The Effect of Free Zones on Dubai’s Economy

After transforming from a town surrounded by endless miles of desert, Dubai is now one of the world’s best business destinations for startups, investors, entrepreneurs and corporations.

A key factor behind this change has been the introduction and development of Free Zones by the government in Dubai and across the UAE. Free Trade Zones were created to stimulate the expanded economy growth of the country. By creating a favorable environment in these Free Zones and some great incentives for international businesses to come and work in the UAE, Dubai attracted thousands of companies from all around the world.

Simply put, a Free Zone is a separate business area that is located near a port or a significant trading hub and is not governed by the laws and regulations applied to resident companies in the UAE.  Its purpose is to enable the easy setup of businesses, which is an element that attracts foreign investors and businesses.

Each Free Zone in Dubai is subject to its own Free Zone authority. With over 22 designated Free Zones for sectors ranging from healthcare to biotechnology, Dubai has the highest number of Free Zones companies in the UAE. With such a large number of Free Zones operating in varied sectors, investors get to enjoy a range of benefits, including cost and infrastructural benefits.


The 4 main benefits when starting a business in one of the UAE Free Zones:

  • 100% foreign ownership
  • 100% repatriation of capital and profits
  • 100% import and export tax exemption
  • 100% exemption from income and corporate taxes
Foreign investors also play a vital role in boosting the benefits for the UAE economy. The main benefits include more job opportunities, competitive wages, knowledge of the latest technology, a more stable economy and a culture of excellence for Dubai.
In recent years, there has been remarkable growth in the UAE’s economy. The introduction of Free Zones has largely contributed to the success of Dubai’s economy and has lifted the UAE’s economy to be on top. Dubai is now one of the most preferred expat destinations for its high rate of growth, levels of safety and quality of life.
Europe Emirates Group are experts on the nuances and local laws and customs that surround enterprise in the UAE. We will match up your business requirements with the best use of a Free Zone license and/or local residential trade options, to ensure you hit the correct balance of tax efficiency and local market access.
Contact us now and be prepared to be surprised by how easily your specific requirements can be catered for by our professional team of experts.
UAE Setup Guide
Free Trade Zones
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