Suitable UAE free zones to establish your business

The opulence that exists here in the UAE — the wealth, the fancy cars, the splendid houses, the seven star hotels. Globally, a lot of people wonder how the United Arab Emirates has become so successful. Well, the UAE free zones are playing a huge role in driving the economy of this marvel.

One of the reasons the UAE has got worldwide recognition is because of its immense business opportunities. The ease of forming a company and doing business is boosting its standing in the MENA region. Especially, the UAE free zones provide loads of corporate prospects to everyone in a phenomenal way.

The first free trade zone in the United Arab Emirates came into being in 1985. Currently, the UAE is home to over 50 free zones. Whereas, there are over 20 free zones alone in Dubai.

UAE free zones: Perfect places for starting businesses

The UAE is drawing up both successful and newbie entrepreneurs to the country. It has become a major international center for commerce, industries, and business. Largely, this success story is due to the fact that there are many free zones across the seven emirates.

Initially, the aim of every special economic zone was to serve the needs of a particular industry. However, the free zones did update their plans to diversify their strategies for embracing the economic changes. As a result, many free zones are opening their doors to multiple industries, rather than serving a few sectors.

Free economic zone DMCC deserves separate mention. In 2015, DMCC was recognized globally as best free zone by fDi magazine. There are over 10,000 businesses registered in the free zone successfully conducting their operations.

In general each free zone in the UAE has distinctive features and has different requirements in terms of business regulations.

List of the UAE free zones for incorporating businesses

This is the Emirate wise classification of the free zones of the UAE.

• Free zones in Dubai
• Tax free zones in Abu Dhabi
• Free zones in Sharjah
• Tax free zones in Ajman
• Free trade zones in Ras Al Khaimah
• Tax free zones in Fujairah
• Free zones in Umm Al Quwain

Here we list down the UAE free zones under the seven Emirates.

Free zones in Dubai

These are the free trade zones in Dubai that are popular around the world.

• Dubai Multi Commodities Center (DMCC)
• Jebel Ali Free Zone (JAFZ)
• Dubai International Financial Centre (DIFC)
• Dubai Silicon Oasis (DSO)
• Dubai Airport Free Zone (DAFZ)
• Dubai Auto Zone (DAZ) — formerly known as Dubai Cars and Automotive Zone (DUCAMZ)
• Dubai Logistics City (DLC) — aka Dubai South Logistics District (DSLD)
• Dubai Internet City (DIC)
• Dubai South Free Zone (DSFZ) — formerly known as Dubai World Central
• Meydan Free Zone (MFZ)
• Dubai Outsource City (DOC) — formerly known as Dubai Outsource Zone (DOZ)
• Dubai Media City (DMC)
• IFZA Business Park — Free Zone by International Free Zone Authority
• Economic Zones World (EZW)
• Dubai Gold and Diamond Park (DGDP)
• Dubai Investment Park (DIP)
• Dubai International Academic City (DIAC)
• Dubai Healthcare City (DHCC)
• Dubai Design District (D3)
• National Industries Park (NIP) — formerly known as Dubai Techno Park (DTP)
• Dubai Maritime City (DMC)
• International Humanitarian City (IHC) — formerly known as Dubai Humanitarian City (DHC)
• Dubai World Trade Centre (DWTC)
• Dubai Science Park (DSP) — formerly known as Dubai Biotechnology & Research Park (DuBiotech)
• Dubai Knowledge Village (DKV)
• Dubai Production City (DPC) formerly known as International Media Production Zone (IMPZ)
• Dubai Studio City (DSC)
• Dubai Technology and Media Free Zone (DTMFZ)
• Dubai CommerCity (DCC)
• Expo City Dubai (ECD) — aka Dubai Expo City Free Zone (DECFZ)
• Dubai Flower Centre (DFC)
• Dubai Textile City (DTC) — aka Dubai Textile Village (DTV)
• Dubai Industrial Park (DIP) — aka Dubai Industrial City (DIC) or Dubai Wholesale City (DWC)
• DUQE — Dubai Queen Elizabeth II — Free zone on a cruise ship

Tax free zones in Abu Dhabi

These free zones in Abu Dhabi welcome the expatriate investors.

