A Free Economic Zone in the United Arab Emirates is an autonomous territory where foreign nationals can register Free Zone Establishments (FZE) and Free Zone Companies (FZC). Foreigners can fully own them; there is no need to involve a local partner. A FZE can have a single shareholder, while a FZC has to have two or more shareholders.
Free Economic Zones (FEZs) in the UAE offer attractive business ecosystems, which makes them popular with business people from other countries and stimulates the growth of the country’s economy. The main advantages of FEZs are the opportunity to own 100% of your company even if you are a foreigner in the UAE (this opportunity is still unavailable to mainland companies working in certain business spheres) and guaranteed 50-year tax exemption. You’d have to pay no personal or corporate income tax if you register a company in a FEZ. You would also be exempted from all customs duties.
Each FEZ has its own independent Free Zone Administration that issues licenses and regulates business activities in the Zone. You can find several dozen FEZs in the UAE, such as Dubai, Umm Al Quwain, Sharjah, Abu Dhabi, Ajman, and other emirates. They can be divided into seaport, airport, and continental FEZs. Registering a company in one of the UAE FEZs can bring you severe competitive advantages.
Popular Free Zones in the UAE
Each FEZ is designed to cater to the needs of companies working in certain specific spheres of business. In other words, each Zone has its areas of specialization. Your choice of the Free Zone in the UAE largely depends on the license types you can acquire there. Below, we list the most popular FEZs in the UAE, dividing them by the spheres of business that they suit.
Trade
Jebel-Ali Free Zone (JAFZA) is one of the oldest FEZs in Dubai. You will find trading areas, modern exhibition halls, and office and warehouse premises with all the necessary facilities there. Besides, the Jebel Ali seaport is also part of the Zone.
Dubai Multi Commodities Center (DMCC) is a significant trade and commodity hub and one of the best free zones in Dubai. In DMCC, you can engage in more than 600 business activities, including energy, health care, education, construction, financial services, etc.
International Free Zone Authority (IFZA) is a comparatively young but dynamic FEZ in Dubai. It is located on the premises of Dubai Silicon Oasis. In addition to various types of business licenses, you can acquire a combined license for trade and service provision.
Gold and precious stones
Sharjah Airport International Free Zone (SAIF) is a Free Zone that offers perfect conditions to companies dealing in gold and jewelry. The Zone sits close to an international airport, solving logistics issues.
We must note that DMCC mentioned above would also suit gold and precious stone dealers. It is home to a significant diamond exchange, and you will also find secure vaults on the premises.
Air and sea shipment
Dubai South is a Free Zone located on the premises of Al Maktoum Airport. It has a favorable geographical position, which allows different logistic routes to be brought together. You will find a wide choice of manufacturing facilities and office space there. Besides, empty land plots are for sale/ rent.
Dubai Airport Free Zone (DAFZ) is next to Dubai International Airport. It offers direct access to the airport’s logistic infrastructure, fast customs clearance, and a flexible license system.
Jebel Ali Free Zone (JAFZA) mentioned above will also suit the purposes of the Abu Dhabi Airport Free Zone (ADAFZ) and KEZAD in Abu Dhabi.
Manufacturing
Ras Al Khaimah (RAK Free Trade Zone) offers infrastructural objects for different types of businesses. The Zone has numerous warehouses, heavy and light industry manufacturing facilities, and aircraft service areas.
Hamriyah Free Zone (HFTZ) is designed for the manufacturing sector. Its territory is over 20 km², and you can find various manufacturing and commercial facilities there.
Umm Al Quwain Free Trade Zone (UAQ FTZ) is an FEZ located in the emirate of Umm Al Quwain. A large spectrum of licenses is available, and many warehouse and manufacturing facilities are in the zone.
Information technologies
Dubai Silicon Oasis (DSO) is a promising Zone for startups, mobile technologies, software, telecommunications, and data processing companies. DSO offers terrific housing opportunities, trade and entertainment centers, green areas, and other infrastructure. Living and working in the Free Zone is very comfortable.
Dubai Internet City (DIC) is a large business center. It can serve multimedia, web design, telecommunications, e-commerce, and software development projects very well. Both giant international IT corporations and small companies are stationed in the Zone.
Meydan is a relatively young Free Zone in Dubai. You can engage in various business activities by registering a company there. The Zone boasts a unique feature: resident companies are entitled to rent office space anywhere in the UAE, which is not the case with any other FEZ in the country.
Education
Dubai Knowledge Park (DKP) is another Free Zone specializing in education and recruitment services. DKP offers a modern infrastructure for educational projects, conferences, and consultation. The Zone is especially popular with freelancers.
Dubai International Academic City (DAC) is a unique educational project. The Zone attracts highly qualified specialists who promote and develop science and education.
How should you go about choosing the most suitable FEZ in the UAE?
First, the sphere of business where you want to work is of utmost importance. Any business activities must be licensed in the UAE, and no Free Zone issues licenses of all types at a time. Second, you must decide how many business activities will be listed in your license. The more types of business activities are listed, the higher the license cost. Speaking about the price of the permit starts at 11,900 dirhams in Dubai Free Zones. Some FEZ in the UAE, however, offer less expensive ‘packaged’ business licenses that authorize the holder to engage in several types of business operations. Sharjah Media City, for instance, will issue a service license for 8,050 dirhams. A media and IT business license costs 11,743 dirhams.
You also have to consider the location and the available infrastructure when choosing the FEZ in the UAE. Are there enough warehouses in the Zone? Can you find comfortable office space there? Can you live on the premises of the Free Zone? What about the logistics? Can you re-domicile your company from some other jurisdiction to the FEZ?
UAE FEZs have different characteristics, and they offer various sets of services. If you would like to register a company in one of the FEZs in the UAE, you should apply for a professional consultation on the matter.
