Many businesses shy away from investing in the UAE due to the compulsion of having a UAE national as a partner with 51% shares owned by them. Because of this, free zones have become a popular form of business registration in the UAE, where 100% foreign ownership is allowed. A free zone, or free trade zone, is an area with special tax-free status and low trade barriers where goods can be manufactured, imported/exported, handled, or reconfigured without paying any customs duty. Free trade zones are generally located in strategic geographical locations like national borders, international airports and major seaports, to maximise trading advantages.Establishing a business entity in one of the UAE's many Free trade zones (can be an attractive option for foreign investors. The main benefits for setting up a company in a free zone is that there is no UAE national shareholding required. All free zones in UAE offer the following incentives:
- 100% foreign ownership of the enterprises
- 100% cent import and export tax exemptions
- 100% repatriation of capital and profits
- No currency restrictions
- No corporate taxes
- No personal income taxes
The Freezones in UAE have been listed below
- Jebel Ali Free Zone (JAFZA)
- Dubai Airport Free Zone (DAFZA)
- Dubai International Financial Centre (DIFC)
- Dubai Healthcare City (DHCC)
- Dubai World Trade Center (DWTC)
- Dubai South Free Zone
- Dubai Knowledge Village
- Dubai Logistics City
- Dubai Media City (DMC)
- Dubai Silicon Oasis (DSO)
- Dubai Academic City
- Dubai Biotechnology & Research Park (DuBiotech)
- Dubai Car and Automotive City Free Zone (DUCAMZ)
- Dubai Design District
- Dubai Gold and Diamond Park
- Dubai Industrial City (DIC)
- Dubai International Academic City
- Dubai Internet City (DIC)
- Dubai Multi Commodities Centre or Jumeirah Lakes Towers Free Zone
- Dubai Outsource Zone
- Dubai Studio City
- Dubai Techno Park
- Dubai Technology and Media Free Zone
- International Media Production Zone
- Economic Zones World
- Dubai Flower Centre
- Meydan Free Zone
- International Humanitarian City
- Dubai Media City (DMC)
- Dubai Silicon Oasis (DSO)
- Dubai Academic City
- Abu Dhabi Airport Free Zone (ADAFZ)
- Abu Dhabi Global Markets (ADGM)
- ADPC - Khalifa Port and Industrial Zone (KPIZ)
- Industrial City of Abu Dhabi
- Higher Corporation for Specialized Economic Zones
- Masdar City Free Zone
- Twofour54
- Hamriyah Free Zone
- Sharjah Airport International Free Zone
- U.S.A. Regional Trade Center (USARTC) Free Zone
- Sharjah Publishing City Free Zone
- Sharjah Media City Free Zone (Shams)
- Ajman Free Zone
- Ajman Media City Free Zone
- Fujairah Free Zone
- Fujairah Creative City
- International Free Zone Authority (IFZA)
- Ras Al Khaimah Economic Zone (RAKEZ)
- RAK Maritime City Free Zone Authority (RMCFZA)
- Ras Al Khaimah Investment Authority
- Ras Al Khaimah Free Trade Zone
- Ras Al Khaimah Media Free Zone
- Umm Al Quwain Free Trade Zone (UAQFTZ)
Types of Licenses in Freezones
Business formation in UAE free zones is incomplete without procuring a business license. Following types of business licenses can be obtained by applicants in the UAE free zones:
- General Trading License
- Trading/Commercial License
- Service License
- Industrial License
- Warehousing License
- Manufacturing License