UAE Law: Can Full-Time Employees Start Their Own Business?
Dubai – Full-time employees in the UAE are permitted to establish their own businesses, provided they obtain a No Objection Certificate (NOC) from their current employer.
This legal framework allows individuals to become partners or shareholders in new or existing entities.
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For employees considering starting a business similar to their current job—such as an HR consultancy for those working in HR—caution is advised.
If the new venture competes directly with the employer, it may be viewed as a conflict of interest, especially if the employment contract includes a non-competition clause.
According to Article 10(1) of the Federal Decree Law No. 33 of 2021, employers can include provisions in contracts preventing employees from engaging in competing businesses after their employment ends.
However, if both parties agree in writing, this clause may not apply once the employee leaves.
Additionally, exemptions to non-competition clauses exist, such as compensation agreements or if the contract is terminated during a probationary period.
Employees are encouraged to consult the Ministry of Human Resources and Emiratisation for further clarity on these regulations.
This legal guidance provides a pathway for aspiring entrepreneurs while emphasizing the importance of adhering to contractual obligations.
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Khaleej Times
