There are over forty Free Economic Zones (or simply Free Zones) in the United Arab Emirates and each of them offers some specific advantages to foreign entrepreneurs who register companies there. You can engage in tax-free business operations from a Free Zone in the UAE on the condition that you do not do any business with companies registered in the mainland UAE.
Even though the Free Zones are numerous in the country, none of them is universally suitable for everybody. Depending on the business sphere that you are involved in, some Free zones will meet your demands while some others will not. Certain types of business activities permitted in one Zone are not permitted in another zone. Certain types of advantages found in one Zone are not found in another Zone, and so on. Below we discuss some most popular Free Zones in the UAE and we hope that our brief descriptions will let you see which of them would suit your business purposes best.
Dubai airport Free Zone (DAFZA)
DAFZA is a dynamic business cluster located in the center of world trade. There you can acquire a premium business license and rent a fully equipped office. The office buildings look impressive indeed, which will contribute to improving the image of your company. Thanks to direct access to the busiest airport in the world, DAFZA is a gateway to the Middle East. Besides, Europe, the Indian subcontinent, and the Far East are easily reachable from there. Company can work in more than 20 different business spheres there.
SHAMS (Sharjah Media City)
SHAMS offers a wide spectrum of licenses. The Free Zone has been launched with an intention to boost the creativity of the media business in the country. SHAMS aims at becoming a world-level media center for innovative products and services and it embraces a wide spectrum of business events for those wishing to engage in entrepreneurial activities in the UAE. By registering a company in the Free Zone, a foreign entrepreneur can qualify for up to six resident visas at the best price. Neither charter capital nor personal presence in the UAE is required to set up a company in SHAMS.
Umm Al Quwain (UAQ FTZ)
Umm Al Quwain is the fastest growing Free Zone in the country. It offers inexpensive company registration packages for global investors. Many licenses are available in UAQ FTZ including trade, consulting, freelance, and other incenses. Registering a company in Umm Al Quwain will make especially good sense if yours is a small- or medium-size business because the company registration and maintenance costs are rather low there.
IFZA, Dubai
IFZA is one of the most innovative areas in Dubai. Created together with Dubai Silicon Oasis, IFZA is one of the fastest growing business centers that offers licenses at very low costs. A special characteristic of the Free Zone is the fact that companies registered there have a unique opportunity to combine commercial activities with professional and industrial activities under a single license. IFZA functions in compliance with Dubai Silicon Oasis regulations.
Meydan Free Zone
This is a new free trade zone in Dubai that allows carrying out more than 1,500 types of business activities. Global investors will also find an advanced business structure in the zone even though the prices are quite affordable. A favorable business environment makes Meydan a number one choice for foreign investors only starting their business operations in Dubai. You can acquire the following types of licenses in Meydan Free Zone:
- Electronic commerce;
- General trade;
- Management consultancy;
- Real estate consultancy;
- Advertisement and marketing;
- Technical service.
Dubai CommerCity
Dubai CommerCity is the first Free Trade Zone established exclusively to support electronic commerce companies in the UAE. Entrepreneurs from the Middle East, Europe, and South Asia actively register companies in the Zone. Large warehouses are readily available in DCC. Besides, you can find multiple offices of various sizes for rent there. Dubai CommerCity issues sis types of licenses. In addition to a joint license with the Department of Economic Development, you can acquire a trade, service, electronic commerce, industrial, or general license.
Dubai Multi-Commodity Center
DMCC is a well-established free zone where you can buy offices and enjoy a 50-year tax exemption. You should consider registering a company in the Zone if you are interested in trading in oil, natural gas, steel, gold, and raw materials.
Dubai South
Dubai South is the largest city complex in Dubai focused on aviation and logistics spheres. There you will find the largest airport in the world and a multimodal transportation infrastructure that connects air, land, and sea. Dubai South is a global transportation hub and the main contributor to the economic growth in the Emirate. It also contains EZDubai zone, which is an electronic commerce zone established with the purpose of expanding the number of business solutions available to transnational corporations as well as small businesses.
Dubai Science Park
Dubai Science Park is a unique free trade zone that promotes life science, innovations, and research. Besides, it caters to pharmaceutical companies and those engaged in environment protection activities and energy production. The infrastructure is tailored for small and large companies conducting scientific research. All sorts of innovations are welcome in Science Park and the flexible business environment found there contributes to research success.
Hamriyah Free Zone
Hamriyah is one of the oldest and the cheapest free zones in the UAE. It is located in Sharjah and it has turned into an industrial center in the emirate. The Free Zone administration issues various licenses at competitive prices. You can rent a land plot when registering a company in Hamriyah and the price will remain fixed for five years. The cost of establishing a company will depend on the size of your business and the types of infrastructure objects that you need. The following licenses are available:
- Commercial license (general trade and electronic commerce);
- Service license;
- Manufacturing license.
Above we have mentioned only a few Free Zones that you can find in the UAE. As we have pointed out at the beginning, their number exceeds forty and if you add several techno parks (that acts as Free Zones too) the total number will exceed fifty. Because the choice is so wide, you will need professional advice when deciding which of the UAE Free Zones to choose when opening a company in the country.