Every entrepreneur care about two important parameters before setting up their business – Ownership and Taxation. When it comes to business opportunities, Dubai is a favored location for these entrepreneurs to start and build their business.
One of the reasons for choosing Dubai is the “Dubai Free Zones”, which are special economic zones set up at various locations throughout the city by the Dubai government. Free zones allow 100% business ownership to the business owners and also offer tax exemptions. As a business owner, you are entitled to all the profits obtained from your business and use it to expand the trade if necessary. Dubai Free zones offer just that and much more. Let us take a quick look at a few of the major free zones in the city and their offerings.
Dubai Airport Free Zone
Established in 1996, Dubai Airport Free zone (DAFZA) is one of the fastest growing economic zone in the region with 4.7 percent contribution to Dubai’s GDP. DAFZA offers international investors 100 percent foreign ownership and tax exemption and zeroes currency restrictions. A number of companies from different industries like electrical and electronic, IT, telecommunication, pharmaceutical, cosmetics, engineering, aerospace, aviation, logistics, and food and beverage are few among them. Currently, the economic zone provides 3 types of licenses, namely trade, service, and industrial license.
Dubai Design District
Dubai Design District (D3) is dedicated to startups and entrepreneurs in the design community and established design, luxury, and fashion brands.
Dubai Healthcare City
DHCC is a healthcare economic zone built to meet the demand for world-class medical care and services. Through various strategic partnerships, DHCC provides various services including medical education and research, pharmaceuticals, medical, and allied support.
Dubai Internet City
DIC is an information technology park created by the Dubai government as an economic free zone. The rules of DIC allows any companies within the zone to 100 percent foreign ownership. The flexibility allowed within the zone is the prime reason why global information technology firms like Facebook, LinkedIn, Google, Dell, Intel, Microsoft, IBM, Cisco, HP, TCS, and Accenture operate their offices here.
Dubai International Financial Centre
DIFC is a financial hub for the Middle East, Africa, and South Asian markets. It has its own independent Internationally regulated judicial law, common law framework, and global financial exchange. The zone hosts financial institutions including wealth funds and private investors. It further offers companies 100 percent ownership and a 50-year guarantee of taxless corporate incomes and profits.
Dubai Media City
The DMC is a major hub for media organizations including news agencies, publishing, online media, advertising, production, and broadcast facilities. The visa and operational procedures are relaxed for any firm operating within DMC.
Dubai Multi Commodities Centre
DMCC is UAE’s largest free zone with around 15,000 registered members as of 2018. Companies operating within DMCC operate across various stages of the supply chain in addition to other support and facilitation services.
The four major commodities traded in the zone are gold, diamonds and pearls, tea and coffee. There are also financial management firms within the zone, like the Dubai Commodity Asset Management (DCAM).
Jebel Ali Free Zone
The JAFZA is a free economic zone home to around 7000 global companies including approximately 100 of the Fortune Global 500 companies. JAFZA contributes to 32 percent of the total FDI flow into the country and contributes 21 percent of Dubai’s GDP. JAFZA is also the world’s largest free zone, spread over 57 square kilometers in Dubai.
To know more about Dubai’s free zones and setting up your company in any one of them, contact your business consultant in Dubai.