One of the world’s most modern free trade zones is Dubai Airport Free Zone. Also known as DAFZ, it encourages diversification across the industries. That’s why many companies want to start a business in Dubai Airport Free Zone.
Dubai Airport Free Zone houses more than 2500 companies in 20+ business sectors. Over 25000 professionals are taking advantage of the world-class facilities in DAFZ. Foreign investors enjoy full ownership, and 100% of earnings.
DAFZ is providing the most lucrative investment opportunities to entrepreneurs for business setup in Dubai since its establishment in 1996. It is home to industries like eCommerce, telecommunications, pharmaceutical, IT, cosmetics, engineering and building materials, food and beverage, etc. With business sectors like aerospace and aviation, logistics and freight — DAFZ offers a unique solution to global business market.
Key takeaways of Dubai Airport Free Zone for business
The flexible business investment environment of Dubai Airport Free Zone is the reason of its efficient performance. DAFZ is among the flag-bearers of innovation in the United Arab Emirates. Here are the salient statistics that highlight the value of DAFZ in the leading free zones.
- Dubai Airport Free Zone is contributing about 4.7% to the GDP of Dubai.
- DAFZ hosts over 3,100 companies from more than 20 industries, employing 20,000+ professionals.
- Located next to Dubai International Airport, connecting to 220+ destinations via 150+ airlines.
- 100% foreign ownership, full profit repatriation, and 0% corporate tax on qualifying income.
- Dubai’s non-oil trade reached AED 2 trillion in 2023, with free zone trade growing 33% year-on-year.
- E-commerce licenses rising as free zones handle about 60% of Dubai’s total exports.
- FZCo is the most common structure, used by 25% electronics and 11% logistics/aviation companies in DAFZ.
- Digital reforms cut application times by ~60%, enabling licensing in 2–4 weeks.
- Office space determines visa quota, typically 1 visa per 8.33–12.5 sqm.
- Dubai free zones recorded AED 282 billion in trade in 2023 due to strong logistics hubs.
- Visa processing is fast, averaging AED 3,000–5,000 per visa, with full setup possible in under a month.
- Corporate tax applies at 9% for taxable income above AED 375,000.
- DAFZ’s strategic location boosts logistics efficiency and business travel convenience.
- High demand for prime office/warehouse space requires early leasing decisions.
- Dubai’s economy is expected to double in size by 2033, enhancing trade opportunities.
- DAFZ is entering the metaverse through METADAFZ after the announcement at GITEX 2022.
- Non-oil trade of DAFZ rose to AED 162 billion in 2021 with a 36% growth from 119 billion in 2020.
- DAFZ’s foreign trade shot to AED 164 billion in 2019 from 146 billion in 2018 (a 12.6% growth).
- The contribution of DAFZ to the Dubai trade was 10.7% in 2021.
Process to register a business in Dubai Airport Free Zone
This is the step-by-step procedure for registering the license for a business in Dubai Airport Free Zone.
- Choose business activity and license
- Decide right company structure
- Reserve trade name and prepare documentation
- Lease/rent office, premises, or facility
- Apply for visas and get final approvals
- Open bank account and launch operations
Now, we briefly look upon these steps of the business registration in Dubai Airport Free Zone.
Choose business activity and license
Picking the right license can position your business in DAFZA in a fast-expanding market. E-commerce licenses are popular here, as Dubai’s free zones now handle around 60% of the city’s total international exports. Your starting point is to select the corporate activity that matches your goals and the relevant license from these options.
- Trade license: for import, export, re-export, and distribution
- Service license: for consultancies, IT, media, and other services
- Industrial license: for light manufacturing and packaging
- General trading license: for businesses dealing in multiple product lines
Decide right company structure
These are some of the performing corporate structures in DAFZ for the businesses in Dubai.
