20 Oct Things You Need to Know About Free Zones in UAE
Tired of your 9 to 5 job? If you have the guts and the determination to be your own boss and increase your earning potential, then the best way to do that is through running your own business.
The good news is that the UAE offers lucrative opportunities for your entrepreneurial journey. With the huge number of free zones in UAE, the different parts of the country, you will get a chance to take advantage of the following benefits:
- 100% foreign national ownership without the need for a local service agent (LSA) or local sponsor
- 100% fund transfer
- 100% repatriation of profits and revenue
- Exemption from import and export taxes as well as personal taxes
- Waiver of corporate taxes
- Less documentation required
- Simple, quick, and more affordable processing of recruitment and workforce
- Quicker incorporation process
- Long-term leasing options for up to 25 years offered at great terms to investors
- Easy availability of housing, legal, labour, immigration, and other facilities
The Role of Free Zones in the Global Trade
Now that you already know the great things that free zones have in store, let’s take a look at its importance when it comes to the global trade.
In accordance with the Organisation for Economic Cooperation and Development (OECD), there are now over 3,500 Free Trade Zones or Special Economic Zones located in 130 countries.
Particularly, the Middle East handles $552bn worth of exports. In fact, statistics show that in 2017 alone, Dubai handled AED 434bn worth of goods. As per the UAE Central Bank, the exports from UAE free zones reached AED225.5bn, which marked a 6.6% growth from 2016.
The Number of Free Zones in the UAE
As a global hub for business, the UAE has among the highest number of free zones in the globe. Currently, there are a total of 45 and 10 others are under construction. It is also worth mentioning that 30 of those are Dubai free zones. Hence, if you are aiming to make your business big, this is the right emirate to set it up.
In a statement in Gulf Business, Shoaib Alrahimi, VP Business Park free zone at Dubai South, claimed that the free zone model is crucial for the region’s development as it provides an easy “in” for investors. He also noted that every government is eager to devise its free zone model in order to attract more investors, as this successful business model has an extremely positive effect to the country’s economic uplift.
The Biggest Free Zone in Dubai
Ever wondered which free zone is the biggest one in Dubai? Financial Times’ fDi magazine named Dubai Multi Commodities Exchange (DMCC) as the world’s top free zone for the third year running. It has 13,700 companies and makes a staggering 10-percent contribution to Dubai’s Gross Domestic Product (GDP).
These are just some of the things you need to know about UAE free zones and Dubai free zones. The best way to predict the future is to create it now. So, choose the perfect location and set up your own business!