In exploring the unique business opportunities across the United Arab Emirates, it’s impossible to ignore the dynamic free zones, regions set up specifically for foreign trade and business.
Starting a business in a free zone offers a streamlined process with minimal paperwork and a relatively quick setup duration. Here are the key steps to guide you through establishing your business in a free zone:
Determine the Type of Legal Entity:
Firstly, you need to decide on the legal structure for your business. In a free zone, you typically have two options:
Free Zone Limited Liability Company (FZ LLC) or Free Zone Company (FZ Co.):
This structure allows multiple shareholders, whether individuals or corporate entities.
Free Zone Establishment (FZE):
This structure is suitable for single shareholders, either individuals or corporate entities.
It’s essential to note that not all free zones may offer both types of companies, so it’s crucial to check with individual free zone authorities regarding the available options.
Choose a Trade Name:
Selecting an appropriate trade name is a critical step. Ensure the name aligns with your business activities and complies with the naming guidelines set by the free zone authority.
Here are few useful links.
Registering the trade name Abu Dhabi portal
Trade name search – Abu Dhabi Government portal
Search trade name – Dubai Economy
Trade name inquiry – Sharjah Economic Development Department
Trade name issuance – Sharjah Economic Development Department
Apply for a Business License:
Once you have determined your legal entity and chosen a trade name, you can proceed to apply for a business license from the relevant free zone authority. The license type will depend on your business activities.
Choose an Office Space:
Selecting an office space within the free zone is another essential step. Most free zones offer a variety of office options to cater to different business needs. Consider factors such as size, location, and facilities when making your decision.
By following these steps diligently and working closely with the relevant free zone authority, you can efficiently set up your business in a free zone and commence operations smoothly.
As a global entrepreneur contemplating a business venture in UAE, it’s imperative to gain a solid understanding of the free zones.
These dedicated areas are designated by the UAE government to foster foreign investment with incentives such as 100% ownership, tax exemptions, and assistance in operations.
Let’s explore the rich variety of free zones available in different cities of UAE:
Abu Dhabi Free Zones.
If you’re an international entrepreneur considering business opportunities in the United Arab Emirates (UAE), you need to know about the benefits of setting up shop in Abu Dhabi Free Zones.
Why Abu Dhabi? Well, it’s one of the richest cities in the world and home to the Abu Dhabi National Oil Company (ADNOC)—one of the world’s leading energy producers. Positioned strategically in the heart of the UAE, Abu Dhabi offers unrivaled access to global markets and a business-friendly environment perfect for innovators and budding enterprises.
So, how can the Abu Dhabi Free Zones benefit your business? Let’s delve a bit further.
| Benefit | Explanation |
|---|---|
| Zero Taxes | The UAE’s wholesale absence of taxes is extended to businesses operating in free zones—that includes not just income and corporate taxes, but import and export tax exemptions too. |
| 100% Foreign Ownership | Unlike many countries that restrict foreign ownership, in UAE free zones you are allowed to maintain 100% ownership of your business. |
| Minimal Bureaucracy | Ease of setting up businesses, streamlined processes and provision for faster clearance of goods are impressive features of Abu Dhabi free zones. |
| Access to Regional and Global Markets | Proximity to key regional and global markets, combined with the presence of an international airport and world-class seaports, ensures seamless trade possibilities. |
Remember, each free zone in Abu Dhabi—whether it’s Khalifa Industrial Zone or the twofour54 Media and Entertainment Free Zone—offers unique advantages based on the specific needs of the businesses they cater to.
| Free Zone | Description |
|---|---|
| Abu Dhabi Global Market (ADGM) | An international financial center and free zone, offering a wide range of financial and professional services to businesses operating in various sectors. |
| Khalifa Industrial Zone Abu Dhabi (KIZAD) | A thriving industrial zone offering world-class infrastructure and facilities for manufacturing, logistics, trade, and other industrial activities. |
| twofour54 Abu Dhabi | A media free zone fostering the growth of the media and entertainment industry, providing state-of-the-art infrastructure and support services for companies in this sector. |
| Abu Dhabi Airport Free Zone (ADAFZ) | Strategically located near Abu Dhabi International Airport, ADAFZ provides a business-friendly environment for companies engaged in aviation, logistics, and related industries. |
| Masdar City | A sustainable urban development that serves as a hub for clean technology and renewable energy companies, offering a conducive environment for innovation and collaboration. |
| Abu Dhabi Ports Company (ADPC) | While not a traditional free zone, Abu Dhabi Ports Company manages various ports and industrial zones, providing logistical support and infrastructure for businesses in Abu Dhabi. |
Dubai Free Zones.
Considered the epicenter of free trade and commerce in the Middle East, Dubai is a thriving hub for businesses looking to expand globally.
The city is distinguished by its numerous Free Zones, each designed to cater to specific industry sectors, and offers modern business opportunities in a robust, stable, and low-tax environment.
One of the most prominent Free Zones in Dubai is the Dubai Airport Free Zone (DAFZ).
