What is a free zone and why should you consider one?
The UAE has long been an attractive destination for entrepreneurs around the world. With low taxes, a strategic location in the heart of the world’s largest and fastest-growing markets, and a government dedicated to promoting and supporting businesses, it’s not hard to see why. But while these are the headline-grabbing factors, there’s another important reason why so many are flocking to the UAE’s shores to practice no-business zones. So what is a free zone?
What is a Free Zone?
Also known as free trade zones Free zones are essentially economic areas where goods and services can be traded, usually at reduced rates of tax and duty. They were originally introduced to boost international business in the region by offering benefits such as 100% foreign ownership of companies. There are currently 45 free trade zones in the UAE.
Over the years, the UAE free zones have evolved to offer ever-greater benefits to the businesses within them. Many free zones cater to specific industries or business types, for example, Dubai Healthcare City serves the healthcare industry, while the JAFZA Free Zone Authority is directly linked to the region’s largest port and is therefore preferred by import and export companies.
So why is establishing a free trade zone such an attractive option and what could it mean for your business?