Free zones in Dubai

Dubai is one of the world’s leading investment destinations, offering an ideal environment for business thanks to its advanced infrastructure and flexible laws. One of Dubai’s most prominent features is the presence of free zones, which play a vital role in attracting investors and entrepreneurs from all over the world. Dubai’s free zones offer a wide range of benefits that make them an ideal choice for establishing a business, including full foreign ownership, tax exemptions, advanced infrastructure, and easy procedures for establishing companies.

Dubai includes several free zones in Dubai specialized in various sectors such as trade, technology, media, and logistics, allowing investors to choose the free zone that suits the nature of their business. Among the most prominent of these free zones are Jebel Ali Free Zone (JAFZA), Dubai Internet City (DIC), Dubai Media City (DMC), and Dubai South. Each of these areas provides a dedicated work environment and world-class facilities that support business growth and prosperity.

Dubai’s free zones are designed to be dynamic platforms that help companies grow and expand into regional and international markets. These areas provide an integrated work environment that includes ready-made offices, warehouses, and advanced logistical services, in addition to the legal and administrative support necessary to establish and manage a business. Thanks to these advantages, Dubai’s free zones have become a favorite destination for startups and multinational companies alike.

In short, Dubai’s free zones provide an ideal investment environment that supports innovation and growth, making them the ideal choice for anyone seeking to establish their business in one of the most vibrant and advanced cities in the world. In this article, we will review in detail how to establish a company in these regions, and the many benefits that you can gain from choosing these distinctive locations.

Free zones in Dubai

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What are the most famous free zones in Dubai?

Dubai South

Dubai South is one of the most important free zones in Dubai. Dubai South supports all types of businesses and industries and extends over a large area estimated at about 145 square kilometers.

Jebel Ali Free Zone

One of the largest free zones in the world, it is distinguished by offering many advantages to investors, for example: complete tax exemption and the right to own the company 100% without an Emirati sponsor partner, which made the Jebel Ali Free Zone the number one zone for investors.

Dubai Airport Free Zone

It is one of the most important free zones in Dubai since its establishment, which makes the decision to establish a company there an excellent step, as it supports commercial and industrial businesses and includes major trades in: automobile trade, fashion, communications and information companies, and others.

Dubai Media City

Dubai Media City is considered the largest free zone in the Middle East and Africa and supports the thriving media and business sector. It contains about 1,500 headquarters of the largest media companies around the world.

Dubai International Financial Centre

Dubai World Center is considered one of the most important free zones in Dubai. It supports financial and banking services institutions and companies and includes more than 750 international companies. Thanks to the capabilities and activities it contains, it has become a center for the most famous and largest financial services companies.

Dubai World Trade Centre

One of the most important free zones in Dubai, it supports the growth and development of global trade in the Middle East and aims to strengthen the position of the Dubai World Trade Center as a base for various international companies.

Documents required for establishment in free zones

Establishing a company in the free zones in Dubai requires submitting a set of basic documents. These documents may vary slightly depending on the free zone, company type and business activity. Here is a general list of required documents:

Establishment application form: You must complete and submit the establishment application form for the selected free zone.
Copies of passports: Valid copies of passports of shareholders and directors.
Business Plan: Providing a detailed business plan that explains the nature of the business activity, the objectives, and the strategy followed.
Personal photos: Recent personal photos of shareholders and directors.
Memorandum of Association and Articles of Association: Memorandum of Association and Articles of Association.
No-objection certificate: If one of the shareholders or directors is residing in the UAE on a work visa, a no-objection certificate must be submitted from the current sponsor.
Signatory Authorization: Submit a notarized authorization to authorized signatories if the founders or shareholders are not able to sign themselves.
Initial approval: Some businesses may need to obtain initial approval from the relevant authorities before submitting the final application.
Proof of address: Proof of address for the company’s headquarters within the free zone (lease or ownership contract).
Registration and license fees: Pay the fees required to register the company and obtain the necessary licenses.
Register of shareholders and directors: Provide a register containing details of shareholders and directors, including names, addresses and ownership interests.
Additional documents: Some free zones may require additional documents based on the type of business activity or requirements specific to that zone.