- Freezone Company (FZCo): 1–50 shareholders; minimum share capital as low as AED 1
- Public Limited Company (PLC): for larger firms with unlimited shareholders, suitable for IPOs
- Branch Office: for existing foreign companies with no share capital requirements
The FZCo structure is the most common, especially among the 25% of DAFZ businesses involved in electronics and appliances. Also, the 11% companies operating in the logistics and aviation go for the FZCo structure. These sectors benefit the most when entrepreneurs open business in Dubai Airport Free Zone due to its proximity to the airport and integrated customs systems.
Reserve trade name and prepare documentation
After deciding the structure, reserve your company/trade name with the DAFZA regulator. Thanks to the digital reforms under Dubai’s D33 economic agenda, licensing processing times have sped up by around 60%. Create these legal documents, as you can register business in Dubai Airport Free Zone, and get licensing within 2–4 weeks.
- Licensing application
- Business plan
- Passport and visa copies of shareholders/directors
- NOC for initial approval from DAFZA
- For corporate shareholders: incorporation certificate, trade license, board resolution, UBO details
- Bank reference letters or statements
- Office tenancy agreement
Lease/rent office, premises, or facility
Every DAFZ company must rent/lease a space, with options ranging from the co-working desks to full warehouses. Your office size determines your visa quota, typically one visa per 8.33 to 12.5 sqm. This flexibility is why the zone attracts both small entrepreneurs and multinationals. In fact, DAFZ’s warehouses and logistics hubs helped Dubai free zones achieve AED 282 billion in trade in 2023.
- Smart offices for start-ups
- Industrial units with multi-story warehousing and cold storage
- Furnished 50-sqm offices that come with visa quotas and basic fit-out
Apply for visas and get final approvals
After securing your space and paying the license fee (starting from around AED 15,000), apply for visas for owners and employees.
- Immigration entry permit
- Medical test and Emirates ID registration
- Residency visa stamping
DAFZ’s integrated visa services allow investors to complete this within days, making it possible to have a fully operational business in under a month. Visa costs average AED 3,000–5,000 each. Given the 15% year-on-year growth in companies registered under Dubai’s free zones in 2023, competition for skilled workers is high, so securing your visas early is a strategic move.
Open bank account and launch operations
With your license and visas in place, open a UAE corporate bank account. Many banks have dedicated relationship managers for free zone companies, particularly in high-growth areas like e-commerce, logistics, and tech. These benefits, coupled with forecasts that Dubai’s economy will double in size by 2033, position DAFZ businesses to ride a wave of regional trade expansion. Once operational, your company benefits from these.
- 100% foreign ownership and full profit repatriation
- Zero customs duty on imports into the free zone
- VAT exemptions for goods re-exported outside the UAE
Importance of Dubai Airport Free Zone for UAE business
Dubai Airport Free Zone (DAFZ) has grown into one of the UAE’s most dynamic business hubs. DAFZ hosts over 3,100 companies from more than 20 industries and employing 20,000+ professionals. Its location right next to Dubai International Airport gives companies immediate access to over 220 destinations worldwide.
This makes DAFZ especially attractive for logistics, trading, and export-driven operations. Dubai Airport Free Zone comes with the 100% foreign ownership, full profit repatriation, and zero corporate tax. The appeal of DAFZA is clear from the word go for expatriate investors.
Benefits of business setup in Dubai Airport Free Zone
For your business, company formation in DAFZ can prove the best choice and offers these key advantages.
- Attracting international companies
- Strategic corporate location
- Easy business setup
- Comprehensive incorporation services
- Quality workplaces
- Wide range of activities
Next, we take a look on these rewards of the DAFZ.
Attracting international companies
Dubai Airport Free Zone provides the most attractive incentive packages, connectivity, and support to multinational companies from every continent. DAFZ keeps pace with international market requirements, economic policies, and developments across various global business sectors. This is why leading international companies such as Japanese ASAHI YUKIZAI, Irish Aerogen have their regional headquarter in DAFZ.
Strategic corporate location
Dubai Airport Free Zone is simply the best in the Gulf region in terms of its location. Foreign investors enjoy the salient rewards that DAFZ offers. Also, its closeness to the Dubai International Airport is a plus point.
- The central location of DAFZ provides quick access to key business hot spots in Dubai.
