Dubai Free Zones
Dubai Business - Dubai Free Zones by Dubai City Guide Summer 2008
Setting up a business in one of Dubai’s several free trade zones is an appealing choice for most foreign investors. Free zones are highly beneficial for the entire country’s economy and since foreigners are allowed to fully own the companies they set-up, most expatriate investors prefer to establish their businesses in free zones. A large number of businesses and direct investments in free zones have contributed heavily to the net non-oil income in Dubai.
Each free zone is governed by its own Free zone Authority (FZA) and this authority is solely responsible for issuing business licences and helping the investors establish themselves. Free zones are marked by the business scope in its companies. For example, the Jebel Ali Free Zone is among the world’s largest export and re-export hubs, while Dubai Media City is reserved exclusively for the media and publishing industry businesses.
The best benefits of setting up a free zone business includes what the owner is entitled to, such as:
• 100% foreign ownership, import and export tax exemptions and capital and profit repatriation
• 15-year tax-free guarantee on corporate income, regardless of regulation changes
• No taxes on personal income
• Unlimited energy supply
• Staff recruitment assistance and support services such as sponsorship and housing
Business formation types allowed in free zones include Free Zone Establishment (FZE), Free Zone Company (FZCO) and branches or representative offices of international corporations and organisations.
The procedure for setting up a business in a free trade zone is generally quite direct and easy. The investors will have to forward a project plan, showing the activities and scope of the business, as well as any environment and safety issues that need to be addressed as part of the business.
Currently established and operational Dubai free zones are given below.
• Dubai Airport Free Zone
• Dubai Maritime City
• Dubai Internet City (DIC)
• Dubai Health Care City
• Dubai Media City (DMC)
• Dubai Logistics City (DLC)
• Dubai Gold & Diamond Park
• Jebel Ali Free Zone
• Dubai Knowledge Village (KV)
Several other free zones are being constructed at present and will be fully operational within a year or two:
• Dubai Aid City
• Dubai Silicon Oasis
• Dubai Cars and Automotive Zone (DUCAMZ)
• Dubai Auto Parts Zone
• Dubai Textile City
• Dubai Techno Park
• Dubai Flower Center FZ
• Dubai Studio City FZ
• Building Material Zone (BMZ)
• Dubai Outsource Zone FZ
• Dubai Biotechnology and Research Park
