An In-Depth Look at UAE Free Zones

Once a town surrounded by swathes of desert, Dubai is now arguably the world’s greatest business destination for start-ups, investors, entrepreneurs and corporations. Key to this transformation is the Emirati government’s commitment to introducing and developing UAE free zones. In this post, we’re going to delve a little deeper into what it means to do business offshore and the importance of free zones in the UAE economy.

What is a free zone in the UAE?

Unlike mainland, free zones are independent business areas that are often located near a port or business hub. Each free zone has separate legislation from the government rules and regulations that govern onshore or mainland companies in the UAE. Consequently, each UAE free zone has a separate free zone authority.

There are currently 45 free zones in the UAE, which focus on a particular sector. Dubai Healthcare City, for instance, caters to healthcare companies while DMCC is home to commodities trading and tech. Dubai has the highest number of free zones in the UAE, offering investors a whole host of benefits, including incentives regarding company costs and infrastructure.

The economic importance of free zones in Dubai

The authorities decided to create free zones in the UAE to promote the UAE’s economic growth. Free zones offer countless incentives for business set-up in each of their respective sectors, attracting foreign companies to come and operate in the UAE.

The Emirati economy has witnessed remarkable growth and the introduction of free zones has played an important role in elevating the nation’s status as an exceptional place to do business. As Dubai and the other Emirates have looked to diversify beyond the traditional oil and hydrocarbon sector, free zones have helped non-oil external trade growth.

free zone company registration in the uae

The benefits of UAE free zones

While each specific free zone has its own specific set of advantages, all free zones in the UAE have the following in common: they enable companies to do business seamlessly across borders. But beyond this undeniable plus, investors and entrepreneurs benefit from the following four benefits:

  • 100% foreign ownership.
  • 100% repatriation of capital and profits.
  • 100% import and export tax exemption.
  • 100% exemption from income and corporate taxes.

Free zones additionally provide registered companies with everything they need to make their business an international success, namely world-class infrastructure tailored to the sector in question, incredible office spaces, storage and warehousing, and premium connections.

what is free zone in uae

List of free trade zones in the UAE

A non-exhaustive list of the 45 UAE free zones includes:

  • DIFC free zone.
  • DMCC free zone.
  • Dubai Airport free zone.
  • Dubai Healthcare City free zone.
  • Dubai Maritime free zone.
  • Dubai Media Free Zone.
  • RAK ICC free zone.
  • Silicon Oasis free zone.

For a full list of free trade zones in the UAE, please see the United Arab Emirates Ministry of Economy webpage.

Are you interested in company registration in a UAE Free Zone?

Entrust your business set-up to Europe Emirates Group and benefit from our expertise in the minutiae of each and every free zone in the UAE. We will take a comprehensive look at your business requirements and find the best free zone for your company, striking the balance between access to local markets and tax efficiencyGet in touch with us today and start your journey to business success. 

Written by
Adrian Oton

Adrian Oton
CEO, Europe Emirates Group 

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