Pros and Cons of a Free Trade Zone in Dubai


Around 20 years ago, the Dubai government began the Free Trade Zones within the country with an aim to capitalize the UAE market and to rework the economic structure. The Jebel Ali Free Trade Zone in Dubai was a pioneering step taken in 1985 by the federal government that modified the commercial control in the whole UAE. Unlike other Emirates, Dubai was intense on inviting foreign investor and offering them several off-track inducements.

Within the recent years, this particular jurisdiction has been a significant factor in diversifying the market sense and making a benchmark over the long-endured protocols of the nation. In consequence, Dubai achieved a successful supposition by way of the multiple Free Trade Zones town proposes that made the opposite Emirates join the league as well. The scheme was such that each significant business sector has a jurisdiction of its own – in order that it might maximize the enablement of every segregation. Other than this – the advantages by way of taxation, complete ownership, and least constraints made it more appealing for entrepreneurs considering company setup in Dubai. Besides, the developmental bodies also made sure to create convinces the procedural points of establishing a Free Zone company. Be it a free zone company registration in Dubai or a call on a chosen area for your enterprise type – the Dubai government had things sorted by implementing with user-friendly and online procedures.

Segregation in a Free Zone Business Setup:

• Free Zone Company

• Free Zone Establishment

• Branch Office / Branch Company

A few of the Free Trade Zones in UAE are as follows:

• Jebel Ali Free Zone

• Dubai Multi-Modal Corridor

• Dubai Media City

• Dubai Web City

• Dubai Airport Free Zone

• Dubai International Financial Centre

• Dubai Silicon Oasis, Dubai Healthcare City

• Dubai Biotechnology & Research Park

• Dubai Knowledge Village

• Dubai International Academic City

• International Humanitarian City

• Dubai Outsource Zone

• Dubai Maritime City

• Dubai Logistics City

• EnPark, Dubai Cars & Automotive Zone

• Dubai Sports City, International Media Production Zone

• Dubai Studio City and Dubai Creative Clusters Authority

Pros and Cons of a Free Trade Zone

Several reports state that it’s the Free Trade Zone that helped Dubai develop into a business hub of UAE. With the escalation of foreign entities clamouring to determine an organization and the rise within the variety of free zone company registration in Dubai – there are all reasons to imagine it. But this region can be sure to a set of Pros and Cons. Read on!


• Eliminates the duty of forming a partnership with a UAE national.

• Provides complete possession, as investors can have 100% ownership in the corporate.

• Special consideration by way of appointments, investments, and procedures.

• Freedom in operations and movements of the corporate.

• Advantages on taxation, customs, currency control and more.

• Administrative services will be cleared through a single window system.

• No restrictions on engaging in multiple activity.


• Free Trade Zone firms are restricted in indulging in any business activity inside the country.

• These firms are only allowed to do business internationally; it limits their expansion opportunities.

• They’re mainly situated within the least proximate areas – nevertheless, transport and connectivity are making things higher.

Though there are few limitations, the intensified attraction towards Free Trade Zone continues. The Dubai government plans to introduce more such jurisdictions within the years to return.


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