About 20 years ago, the Dubai government initiated Free 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 went to great lengths to invite foreign investors and offer them various off-track incentives.
In recent years, this particular jurisdiction has been a major factor in diversifying the sense of the market and creating a benchmark on the nation’s long-standing protocols. As a result, Dubai made a successful guess in terms of the multiple Free Zones proposed by the city 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 for entrepreneurs who were considering setting up a business in Dubai. In addition, development agencies also made sure to convince the procedural aspects of setting up a Free Trade Zone company. Be it a free zone business registration in Dubai or a decision on a designated area for your type of business, the Dubai government got things done by implementing user-friendly online procedures.
Segregation in a commercial free zone configuration:
• Free Zone Company
• Establishment of Free Trade Zone
• Branch / Branch
Some of the Free Zones of the United Arab Emirates are the following:
• 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 Healthcare City
• Dubai Biotechnology and Research Park
• Dubai Knowledge Village
• Dubai International Academic City
• International Humanitarian City
• Dubai Outsourcing Zone
• Maritime City of Dubai
• Dubai logistics city
• EnPark, Dubai Cars & Automotive Zone
• Dubai Sports City, international media production area
• Dubai Studio City and Dubai Creative Clusters Authority
Pros and cons of a free zone
Various reports claim that it is the Free Trade Zone that helped Dubai to become a commercial center of the United Arab Emirates. With the escalation of foreign entities clamoring to establish a business and the increase in the number of free zone business registrations in Dubai, there is every reason to believe it. But this region is also tied to a number of pros and cons. Keep reading!
Pros:
• Eliminates the obligation to associate with a UAE citizen.
• Provides full ownership, as investors can have 100% ownership of the company.
• Special consideration in terms of 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 authorized through a single window system.
• There are no restrictions to participate in more than one activity.
Cons:
• Companies in the Free Zone have restrictions to carry out any commercial activity within the country.
• These companies can only do business internationally; limits your opportunities for expansion.
• They are located mainly in the less close areas; however, transportation and connectivity are making things better.
Although there are few limitations, the intensified attraction to the Free Trade Zone continues. The Dubai government plans to introduce more such jurisdictions in the coming years.