What Is a Free Zone? List of UAE Free Economic Zones
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Free economic zones are one of the United Arab Emirates' most attractive features for business. The UAE has dozens of them, most located in Dubai. As UAE free zones offer different conditions, choosing one requires considering many factors.
What is a free zone in the UAE?
A free economic zone is a designated area offering special conditions to entrepreneurs—local residents or, more commonly, foreigners. A free zone has a special status relative to the rest of the country. In the UAE, for example, these zones provide favorable tax, customs, and administrative conditions for business, manufacturing, and research.
Objectives of establishing free economic zones
Special zones are an important economic policy tool. Countries create them to attract foreign investment, increase exports, and develop infrastructure. This subsequently benefits the national economy and international relations.
Types of free zones
Free zones may be territorial, customs, functional, administrative, or financial and investment zones. Depending on their functions, incentives for foreign entrepreneurs, and integration into the national economy, functional special zones include:
- Trade and logistics zones. These are usually free zones located near major transport routes.
- Technology zones: technology parks, technopolises, and innovation zones. In technology-focused free zones, startups may receive support through investment opportunities and accelerator or incubator programs.
- Industrial zones: free production, export-production, import, and import-substitution zones. Such zones specialize in manufacturing particular products and offer production facilities, warehouses, and other premises for rent.
- Service zones: banking, insurance, financial, and preferential trade zones. Service free zones attract companies with favorable regimes, strong banking and commercial confidentiality, and simplified regulation.
Advantages of UAE free zones
The main advantages of free-zone registration for foreign businesses are:
- access to sales markets;
- a simplified company registration process;
- excellent infrastructure for business development;
- the option to use a coworking workplace, with no requirement for a separate office;
- no duties or customs fees and reduced tax rates;
- legal guarantees protecting investors' rights.
Which free zones operate in the UAE?
The UAE's first free zone was established in 1985. Jebel Ali Free Zone is located near one of the world's largest seaports. The port serves more than 150 shipping lines and handles over 19 million containers annually. Dubai's cargo airport and Al Maktoum International Airport are also nearby.
Today, the United Arab Emirates has more than 55 free zones across the country, most of them in Dubai. In the free economic zones of Ajman, Sharjah, Abu Dhabi, Dubai, and other emirates, it is possible to establish an FZE—a free zone establishment.
Some popular free zones in Dubai and other emirates:
| Свободная зона | Вид деятельности | Время регистрации, рабочих дней | Минимальный уставной капитал, дирхамов |
|---|---|---|---|
| HFTZ, Hamriya (Шарджа) | Все виды деятельности | 7-14 | 150 тыс. |
| SPC, Sharjah Publishing City Free Zone (Шарджа) | Коммерческая, общая торговая, профессиональная, электронная коммерция | 10-15 | 50 тыс. |
| SHAMS, Sharjah Media City (Шарджа) | Коммерческая, профессиональная, промышленная, e-commerce, фриланc, медиа, образовательная | 7-14 | Нет данных |
| MZF, Meydan (Дубай) | Торговая, производственная, профессиональная | 2-5 | 100 тыс. |
| DIC (Дубай) | Сервисная | 20-25 | 50 тыс. |
| DWTC (Дубай) | Торговая | 21-30 | 300 тыс. |
| DSO (Дубай) | Торговая, промышленная, сервисная | 15-25 | 100 тыс. |
| DTEC (Дубай) | Сервисная | 20-25 | 10 тыс. |
| DMCC (Дубай) | Торговая, сервисная | 20-25 | 50 тыс. |
| DWC (Дубай) | Промышленная, сервисная, торговая | 15-20 | 300 тыс. |
| JAFZA (Дубай) | Торговая, сервисная, производственная | 10-25 | Нет требований |
| DWC (Дубай) | Торговая, сервисная, производственная | 10-25 | 300 тыс. |
| ADGM (Абу-Даби) | Торговая, криптовалютная, сервисная, финансовая | 5 | 185 тыс. |
| Twofour54 (Абу-Даби) | Сервисная лицензия (B2B), фриланс. | 10-15 | Нет требований |
| UAQ FTZ (Умм-Аль-Кувейн) | Торговая, сервисная, промышленная, фриланс | 6-7 | 300 тыс. |
| AFZA (Аджман) | Торговая, промышленная, сервисная, e-commerce | 10-12 | 185 тыс. |
| AMC (Аджман) | Торговая, сервисная, промышленная, e-commerce | 5-7 | 100 тыс. |
| SPFZ (Шарджа) | Сервисная, промышленная, торговая | 2-5 | 50 тыс. |
| SAIF (Шарджа) | Сервисная, промышленная, торговая | 6-7 | 150 тыс. |
| FFZ (Фуджейра) | Торговая, сервисная, промышленная | 6-7 | 150 тыс. |
| RAKIA (Рас-Эль-Хайма) | Сервисная, торговая, промышленная | 7-10 | 100 тыс. |
| RAKEZ (Рас-Эль-Хайма) | Сервисная, промышленная, торговая | 2-4 | 100 тыс. |
| IFZA (Фуджейра) | Торговая, промышленная сервисная | 2-3 | 150 тыс. |
Business considerations and important details when selecting the most suitable UAE free zone:
- A free zone's corporate rules take precedence over UAE federal legal provisions and acts within its jurisdiction. Regulation may cover financial and tax matters, employment, dispute resolution, intellectual property rights, and more. It is worth choosing a zone with a well-developed legal framework. DIFC and ADGM, for example, apply English common law, enabling businesses to rely on extensive case law and dispute-resolution experience. An insufficiently developed regulatory framework creates numerous risks.
- Opening a bank account is easier for businesses operating in reputable free zones, which tend to cost more and impose strict audit and reporting requirements. Companies registered in Ajman and Sharjah may find it more difficult to open a corporate account.
The Level Consulting specialists can develop the optimal solution and select an option that meets all your needs. For more information about our services, contact us via the website chat or the phone numbers listed on the site.
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