Key advantages of establishing in a free zone in Dubai

Establishing a company in a free zone in Dubai comes with many advantages that make it an attractive option for foreign and local investors alike. Here are some key advantages:

Full foreign ownership: Foreign investors can own 100% of the company without the need for a local partner.
Tax exemptions: Companies in free zones usually enjoy tax exemptions on income and profits for specific periods, with the possibility of renewing these periods.
Ease of establishment and procedures: Procedures for establishing companies in free zones are simplified and quick compared to procedures outside free zones.
Freedom to transfer capital and profits: There are no restrictions on transferring capital and profits abroad, making it easier for investors to manage their money.
Advanced infrastructure: Free zones provide advanced infrastructure that includes modern offices, logistical facilities, and equipped warehouses.
Customs exemptions: Companies enjoy customs exemptions on import and export within the free zone.
Possibility of benefiting from trade agreements: Benefiting from a wide network of trade agreements that the UAE has signed with many countries, which enhances export and growth opportunities.
Supportive work environment: Free zones provide a supportive work environment with supporting services such as legal and administrative consulting, marketing services, and human resources.
Residency and work visas: Providing easy residence and work visas for foreign employees and company owners.
Other incentives: Providing additional incentives such as lower costs for services and facilities, and support programs for startups and small and medium enterprises.

Types of licenses available in free zones

In Dubai’s free zones, several types of business licenses are available to suit the needs of different businesses. Here are some of the main types of licenses available:

Commercial license: Allows companies to engage in commercial activities such as selling, importing, and exporting goods and merchandise.
Industrial license: Allows the establishment of companies operating in the fields of manufacturing and production, and requires additional environmental, health and safety approval.
Professional license: Designated for companies that provide professional services such as consulting, legal services, IT services, and engineering.
Educational license: intended for educational and training institutions, such as schools, institutes, and training centers.
Health license: Designated for companies operating in the healthcare fields, such as clinics, hospitals, and medical research centers.
Media license: Designated for companies operating in the media fields, such as digital media companies, media production, publishing, and advertising.
Hotel licence: intended for the management and operation of hotels, tourist facilities and accommodation.
E-commerce license: intended for companies operating in the field of e-commerce and online selling.
Logistics license: Designated for companies that provide transportation, warehousing, and distribution services.
Aviation license: Designated for companies operating in the aviation industry, including aviation-related maintenance and services.
Research and development license: Designated for companies working in the fields of research, development and technological innovation.
Event Management License: Designated for companies that organize and manage events, exhibitions, and conferences.

In conclusion, the Dubai Free Zone is among the most important investment destinations that attract entrepreneurs and investors from all over the world. These areas have unique advantages that include full foreign ownership of companies, tax exemptions, and advanced infrastructure that supports various economic sectors. By providing a flexible work environment and simplified administrative facilities, Dubai free zones contribute to enhancing economic growth and providing diverse investment opportunities.

With its free zones, Dubai has proven to be not only a regional business hub but also a global hub for business and trade. These regions embrace a wide range of industries from financial and technology services to logistics and industrial industries, making them an ideal destination for investors seeking to benefit from a dynamic and encouraging investment environment.

With the variety of options available in free zones such as the Dubai International Financial Center (DIFC), Dubai Internet City, and Jebel Ali Free Zone (JAFZA), investors can choose a location that suits their business needs and expansion strategies. These areas also include a range of support services such as legal advice, government support, and logistics services, which contribute to facilitating the processes of establishing and managing companies.

In conclusion, investing in Dubai’s free zones is a smart strategic move that provides investors with the opportunity to benefit from accelerated economic growth, technological developments and advanced infrastructure. By committing to an ambitious vision and forward-looking planning, companies can achieve long-term success and sustainability in the global business market. Thanks to its free zones, Dubai remains a distinguished investment destination that meets the aspirations of investors and opens up new horizons of opportunities and success for them.

The most important frequently asked questions about free zones in Dubai

Can foreigners fully own companies in free zones?

Yes, foreigners are allowed to fully own companies without the need for a local partner.

What are the capital requirements?

Capital requirements vary based on the type of company and the free zone chosen.

How to transfer a company from a free zone to another region or to the mainland?

This requires special procedures and approval from the competent authorities, and an application is often submitted to the Media Regulation and Supervision Authority (FZRA).