• Abu Dhabi Global Market (ADGM)
• Khalifa Economic Zone Abu Dhabi (KEZAD) — aka Khalifa Industrial Zone Abu Dhabi (KIZAD)
• Abu Dhabi Airports Free Zone (ADAFZ)
• Industrial City of Abu Dhabi (ICAD) — also known as ABU DHABI INDUSTRIAL CITY (ADIC)
• Masdar City Free Zone (MCFZ)
• Twofour54 Media Free Zone — Home to Yas Creative Hub
• Musaffah Industrial Zone (MIZ) — aka Musaffah Industrial City (MIC)
• Abu Dhabi Ports Free Zone (ADPFZ) — formerly known as Higher Corporation for Specialized Economic Zones (HCSEZ) or ZonesCorp
• Al Ain Industrial City (AAIC)
• Construction and Building Material Zone (CBMZ)

Free zones in Sharjah

These free trade zones in Sharjah are famous for company setup.

• Sharjah Airport International Free Zone (SAIF) — aka Sharjah International Airport Free Zone
• Hamriyah Free Zone (HMZ)
• Sharjah Research, Technology and Innovation Park (SRTIP)
• USA Regional Trade Center (USARTC) Free Zone
• Sharjah Media City (SMC) — aka Sharjah Media City Free Zone (SMFZ) or Shams
• Sharjah Healthcare City (SHCC)
• Sharjah Publishing City (SPC) — aka Sharjah Publishing City Free Zone (SPCFZ)
• Sharjah Communication Technologies — aka Free Zone (SCTFZ) or ComTech
• Sharjah Human Resources Development Free Zone (SHRD)

Tax free zones in Ajman

These free zones in Ajman are available as well.

• Ajman Free Zone (AMZ)
• Ajman Media City Free Zone (AMCFZ)
• Ajman NuVentures Centre Free Zone (ANCFZ)

Free trade zones in Ras Al Khaimah

You can choose from these tax free zones in Ras Al Khaimah also.

• Ras Al Khaimah Economic Zone (RAKEZ) — formerly known as Ras Al Khaimah Free Trade Zone (RAK FTZ)
• Ras Al Khaimah Media Free Zone (RAKMFZ)
• Ras Al Khaimah Digital Assets Oasis (RAK DAO)
• Ras Al Khaimah Maritime City (RAKMC) — aka Ras Al Khaimah Maritime City Free Zone (RAKMCFZ)

Tax free zones in Fujairah

These are the free zones in Fujairah.

• Fujairah Free Zone (FFZ)
• Fujairah Creative City (FCC)
• Fujairah Oil Industry Zone (FOIZ)

Free zones in Umm Al Quwain

These are the free zones available in Umm Al Quwain at the moment.

• Umm Al Quwain Free Trade Zone (UAQFTZ) formerly known as — Ahmed bin Rashid Port and Free Zone
• Umm Al Quwain Marine Industrial Park (UAQMIP)

Some leading UAE’s free trade zones for businesses

Let’s take a look at the well-known free trade zones in the UAE.

Dubai Multi Commodities Center (DMCC)

Home to thousands of successful businesses, DMCC is a leading free zone in Dubai for trading commodities such as gold, diamonds, metals, and tea as well as industrial materials. If you want to do business in commodity trading, company formation in DMCC is the perfect place for you where you can meet, partner or compete with the companies in your sector.

Jebel Ali Free Zone (JAFZA)

According to Khaleej times, Jafza contributes to over 50% of Dubai’s total exports. Business setup in Jafza is the perfect choice for your trading business as it is close to airport and Jebel Ali sea port. It has state of the art network of warehouses and IT and communication infrastructures.

