Free zones are ideal locations for conducting business in the UAE.
What is a free zone?
A free zone is an area within a country (a seaport, airport, warehouse, or any designated area) with clearly defined borders, regarded as being outside the country's customs territory. It has special tax, customs and import laws, with attractive incentives for companies to set up operations.
Free zones allow companies to do business freely and efficiently within the laws of the free zone authority that governs it.
Why locate in a free zone?
In the UAE, free zones act as a central business hub for companies to do business all over the world. A large percentage of new foreign investment in the UAE takes place in the free zones.
One reason for this is that foreigners can own 100 per cent of the equity in a company that is established in a free zone, and setting up the company can be done without a local partner.
Companies that operate in free zones have complete control of their own operations. Companies operating in the UAE outside the free zones are subject to the UAE Commercial Companies Law, which dictates national ownership of at least 51 per cent of the company.
While the UAE does not have corporate or income tax, being in a free zone insulates companies against the implementation of tax, as the UAE government has guaranteed that if it imposes corporate tax, companies established in free zones will be exempt for a period of up to 50 years.
Another advantage to being in a UAE free zone is that the UAE currency, the dirham, is not subject to exchange control regulations. Companies have the freedom to transfer profits out of the country without currency restrictions.
KNOW YOUR ZONE
Free zones operating in the UAE, including those under development
- Dubai Airport Free Zone
- Jebel Ali Free Zone
- Hamriyah Free Zone
- Sharjah Airport International Free Zone
- Ras Al Khaimah FTZ
- Dubai Internet City
- Dubai Media City (right)
- Abu Dhabi Ports Company
- Abu Dhabi Airport Free Zone
- Ahmad Bin Rashid Free Zone, Umm Al Quwain
- Ajman Free Zone
- Dubai Auto Zone
- Dubai Biotechnology and Research Park
- Dubai Flower Centre
- Dubai Gold and Diamond Park
- Dubai Healthcare City
- Dubai International Financial Centre
- Dubai Knowledge Village
- Dubai Logistics City
- Dubai Maritime City
- Dubai Multi Commodity Centre
- Dubai Outsource Zone
- Dubai Silicon Oasis
- Dubai Studio City
- Fujairah Free Zone
- Industrial City of Abu Dhabi HCSEZ
- International Media Production Zone
- International Humanitarian City
- Techno Park
- Dubai Academic City
Dubai Auto Parts City
- Dubai Building Materials Zone
- Dubai Carpet FZ
- Dubai Cars and Automotive Zone
- Dubai Design Centre
- Dubai Energy City
- Dubai Textile City
- Heavy Equipment and Trucks Zone
