Dubai attracts foreigners not only with premium property but also with favorable business conditions. Every year, in the metropolis, dozens of new companies appear. The most promising places for non-citizens to do business in Dubai are free zones. They were developed to draw foreign investments to the state. The areas provide entrepreneurs with numerous incentives. Our agency’s experts have reviewed the major peculiarities of the free zones and the advantages of opening companies in them.
Main Peculiarities of Free Zones
A free zone is a geographically designated territory with a special business regime. To date, there are about 50 free economic areas in the UAE. The majority of them are situated within Dubai’s territory. Their features include 100% foreign capital and the possibility of only foreign ownership.
Mainland and Free Zone
Any entrepreneur intending to relocate a business to the UAE selects its format and suitable type of jurisdiction. Businessmen without citizenship are eligible to open a company in Dubai’s free zone and in its mainland part. Each jurisdiction has several distinctive features.
Field of activity: Mainland organizations can operate and carry out commercial activity throughout the state and beyond. Free zone companies in Dubai are restricted to their area and international market.
Ownership: The mainland format requires the mandatory presence of the Emirates citizen among the establishment’s founders or investors. Dubai free zones’ policy allows foreigners to register a new company and own it independently, without attracting the assets of indigenous residents.
The Advantages of a Free Zone
The non-citizens can establish in Dubai free zones IT companies, medical institutions, fashion bureaus, or any other organizations. Every economic territory offers specific conditions for businessmen. In addition to the opportunity of foreign ownership, an entrepreneur gets a number of benefits by opening a business in such areas.
The businessmen receive numerous tax and duty breaks. Most companies located in the Dubai free zones don't pay the majority of corporate taxes and customs.
The free zone supposes a rather simple registration procedure. Opening a mainland business typically takes twice as long as the registration of a free zone organization.
Founders and staff of companies in free zones can receive the Emirates visa using the simplified system.
An entrepreneur can choose an economic territory for business in any industry. Each of the zones is developed for comfortable and beneficial entrepreneurial activity in certain directions, such as trade, IT, science, etc.
Sometimes, the concepts of “a free zone” and “an area with a freehold status” are used as synonyms. Actually, they carry diverse meanings. While a free zone is associated with business activity, a freehold area means a territory where foreigners can purchase property in full ownership.
The Sought-After Free Zones in the Metropolis
Dubai World Trade Center is considered the biggest complex for hosting trade fairs and prestigious conferences. This Dubai free trade zone is a supreme professional space for entrepreneurs whose activity is related to commerce, consulting, and human resources services.
Dubai Design District regularly holds seminars for designers, exclusive branded presentations, vivid fashion events, and artistic performances. Founded in 2013, to date, this free zone is one of the brightest areas in Dubai. The district has become a hub for innovative ideas and a community of trendsetters. It attracts entrepreneurs in the spheres of fashion, design, digital media, and architecture.
International Free Zone Authority supplies a number of licenses, including permission for trade and consulting services. Developed in Fujairah, in 2020, it relocated to Dubai.
Dubai Multi Commodities Centre is an actively growing Dubai free zone with a common area exceeding 200 hectares and over 15,000 business organizations. It specializes in diverse industries, such as commodity markets and commerce.
Jebel Ali Free Zone is the Dubai freezone located near the port. It offers commercial, industrial, and logistic licenses. Its annual turnover exceeded $169 billion in 2023.
Dubai Silicon Oasis is oriented towards establishments from the IT and telecommunications sectors. This Dubai tax-free zone’s offers accessibility to nearby markets and competitiveness.
Criteria for Selecting a Free Zone
Choosing a free zone often requires a responsible approach, consideration of diverse aspects, and certain knowledge. There are a range of major factors that must be considered before selecting a district.
An important criterion is the kind of license available in the free zone for business in Dubai. Most economic areas are specialized and offer permission for only two or three types of entrepreneurial activity.
The zone’s situation has a substantial impact on future logistics. It may be optimal to select an area located close to the main customers or the supply chain.
An entrepreneur should consider the size of expenses related to opening a business in Dubai’s free zone. The expenses differ depending on the district’s policy and cover the license price, office rents, additional fees, etc.
The zone’s reputation is an aspect that can’t be neglected. Numerous businessmen prefer to conduct entrepreneurial activities in renowned areas of Dubai, such as the International Free Zone, for future successful branding.
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