Some 20 years ago, the Dubai government initiated Free Trade Zones in the country with the aim of capitalizing on the UAE market and transforming the economic structure. The Jebel Ali Free Trade Zone in Dubai was a pioneering step taken in 1985 by the government that changed industrial control throughout the UAE. Unlike other Emirates, Dubai heavily invited foreign investors and offered various incentives out of the way.

In recent years, this particular jurisdiction has been an important factor in diversifying the sense of the market and creating a benchmark for the nation’s enduring protocols. As a result, Dubai made a successful assumption in terms of the multiple Free Trade Zones that the city proposed and that made the other Emirates join the league as well. The scheme was such that each major business sector has its own jurisdiction, so that it can maximize the empowerment of each segregation. Apart from this, the benefits in terms of taxes, full ownership and fewer restrictions made it more attractive to entrepreneurs considering setting up a business in Dubai. In addition, the development bodies also made sure to create buy-in on the procedural aspects of setting up a Free Zone company. Whether it’s registering a business in a free zone in Dubai or deciding on a designated area for your type of business, the Dubai government has made things right by implementing easy-to-use online procedures.

Segregation in a Free Trade Zone Business Establishment:

• Free Zone Company

• Establishment of Free Trade Zone

• Branch / Company Branch

Some of the free trade zones in the United Arab Emirates are as follows:

• Jebel Ali Free Zone

• Dubai Multimodal Corridor

• Dubai Media City

• Dubai Internet City

• Dubai Airport Free Zone

• Dubai International Financial Center

• Dubai Silicon Oasis, Dubai Health City

• Dubai Research and Biotechnology Park

• Dubai Knowledge Village

• Dubai International Academic City

• International Humanitarian City

• Dubai outsourced area

• Dubai Maritime City

• Dubai Logistics City

• EnPark, Dubai Automobile and Car Zone

• Dubai Sports City, International Media Production Zone

• Dubai Studio City and Dubai Creative Clusters Authority

Pros and cons of a free trade zone

Various reports claim that it is the Free Trade Zone that helped Dubai become a commercial center of the UAE. With the escalation of foreign entities clamoring to establish a company and the increase in the number of company registrations in free zones in Dubai, there is every reason to believe so. But this region is also tied to a set of pros and cons. Keep reading!

Advantages:

• Removes the obligation to form a partnership with a UAE national.

• Provides full ownership, as investors can have 100% ownership of the company.

• Special consideration regarding appointments, investments and procedures.

• Freedom in the operations and movements of the company.

• Benefits in taxes, customs, currency control and more.

• Administrative services can be released through a single window system.

• No restrictions to participate in more than one activity.

Cons:

• Free Zone companies are restricted from carrying out any commercial activity within the country.

• These companies are only allowed to do business internationally; limits your opportunities for expansion.

• They are located mainly in the least close areas; however, transportation and connectivity are making things better.

While there are few limitations, the intensified attraction to the Free Zone continues. The Dubai government plans to introduce more such jurisdictions in the coming years.