- It helps in the ease of operational functioning and making business more productive.
- Dubai International Airport makes business travel very easy, as more than 150 airlines connect 220 destinations across 6 continents.
- Businesses have easy access to logistics and cargo handling facilities catering to import and export needs.
Easy business setup
The simple business setup process of DAFZ supports entrepreneurs closely through each stage of their company formation. It includes stages like deciding the type of business you wish to run, choosing the appropriate license, to selecting and furnishing your office. These are the three simple steps you need to start a business in the free zone.
- Select your company Type
- Submit the required documents for initial review and approval
- Sign the lease, register your company and collect office keys
Comprehensive incorporation services
DAFZ offers a complete range of Dubai company incorporation and administrative services to its prospective and existing clients.
- Business setup (Licensing and registration) services
- Administrative support
- Employee and family sponsorship services
- IT and telecommunication services
- Housekeeping and building maintenance
- 24/7 security
Quality workplaces
DAFZ has a state-of-the-art business park that offers valuable facilities for offices depending upon the company preferences.
- Packages for new startups (Smart desk package, Business desk office package, Business enabled office package)
- Executive suite office packages (Bronze/Silver/Gold/Platinum packages)
- Customizable office plan (Mold work environment for your corporate identity and branding)
- Light industrial units (High quality, thermal insulated, purpose-built units to use as warehouse or for light production)
Wide activities range
This is one of the unique selling points of Dubai Airport Free Zone. Entrepreneurs are up for a treat as it permits a wide range of business activities. DAFZ offers four kinds of business licenses.
- Trade license
- Service license
- Industrial license
- General trading license
Calculate business start-up cost
Challenges of company setup in Dubai Airport Free Zone
Starting a business in the Dubai Airport Free Zone (DAFZ) offers many attractive plus points. From its strategic location and business-friendly environment to the wide range of facilities available. However, the endeavor can still present certain hardships.
- Navigating applicable regulations
- Finding suitable space
- Understanding tax structure
- Sourcing talent and managing visas
Going forward, we fleetingly discuss these hiccups while pursuing company incorporation in DAFZ.
Navigating applicable regulations
Even though DAFZ is known for its streamlined business setup, understanding the detailed legal and regulatory requirements can still be a challenge. Entrepreneurs often find that aligning their planned activities with the permitted categories in the free zone is more complex than expected. Some activities are restricted or require special permits, and securing the right approvals can take time.
From choosing the correct license type to completing the registration process, the steps require careful attention to avoid delays. Getting things right from the very start ensures smoother corporate operations in DAFZA and prevents costly mistakes later. That’s where the efficient mechanism of the Dubai Airport Free Zone comes handy for entrepreneurs.
Finding suitable space
Securing the right office or warehouse in DAFZ requires planning and quick decision-making. Availability can vary, and demand for prime locations remains high. Whether your business needs a modern office setup or a large warehouse, it’s essential to evaluate all options early on.
Lease agreements should be reviewed thoroughly to understand obligations before signing. For companies in DAFZA, location within the zone can significantly influence accessibility, efficiency, and operational convenience. Multiple spacious options turnout DAFZA an appropriate choice for many foreign investors having interest in the UAE.
Understanding tax structure
While DAFZ offers tax exemptions, there’s still a corporate tax of 9% on taxable income exceeding AED 375,000. It’s important to clearly understand how this applies to your business model and to ensure ongoing compliance with all tax reporting requirements. Maintaining accurate financial records, meeting deadlines, and staying informed about regulatory changes helps avoid unnecessary penalties and disruptions.
Sourcing talent and managing visas
Recruitment in Dubai offers access to a diverse talent pool, but finding candidates with the exact skills your business needs can be time-consuming. Once the right team is in place, the visa process for employees and their families must be handled with precision, as immigration procedures are strict and require proper documentation. A well-managed hiring and visa strategy ensures your team can operate efficiently without unexpected setbacks.
Incentives of foreign investment in DAFZ
Given below are the incentives for which foreign companies and expatriate entrepreneurs are investing in the DAFZ.
