A complete guide to free zones in Dubai
- What is a Free Zone in Dubai?
- Why You Should Set up a Business in Dubai Free Zone
- List of Free Zones
- FAQs
Dubai is one of the Middle East’s most lucrative and investor-friendly destinations. Its proximity and easy access to Asia and other countries make it an ideal investment hub. Several free zones in Dubai offer facilities for businesses to grow. As a result, Dubai has become a haven for budding startups and established multinationals. Let’s find out more about these Dubai free zones and what they have to offer.
WHAT IS A FREE ZONE IN DUBAI?
Essentially, free zones or free trade zones in Dubai are business zones where companies operating in them are exempt from all types of taxation, such as Value-Added Tax (VAT), Income Tax, Corporate Tax and Customs. Business owners in the free zone areas in Dubai have 100% ownership of the business.
These zones aim to encourage foreign investment and promote economic activity in the city. Dubai was the first emirate to introduce the free zone model in the UAE.
Why set up a business in any of the free trade zones in Dubai?
There are many advantages of setting up a business in a Dubai free zone. One of the biggest is 100% business ownership and full tax exemption. Tax exemption in the UAE is ideal for foreign companies and business owners who want to utilise the country for regional manufacturing or as a distribution base.
The 100% ownership and full tax exemption in these dedicated economic zones in Dubai provide a lucrative investment opportunity for business owners.
Business owners must be mindful that having the right licences and approvals is necessary to register for VAT in the UAE successfully. The prerequisites of registering a company in a Dubai free zone include:
- Determining the type of legal entity
- Choosing a trade name
- Applying for a business licence
- Renting or buying an office
- Obtaining other pre-approvals
LIST OF FREE ZONES IN DUBAI
Are you wondering how many free zones there are in Dubai? Currently, there are over 25 free zones in the emirate, each catering to specific sectors and industries. According to the official UAE government website, they are divided into different categories. Here’s a quick look at the list of free zones in Dubai.
1. Dubai Creative Clusters Authority (DCCA)
The DCCA, now known as the Dubai Development Authority, mandates the development of creative and knowledge-based industries in the city.
Top free zone areas in Dubai under the DCCA include:
- Dubai Internet City
- Dubai Media City
- Dubai Production City
- Dubai Studio City
- Dubai Outsource City
- Dubai Knowledge Park
- Dubai International Academic City
- Dubai Science Park
- Dubai Design District (d3)
2. Dubai Multi Commodities Centre Authority (DMCC)
Established in 2002, the DMCC Authority is the hub for global commodities trade. The free zones area in Dubai listed under DMCC include:
- Jumeirah Lakes Towers
3. Other Dubai Free Zones
These Dubai free trade zones deal with a variety of industries that range from gold and jewellery to health care and manufacturing:
- Jebel Ali Free Zone Authority (JAFZA)
- Dubai Airport Free Zone Authority (DAFZA)
- DAFZA Industrial Park
- Dubai Silicon Oasis
- Dubai Healthcare City
- International Humanitarian City
- Dubai World Trade Centre
- Dubai Maritime City
- Gold and Diamond Park
- Dubai South
- Dubai Outsource City
- Dubai International Financial Centre
- Meydan Free Zone
- National Industries Park (TechnoPark)
- Dubai Commercity (DCC Free Zone)
- Dubai Expo City
- Dubai Auto Zone
There you have it – a complete list of free zone areas in Dubai.
FAQS ABOUT DUBAI FREE ZONES
WHAT IS DUBAI COMMERCITY?
Dubai Commercity, or DCC free zone, is the first e-commerce hub in the Middle East Africa and South Asia (MEASA) region. Spread across 2.1 million square feet, Dubai CommerCity is a purpose-built development that caters to the budding e-commerce industry. This particular Dubai free zone is divided into three clusters: The Business Cluster, Logistics Cluster and Social Cluster.
DO I NEED A PARTNER TO SET UP A BUSINESS IN THE DUBAI FREE ZONE?
No, the biggest benefit of investing in the Dubai free zone is that you are not required to form a partnership. Investors get 100% ownership of their business. Here’s everything you need to know about the requirements for opening a business in Dubai free zones.
HOW MUCH DOES IT COST TO INVEST IN A DUBAI FREE ZONE?
Free zones offer exclusive packages to help business owners. Setting up a business in Dubai depends on several factors, but free zones cost considerably less. For assistance, contact companies like Creative Zone, Start Any Business, Make My Firm or other business setup consultants in Dubai.
WHAT IS THE DIFFERENCE BETWEEN FREEHOLD AND FREE ZONE IN DUBAI?
Free zones should not be confused with freehold areas in Dubai. There are differences between free zones and freehold properties in Dubai. Freehold properties in Dubai offer non-GCC residents 100% ownership of land or property. Once a buyer has purchased any freehold property, they can sell, lease or live on it. On the other hand, Dubai free zone is exclusively for business and usually does not include residential units.
That concludes our quick guide. We hope you now understand what a free zone is in Dubai. As you can see, many free trade zones will help you start a business in Dubai.
With the 10-year residency law and changes to UAE labour laws introduced in 2022, now is the perfect time for foreign business owners to register and operate as free zone companies in the city. For more options, check out the Al Hamriya free zone in Sharjah.
