The opulence that exists here in UAE, the wealth, the money, the fancy cars, the fancy houses, the five, six and seven star hotels. A lot of people around the globe wonder what’s going on here and wonder how this place got so successful.
Well, one of the reasons the UAE got successful and worldwide recognition is because of its immense business opportunities and ease of doing business.
UAE free zones play a huge role in driving UAE’s economy. The business opportunity that exists in UAE free zones is phenomenal.
The first free zone in the UAE emerged in 1985. Today in Dubai alone there are over 20 free zones. And in overall UAE, according to The National, there are 49 free zones. Each of them was established to serve needs of particular industry. Today free zones review their plans, embrace economic changes and digest their strategies. As a result several free zones open their doors to multiple industries although initially the main focus was on a few sectors.
Free economic zone DMCC deserves separate mention. In 2015, DMCC was recognized globally as best free zone by fDi magazine. There are over 10,000 businesses registered in the free zone successfully conducting their operations.
In general each free zone in the UAE has distinctive features and has different requirements in terms of business regulations.
Benefits 0f Setting Up A UAE Free Zone Company
Following are the benefits of free zone company formation in UAE, 100% foreign ownership: If you setup in a UAE free zone you have the right to completely own your company which is different to the rules that apply if you are operating outside a free trade zone.
Tax breaks: You also have the right to tax breaks which extend for in excess of 10 years after you setup within the zone.
100% repatriation of capital and profits: You are allowed to repatriate your foreign capital and profits completely.
100% free transfer of funds: there are no restrictions to the transfer of funds.
100% exemption of import and export duties: there are of course transaction charges and they vary from free zone to free zone.
Quicker Free zone company formation: Formation of free zone company is quicker and you do not need a local sponsor to form your company.
Easy recruitment procedures: The recruitment procedures are pretty simple and you can recruit people from anywhere in the world except from some restricted countries like Yemen, Egypt and so on where a security check is done in advance.
25 year lease options: You can lease warehouse and production facilities on a 25 year old lease. Areas are also available for production and assembling.
Benefit from inexpensive basic services: You will be able to benefit from inexpensive basic services such as water and electricity.
As mentioned before, many free zones in Dubai are specialists’ free zones like Dubai Airport free zone specialized in logistics related companies,
- Dubai Media City- advertising agencies and related businesses
- Dubai Investment Park –warehousing and industrial activities
- Dubai Silicon Oasis- for electronic industry
- Dubai Healthcare City- for healthcare related businesses
- Dubai Design District- specializes in fashion
- Jebel Ali Free Zone- oldest and the largest
- Dubai Humanitarian City – for social work (non-profit organizations)
Let’s take a look at the three most popular free zones in the UAE and the benefits they offer.
Dubai Multi Commodities center (DMCC) – for commodities trading
Home to thousands of successful businesses, DMCC is a leading free zone in Dubai for trading commodities such as gold, diamonds, metals, and tea as well as industrial materials. If you want to do business in commodity trading, company formation in DMCC is the perfect place for you where you can meet, partner or compete with the companies in your sector.
Jebel Ali Free Zone (Jafza) – opportunities for numerous businesses
According to Khaleej times, Jafza contributes to over 50% of Dubai’s total exports. Business setup in Jafza is the perfect choice for your trading business as it is close to airport and Jebel Ali sea port. It has state of the art network of warehouses and IT and communication infrastructures.
Dubai Internet City (DIC) – for IT and communications
Home to the popular global companies such as Microsoft, IBM and Dell, Dubai Internet City is the perfect place to setup tech business. Business setup in DIC will provide you with excellent business startup packages (incubators) as well as a great location which will help you expand in Mena region.
On the whole, setting up a free zone company in UAE is actually a pretty good deal.
To ensure that you choose the proper platform for your business we recommend you consult a professional in the UAE to learn more about every free zone available in the UAE.