- 100% foreign company ownership
- No currency restriction
- 100% withdrawal of business capital and profits
- No employment restriction
DAFZA significantly slashes business set-up fee
In an announcement by Dubai Airport free Zone Authority (DAFZA), business setup cost is cut short by up to 65%. With it, the goal of DAFZA is to increase the free zone regional competitiveness and boost Foreign Direct Investment (FDI). Prior to the introduction of the less cost initiative by DAFZA, a series of comprehensive studies and polls were undertaken.
These are the reasons behind the initiative of cost decrease for business establishment by DAFZA.
- Allowing customers to increase earnings and operational profits.
- Achieving business growth and prosperity
- Driving local economic development
- Boosting sustainability of direct FDI
- Contributing positively towards Dubai GDP
The approach aims to approve Dubai’s economic competitiveness and strengthen its’ image on the world economic stage.
Dr. Mohammed Al Zarooni (Director General DAFZA)
Cost reduction in business setup and other corporate support services by DAZA is as follows.
- Registration, license, and staff visa fees for new investors have been reduced by 65%, 33%, and 20% respectively.
- Establishment card issuance fees have been cut by 17%.
- Board Resolution fees and Memorandum of Association issuance fee has been waived.
- Capital requirement has been cut by half i.e. from AED 1 million to AED 500,000 in order to facilitate the process of obtaining general trading license for new investors.
- Member companies have been allowed to structure as Limited Liability Free Zone Company (FZ-LLC). This is done to provide more flexibility in business setup, licensing and operation.
- License expiry fines have been waived in an effort to relax the terms of license renewal. The decision will help investors renew their expired license without paying any late renewal fines.
Reduction of taxes in DAFZ
- 100% corporate tax exemption
- Full personal income tax exemption
- 100% import & export tax exemption
- Full exemption on VAT
Calculate business start-up cost
KWS ME assists in new business establishment in DAFZA
Choosing the right free zone for your company in the UAE can feel overwhelming, given the many options available. However, with KWS Middle East, the process becomes simple and stress-free. Our mission is to ensure a smooth experience as you setup your company in Dubai Airport Free Zone.
Our experts take care of everything for you, from securing pre-approvals to helping you obtain your trade license. So that you can focus on growing your business. Get in touch with our expert advisors today to explore how KWS ME can help you successfully set up your business in DAFZA.
Conclusion
In case, you want to setup business in Dubai Airport Free Zone. You can seek professional advice for business advisors in the UAE. By taking guidance from these business consultants, you can remove the complexity from the company formation procedure.
You can connect with KWS Middle East to handle the overall process. Our experts will help you to greatly save your time. Consequently, you will make the most of your resources.
FAQs about business ecosystem in Dubai Airport Free Zone
These are the answers to the common questions about the corporate ecosystem of the Dubai Airport Free Zone (DAFZ).
What facilities does Dubai Airport Free Zone provide for companies?
Dubai Airport Free Zone (DAFZ) offers world-class infrastructure and facilities designed to suit different business sizes and models. Options include smart desks for startups, executive suites, customizable offices, light industrial units, and warehouses with advanced storage. Businesses also get access to IT services, 24/7 security, and administrative support.
Is there corporate tax in Dubai Airport Free Zone?
While DAFZ offers a favorable tax environment, a 9% corporate tax applies to taxable income above AED 375,000 as per UAE regulations. However, qualifying income within free zones can still benefit from exemptions, making it a competitive option compared to many global jurisdictions.
Which industries benefit most from DAFZ’s location?
DAFZ’s proximity to Dubai International Airport makes it especially beneficial for logistics, aviation, electronics, and trading companies. With direct access to 220+ global destinations and integrated cargo facilities, it is ideal for time-sensitive operations and high-volume export businesses.
What is the future growth outlook for businesses in DAFZ?
Dubai’s economy is forecast to double by 2033, driven by strong non-oil trade growth and free zone expansion. DAFZ’s strategic location, modern infrastructure, and business-friendly policies mean companies operating here can tap into rising demand and expanding international markets.
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