Free zones or free economic zones are present in several countries. These exclusive areas are designated for the growth of various businesses as they allow low taxation or exemption from taxes. UAE is the most famous country for providing free zones. There are more than 45 free zones in different emirates of UAE. All of these are providing the best facilities and incentives to businesses. It is the reason that free zones in the UAE commonly get various awards on the international level.
With the help of detailed statistics, we have concluded the best 5 free zones in the UAE.
Dubai Multi Commodities City (DMCC) is not only the current winner of the world’s best free zone award 2018 by FDI, but in fact, it is achieving this milestone for the fourth consecutive year (2015 to 2018). DMCC has achieved exceptional growth by providing the best facilities to all types of businesses. There are more than 14,000 companies operating here and the number of employees is over 61,000. Few famous global companies present in DMCC are Colgate-Palmolive, American Express, Deliveroo, etc.
There are several types of commodities that are the main focus of DMCC. These are gold, diamond, base metals, pearls, spices, coffee, and tea. Every year, millions of tons of these products are traded on a worldwide level through DMCC. Most of the companies established here are directly or indirectly involved in the trading of various commodities. So, if your company is related to the trading business, then the best place not only in the UAE but also in the world is DMCC.
2. UAQ FTZ
Dubai is hosting most of the free zones in UAE, but several important free zones are also present in other emirates of UAE. A prominent example is the Umm-al-Quwain Free Trade Zone (UAQFTZ) in the emirate of Umm-al-Quwain. UAQ FTZ is not limited to a single industry and assists in the establishment and growth of all types of industries. This free zone is especially supportive to micro-businesses and SMEs.
Company formation in UAQ FTZ is not only tax-free but implies very few costs of registration, office accommodation, and other annual expenses. There is a lot of space available in UAQFTZ and companies face less competition here. This free zone provides all the facilities available in other free zones (repatriation of profits, company ownership, no currency restrictions, etc.) at a very low cost. It is the reason that growth opportunities for SMEs are immense in UAQFTZ. All these properties prove that this important free zone is best for small businesses.
3. Shams Free Zone
Different emirates in UAE are giving much importance to the media industry. It is true that media-related free zones are present in various emirates. But Shams free zone in Sharjah has a prominent place among all these free zones. Due to its several unique features, it is known as the UAE’s fastest-growing media free zone. There are numerous reasons to choose Shams for company formation.
Main features that distinguish Shams from other media free zones include:
- The cost of setting up a business in Shams is quite low as compared to many other free zones.
- A single license provides companies to start multiple business activities.
- One can change his/her business activity even after incorporation of the company.
- Obtaining visas and opening bank account becomes easier with Shams company formation.
Shams free zone also provides all other incentives that are commonly available in other free zones. These factors make Shams as one of the best free zones in the UAE.
Small emirates have fewer free zones but they try to compensate this by providing exciting features to investors and company owners. An important advantage of these free zones in smaller emirates is their inexpensiveness and easy procedure for company setup. Ras Al Khaimah Economic Zone (RAKEZ) is the world’s most economical free zone. RAKEZ achieved this status when FDI declared this large free zone as the most cost-effective free zone in 2017.
RAKEZ also provides business opportunities for several industries. Below are some separate zones being designated for various industries.
- Business Park provides fully furnished offices for SMEs and large corporations.
- Technology Park is suitable for technology and IT-related companies.
- Industrial Park provides all necessities to heavy industries.
- Media Zone is for companies related to the media industry (TV, radio, film, etc.).
- Academic Zone provides a dedicated place for all types of educational institutes (schools, colleges, universities, etc.).
These characteristics make this free zone one of the best free zones in the entire UAE for a large number of business industries.
5. Dubai South
Expo 2020 is a major economic activity that will be hosted by Dubai in the near future (October 2020 to April 2021). The city is making its best preparation for the success of this exhibition. Thousands of delegates will arrive during Dubai Expo 2020 from various countries. An important step taken for Expo 2020 by the government of Dubai is the foundation of Dubai South, a new free zone.
Dubai South is providing a complete lifestyle opportunity as business and residential areas will be present side by side. It is, therefore, can be called that Dubai South is a business city within a city. This unique quality qualifies Dubai South to be part of one of the best free zones in Dubai.
From the above details, you can easily understand that these 5 free zones provide one of the best business facilities to large companies, SMEs and freelancers. Feel free to ask us any queries regarding any free zone in Dubai and other emirates of UAE.