Dubai Internet City (DIC)

Home to the popular global companies such as Microsoft, IBM and Dell, Dubai Internet City is the perfect place to setup tech business. Business setup in DIC will provide you with excellent business startup packages (incubators) as well as a great location which will help you expand in MENA region.

Benefits of UAE’s tax free zones for setting up companies

The UAE is creating an open corporate atmosphere that is favorable for growing entrepreneurship. Moreover, the special economic zones are encouraging the foreign companies to build a presence in the UAE. The following are the advantages of the UAE free zones for company formation.

• Full foreign ownership
• No local sponsor requirement
• Simple business setup
• Exemption from tax and duties
• World-class infrastructure
• 25 year space lease option
• Full repatriation of capital and profits
• Inexpensive basic services
• Long-term UAE visa availability
• Business bank account facility

Now, we briefly look upon these perks of the UAE free zones.

Full foreign ownership

UAE’s free zones provide a huge benefit of 100% foreign ownership to the international companies. Free trade zones in the UAE give foreign entities total autonomy in decision-making and flexibility in running corporate operations. International enterprises can full advantage of the market opportunities without involvement of the local partners.

No local sponsor requirement

Free zones in the UAE do not require any local sponsor for company incorporation. However, you can appoint local Emirati directors in the foreign company (if necessary). They can hep you in carrying out PRO activities for liaison with the UAE government and public departments.

Simple business setup

Free zones in the UAE provide easy company registration process with a few red tape obstacles. Less time and effort to start a firm leads to freeing up investors to concentrate on their main business operations. UAE’s free trade zones include special company incorporation offers to help the enterprises with the registration procedure.

Exemption from tax and duties

Businesses can greatly benefit from the UAE free zones in the terms of breaks from taxation. You have the right to tax holidays which can extend for 10 years after you setup company within free zones. Accordingly, it encourages FZ companies to optimize returns, reinvest earnings, and improve their worldwide competitiveness.

This tax-free environment promotes investment, economic growth, and entrepreneurship potential in the United Arab Emirates. Also, free zone enterprises get exemption from the import and export duties on international trade. However, there are transaction charges, that vary from free zone to free zone.

World-class infrastructure

UAE’s free zones provide top-notch infrastructure that promotes corporate success. It includes global connectivity on airways/waterways, cutting-edge logistics, contemporary workplace spaces, and fast internet. Businesses looking for a vibrant and encouraging environment find free zones appealing due to this infrastructure improving operational efficiency.

25 year space lease option

You can lease the warehouse and production facilities for a span of twenty five years. Many free zones have spaces available for manufacturing and assembling plants. Also, businesses in other verticals can get physical workspace on low rent in the free zones throughout the UAE.

Full repatriation of capital and profits

Free trade zones in the UAE empower foreign enterprises by facilitating 100% repatriation of capital and profits. Subsequently, it encourages international companies to set up branch offices in the United Arab Emirates. In turn, this supports economic expansion by creating a favorable atmosphere for foreign investment in the UAE.

Inexpensive basic services

You can benefit from various affordable basic services and amenities in the UAE free zones. For example, electricity, water, natural gas, etc.

Long-term UAE visa availability

Foreign investors can get the UAE visa for 3 years for themselves. Also, they can avail the same facility their staff. After the visa expiry, they can renew the visa without any hassle.

Business bank account facility

Foreign entrepreneurs beginning a new business in the UAE need to open a corporate bank account. Free zones of the UAE make it simple for expatriates in the country to create a banking account. Consequently, you can perform your daily corporate monetary activities with comfort and peace of mind.

Conclusion

On the whole, setting up a free zone company in the UAE is actually a pretty good deal. To ensure that you choose the proper platform for your business we recommend you consult professional consultants in the UAE. They enable you to learn more about every free zone available in the UAE.

For assistance in business setup in Dubai and across UAE, contact our consultants at KWS Middle East. You can call us at +971-80059763, or WhatsApp us on +971506964705 now. Or you send your email query at info@kwsme.com also.

FAQs about the free zones in the UAE

These are the answers to the frequently asked questions on the free zones in the UAE.

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