About 30 years ago, United Arab Emirates (UAE) embarked on the development of the first free trade zone in Jebel Ali, Dubai. Setting up a business in Dubai then was different from now. Free Trade Zone development incrementally became as one of the important points of economic diversification of the UAE and cannot be overlooked while setting up a business in Dubai. The urge of the UAE rulers to decrease significantly the dependence of the economy on oil resulted in the free trade zone development in earnest.
As of 2017 there are about 40 free trade zones operating in the territory of the UAE. Most of them are located in Dubai. In addition, there are two kinds of Free Trade Zones: Specialized Free Trade Zone with a limited number of activities and Non-specialized Free Trade Zone are those ones with a full range of business activities permitted by local law.
The main peculiarity of Free Trade Zone company formation in UAE is that there is no taxation, where companies are highly stimulated to do economic activity. Apart from it, the following number of points is recognized as advantageous to open the company. Here is why you should set up business in Dubai.
Here is why you should set up business in Dubai.
- A tax free investment environment (0% corporate and personal tax);
- 100% foreign ownership;
- Fast track Visa issuance;
- A wide range of real estate facilities to suit your business needs;
- No currency restrictions;
- 100% import and export tax exemption within the Free Zone;
- Strategic location with access to over two billion consumers;
- Close to international airports and major sea ports;
- No restrictions on hiring foreign employees;
- Modern and investor-friendly rules and regulations.
Such excellent conditions and well-developed infrastructure to conduct business attracts investors from all over the world. There are many more advantages of setting up a business in Dubai, however all of them are beyond the scope of this write-up. Company formation in Dubai is even more advantageous under certain scenarios.
Dubai can be considered as a bright example of the harmony of world-class infrastructure and free zones located all around the city. Hundreds of companies are incorporated every year and doing business not only in UAE, but also in GCC and all over the world. Henceforth company formation in Dubai is proving to be more favored.
The best and the largest free trade zone in the UAE is Dubai Multi Commodities Center (DMCC) located opposite to the tourists Dubai Marina area. It is a fashionable and business district of Dubai. Currently about 12 000 companies are registered in DMCC since 2002. It has 66 buildings, which includes 5 hotels, 92 educational centers and about 500 retail shops. Experts admitted it 2 times in a row as the “Global Free Zone of the Year 2016” from FDintelligence among 60 free zones from other parts of the world.
Company formation in UAE know about.
Company formation in UAE- know about.
UAE stresses its attention to the high technology development and it is easy to understand presence of 5 technological free zones in Dubai such as Dubai Internet City, Dubai Silicon Oasis, Dubai Biotechnology and Research Park, Dubai Outsource Zone and Technopark.
Most of the Free Zone in Dubai has its own specialization, such Dubai Health Care City is specialized in medical and healthcare industry, and Dubai Silicon Oasis is oasis of information technology and software development.
One of the oldest and authoritative free zones in Dubai is Dubai Airport Free Zone Authority or DAFZA. Located nearby to Dubai International Airport DAFZA provides high-class office spaces and warehouses with wide range of business activities. It is still a number one priority to many to set up business in Dubai. Apart from company formation in Dubai you have several other wise options.
Free zones located in Northern part of the UAE are difficult to compare with Dubai Free Zones in terms of infrastructure, but such free trade zones are growing steadily.
Hamriyah Free Zone and Sharjah Airport International Free Zone are located in Sharjah. Both considered being well-developed free zones providing with warehouses and enables to the companies direct access to the Arabian Gulf and Indian Ocean through the ports, apart from them international airport which allows to connect to 230 cities of the world.
Ajman Free Zone Authority is the only free trade zone in Ajman Emirate providing with office spaces and warehouses. The free zone is one of the popular and busy among other free zones of the Northern Emirates.
Ahmed Bin Rashid Free Zone and Umm Al Quwain Free Trade Zone are located in Umm Al Quwain Emirate.
Ras Al khaimah has Ras Al Khaimah Free Trade Zone (RAK FTZ), RAK Investment Authority, RAK Media Free Zone and RAK Maritime City Free Zone. The most prominent and well developed among them is Ras Al Khaimah Investment Authority and Ras Al Khaimah Free Trade Zone. Especially RAK FTZ provides with vast industrial area, where large industrial companies are located like RAK Ceramics, Ashok Leyland, STREIT Security Vehicles and others.
Fujairah has two designated free zones like Fujairah Free Zone Authority and Fujairah Creative City. Among them Fujairah Creative City is specific, it allows to set up companies in media, events, consulting, education, communication and marketing, music and entertainment, design and technology complementing existing media clusters in the region.
The notable thing is that free zone factor in UAE plays remarkable role in economy and it is still actual and in demand. Nowadays, it became as some kind of a brand of the UAE. It can provide with various options to set up the company with various business activities.
A tangible success of free zone development in UAE, especially in Dubai emboldens further development to attract more investors and to forge financial and business center status of the world. To set up business in Dubai you have many flexible options to choose from.