laws. For example, your employer or sponsor from a free zone company will be responsible for your residence visa application and will submit it to the free zone authority in the designated city. In Dubai, the Dubai Silicon Oasis Free Zone company can apply for your work permit and let the DSO Headquarters approve it. The same applies to the employees and companies of Dubai Internet City.
2. UAE-Registered Companies in the UAE
UAE-registered companies in the UAE are those owned by the locals. This means that the majority of the ownership of the company is owned by a citizen of the UAE. These companies follow the laws, rules, and regulations of the UAE Labor Law.
3. Government-Owned Companies in the UAE
There are companies in the UAE owned by the government such as healthcare centers, Emirates Airlines, and government offices. Government-owned companies can be easily distinguished from UAE-registered companies and other private sectors. Most expats working in the UAE are in the private sector.
Which of the three is better?
The question of which is better will depend on a lot of factors. These three types of companies have different salaries, compensation benefits, the flexibility of schedule, and work environment. If you will work in one of these companies, your criteria will tell which is better. Take note that free zone companies have different sets of rules.
As an expat, you should still be able to identify the establishments looking to hire expats in the UAE. You should know every type of company that exists so that you are aware of the differences. You won’t be ignorant in case you transfer from one kind of company to another.
It’s important that you are knowledgeable of everything that’s around you especially if it talks about employment. You will never know when you are going to find a better opportunity in free zone areas so it’s better to be aware of it as early as now. Don’t forget to share this with your family and friends as well!