This premier free-zone destination is strategically located adjacent to Dubai International Airport, and offers state-of-the-art infrastructure, world-class facilities, and a broad spectrum of services.
Jebel Ali Free Zone (JAFZA), the oldest and one of the largest free zones in the UAE. Offering numerous growth opportunities to companies of all sizes, JAFZA is well-positioned to facilitate businesses’ access to international markets.
Each Free Zone in Dubai provides a unique set of services and benefits. From 100% foreign ownership, tax-free profits to progressive policies and a vibrant commercial community, the Free Zones in Dubai have undoubtedly created favorable conditions for businesses to grow and prosper.
As a global entrepreneur, extending your business activities to Dubai’s Free Zones is an excellent choice – a step towards remarkable growth and exceptional returns.
| Free Zone | Description |
|---|---|
| Dubai Commer City (DCC) free zone | A specialized free zone dedicated to e-commerce and trade, providing comprehensive services for online businesses. |
| Dubai Internet City | A vibrant community and business hub for technology companies and startups in the Middle East, offering state-of-the-art infrastructure and support services. |
| Dubai Media City | A hub for media and advertising firms, fostering creativity and innovation in the region’s media industry through a collaborative environment. |
| Dubai Production City | Formerly known as International Media Production Zone (IMPZ), it is a hub for media production and related businesses, providing infrastructure and support services. |
| Dubai Studio City | A specialized free zone catering to the needs of the film, TV, radio, and music production industries, offering purpose-built facilities and a conducive environment. |
| Dubai Outsource City | Designed to support the outsourcing industry, it offers a conducive environment for companies providing outsourcing services across various sectors. |
| Dubai Knowledge Park | A hub for education, training, and human resource development, offering specialized facilities and infrastructure for academic institutions and corporate training centers. |
| Dubai International Academic City | The largest academic free zone in the world, providing a home for universities, colleges, and research centers, fostering academic excellence and collaboration. |
| Dubai Science Park | A free zone dedicated to the science and healthcare sectors, offering a collaborative ecosystem for companies involved in research, development, and innovation. |
| Dubai Design District | A vibrant community dedicated to design and creativity, providing a platform for designers, artists, and creative professionals to collaborate and showcase their talents. |
| Dubai Multi Commodities Centre (DMCC) | A leading trade and business hub, home to over 17,000 companies across various sectors, offering world-class infrastructure and business support services. |
| Jumeirah Lakes Towers (now part of DMCC) | A mixed-use development comprising residential and commercial towers, now operated under the DMCC authority, offering a dynamic business environment. |
| Jebel Ali Free Zone (Jebel Ali Free Zone Authority) | One of the largest and oldest free zones in Dubai, offering a strategic location, state-of-the-art infrastructure, and streamlined business setup processes for international trade. |
| Dubai Airport Free Zone (Dubai Airport Free Zone Authority) | Strategically located near Dubai International Airport, it provides a business-friendly environment for companies engaged in aviation, logistics, and related industries. |
| Dubai Silicon Oasis (Dubai Silicon Oasis Authority) | A technology park that facilitates the growth of the ICT industry in Dubai, offering a mix of residential and commercial facilities along with advanced infrastructure. |
| Dubai HealthCare City (Dubai Healthcare City Authority) | A healthcare free zone comprising hospitals, clinics, and medical education institutions, dedicated to advancing healthcare services, research, and education in the region. |
| International Humanitarian City | A hub for humanitarian aid and relief organizations, providing logistical support and infrastructure for emergency response operations and humanitarian initiatives. |
| Dubai Maritime City | A specialized maritime cluster providing infrastructure and services for maritime businesses, including ship repair, manufacturing, and marine services. |
| Gold and Diamond Park | A hub for the gold and diamond trade, offering a wide range of retail and wholesale outlets along with manufacturing facilities for jewelry and precious metals. |
| Dubai South | A master-planned city designed to support various industries, including aviation, logistics, commercial, residential, and leisure, offering integrated facilities and services. |
| Dubai International Financial Centre (DIFC) | A leading financial hub in the Middle East, Africa, and South Asia (MEASA) region, providing a platform for financial institutions, fintech firms, and professional services companies. |
| Meydan | A multi-purpose development known for its iconic horse racing track, offering residential, commercial, and leisure facilities along with hospitality and entertainment options. |
| National Industries Park | A dedicated industrial zone providing infrastructure and services for manufacturing and light industries, promoting industrial development and economic diversification. |
Sharjah Free Zones.
With updated infrastructure and a strategic geographic location, Sharjah Media City (Shams) is recognized as a rapidly progressing free zone in Sharjah.
Offering a broad spectrum of business activities along with cost-efficient incorporation packages, Shams has become the ultimate hub for entrepreneurs globally.
Located in the heart of the city, Hamriyah Free Zone (HFZA) is Sharjah’s second free zone.
This free zone offers its investors world-class facilities combined with an excellent sea port and transport links which makes it an attractive option for businesses looking to establish their presence in the region.
