Free Zone jurisdictions in the United Arab Emirates (UAE) are specially designated areas that offer foreign investors and businesses unique advantages over other parts of the country. Free Zones are established to attract foreign investment, promote international trade and boost the country’s economic growth.
- They provide a range of benefits such as
- 100% foreign ownership
- 100% repatriation of capital and profits
- Zero taxes
- Duty-free import and export
- Easy company registration procedures.
There are over 45 Free Zones in the UAE, each catering to a specific industry or business sector such as technology, finance, logistics, media, healthcare, and education.
- Dubai International Financial Centre (DIFC)
- Jebel Ali Free Zone (JAFZA)
- Dubai Silicon Oasis (DSO), Dubai Healthcare City (DHCC)
- Dubai Media City (DMC)
- Abu Dhabi Global Market (ADGM)
- Ras AL Khamah Economic Zone (RAKEZ)
- Dubai World Trade Centre (DWTC)
- Sharjah Media City (Shams)
- Abu Dhabi Airports Free Zone (ADAFZ)
One of the main benefits of setting up a business in a Free Zone is the exemption from corporate and income tax, as well as customs duty on import and export. This means that businesses operating within a Free Zone can benefit from a more favorable tax regime and lower operating costs. Additionally, Free Zone companies can benefit from simplified registration and licensing procedures, which can significantly reduce the time and cost required to establish a business.
Another advantage of Free Zones is the ability to repatriate 100% of profits and capital without any restrictions, unlike mainland companies that are required to have a local sponsor or partner to operate. This makes Free Zones an attractive destination for foreign investors looking to establish a business in the UAE.
In terms of infrastructure, Free Zones offer world-class facilities and services such as state-of-the-art office spaces, warehouses, logistics centers, and communication networks. Additionally, Free Zones provide access to a large pool of skilled labor, as well as visa and sponsorship services for foreign employees.
Overall, Free Zones have become a key driver of economic growth and development in the UAE. They offer a business-friendly environment, favorable tax regimes, and world-class infrastructure, making them an attractive destination for foreign investors and businesses looking to expand their operations in the Middle East.
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