Combining state-of-the-art facilities with a range of incentives and benefits, Sharjah’s free zones are attractive magnets for international businesses.
These zones have flourished and contributed significantly to the Emirate’s economy.
| Free Zone | Description |
|---|---|
| Sharjah Airport International Free Zone | One of the oldest and largest free zones in the UAE, offering a strategic location near Sharjah International Airport, with state-of-the-art infrastructure and business support services. |
| Hamriyah Free Zone | A leading industrial and commercial hub in the region, providing facilities and services for various industries, including manufacturing, logistics, and trading, with a strategic location near Hamriyah Port. |
| Sharjah Media City – Shams (Free Zone) | A specialized free zone dedicated to the media and creative industries, providing a platform for startups, freelancers, and established companies in media, broadcasting, advertising, and related sectors. |
Ras Al Khaimah Free Zones.
As you step into the exciting world of international entrepreneurship, Ras Al Khaimah Economic Zone (RAKEZ) might just be your go-to hub.
Situated at the northernmost part of the UAE, Ras Al Khaimah offers not just panoramic landscapes but also fertile ground for your business dreams.
Established through a merger of two major free zones, RAKEZ has cultivated a reputation as a world-class business hub.
Along with your business, you can expect a supportive infrastructure, customized solutions, and a simple, efficient setup process.
For global entrepreneurs looking at setting up base in the Middle East, you will find RAKEZ to be a platform that fuels growth and nurtures success.
One of the key features of this Free Zone is the wide range of business verticals it accommodates. From freelancers and startups to SMEs and industrial giants, RAKEZ has got you covered.
In fact, as per 2019 records, RAKEZ is home to over 15,000 multinational companies from over a hundred countries. The number speaks of its dynamic global appeal.
| Sector | No. of Companies |
|---|---|
| Trading | 5512 |
| Services | 4217 |
| Industrial | 2071 |
| Tourism | 411 |
Now, business aside, Ras Al Khaimah also provides an enjoyable living experience for you and your employees.
The city is known for its fascinating culture, luxurious resorts, and adventure activities. Moreover, being just 45 minutes away from Dubai, the global city is just a car ride away. It’s hard to ignore this compelling blend of business and lifestyle promise.
Therefore, as a global entrepreneur eyeing the Middle East, RAKEZ brings to you a concert of opportunities. You are not just setting up a business, you are building a future.
| Free Zone | Description |
|---|---|
| Ras Al Khaimah Economic Zone (RAKEZ) | A leading economic zone offering a wide range of facilities and services for businesses, including industrial, commercial, and educational sectors, located in Ras Al Khaimah. |
| RAK Digital Assets Oasis | A newly established free zone focusing on digital assets and blockchain technology, aiming to foster innovation and growth in the digital economy, located in Ras Al Khaimah. |
Ajman Free Zones.
If you’re searching for a blend of affordability and strategic location, then set your sights on the Ajman Free Zone (AFZ).
Ajman Free Zone’s affordable licensing options – including commercial, service, and e-commerce – make it particularly attractive for startups.
Additionally, businesses have access to modern infrastructure and office solutions that ease the operational processes, thereby providing a launchpad for global entrepreneurs.
A crucial advantage of AFZ is its geographic positioning. Being situated around Ajman’s harbor, it’s not only convenient for import and export companies but also offers easy access to two international airports and four ports.
Hence, it is an ideal hub for businesses that depend on efficient logistics and transportation.
So, if you’re an entrepreneur looking for an economical and well-situated Free Zone in the UAE, Ajman might just be the right fit for you.
| Free Zone | Description |
|---|---|
| Ajman Free Zone (Ajman Free Zone Authority) | A dynamic free zone providing a conducive environment for businesses across various industries, offering state-of-the-art infrastructure and business support services, located in Ajman. |
| Ajman Media Free Zone | A free zone dedicated to the media industry, expected to provide specialized facilities and services for media companies and professionals, located in Ajman. |
Umm Al Quwain Free Zones.
| Free Zone | Description |
|---|---|
| Umm Al Quwain Free Trade Zone (Umm Al Quwain Free Trade Zone Authority) | A comprehensive free trade zone offering competitive advantages for businesses, including tax exemptions, simplified procedures, and strategic location, located in Umm Al Quwain. |
Fujairah Free Zones.
| Free Zone | Description |
|---|---|
| Fujairah Free Zone Authority | A well-established free zone providing a wide range of business solutions and facilities for industries such as trading, manufacturing, and logistics, located in Fujairah. |
| International Free Zone Authority (IFZA) | A leading free zone offering flexible business solutions and a wide range of services for companies across various sectors, located in Fujairah. |
| Creative City | A specialized free zone focusing on the media, events, consulting, and technology industries, providing a supportive environment for creative businesses, located in Fujairah. |
Final Words.
As we wrap up our exploration of free zones in UAE, it’s evident that the United Arab Emirates offers a wealth of opportunities for global entrepreneurs. From the glistening skyscrapers of Abu Dhabi to the bustling trade centres of Dubai and the historic city of Sharjah,
