Free-Trade Zones (FTZs) in the United Arab Emirates (UAE) are specially designated economic areas designed to attract foreign investment. Companies operating in these zones benefit from a range of significant incentives, making the UAE an attractive hub for international business.
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The benefits typically include:
- 100% foreign ownership (no need for a local sponsor)
- Exemption from import/export taxes and customs duties on goods going through the zone
- Corporate tax incentives (often corporate‑tax exemptions under certain conditions)
- Freedom to repatriate capital and profits fully
- Streamlined business setup procedures, modern infrastructure, and ease of doing business for foreign entrepreneurs.
For companies looking to expand globally from the UAE base, be it in trade, manufacturing, tech, media, services or logistics, FTZs offer a powerful gateway. At Dewey & LeBoeuf LLP, we help businesses navigate legal, regulatory, licensin,g and compliance aspects to maximize the benefits of these zones while meeting due diligence requirements.
Below is a detailed guide to the main free‑trade zones across the UAE, organized by emirate, to help you choose the best base for your business.
Free-Trade Zones in the UAE – By Emirate
Here is a (close to) complete list of free zones in the UAE (approx. 46 zones), categorized by their location. For each zone, we include a brief description of what it is best for.
Dubai Free Zones
Dubai hosts by far the largest number of free‑trade zones — often the first choice for international businesses, trading firms, logistics and tech ventures.
Here are many of the major Dubai free zones:
- Dubai Airport Free Zone (DAFZA)
- International Free Zone Authority (IFZA), Dubai
- Jebel Ali Free Zone (JAFZA), Dubai
- Dubai Multi Commodities Centre (DMCC)
- Dubai Silicon Oasis (DSO)
- Meydan Free Zone, Dubai
- Dubai Internet City (DIC)
- Dubai Media City (DMC)
- Dubai International Financial Centre (DIFC)
- Dubai Healthcare City (DHCC)
- Dubai South (formerly Dubai World Central)
- Dubai Knowledge Park (DKP) / Dubai Knowledge Village
- Dubai Biotechnology & Research Park (DuBiotech) / Dubai Science Park (DSP)
- Dubai Maritime City
- Dubai Cars and Automotive Zone (DUCAMZ) / Dubai Auto Zone / Automotive‑related free zones in Dubai
- Dubai Design District (d3)
- Dubai Studio City (DSC)
- Dubai Outsource City / Dubai Outsource Zone
- Dubai International Academic City (DIAC)
- Dubai Production City (formerly International Media Production Zone / IMPZ)
- Dubai Wholesale City / Dubai Industrial Park (industrial/wholesale free‑zone)
- Dubai Logistics City (Dubai South Logistics District)
Beyond these, there are other smaller or more specialized free zones in Dubai serving niche or industry‑specific purposes, making Dubai highly versatile and attractive for diverse business needs.
Abu Dhabi Free Zones
Abu Dhabi, as the capital emirate, offers several strategic free zones, particularly favorable for manufacturing, renewable energy, ports & logistics, and global trade.
Some prominent free zones there:
- Abu Dhabi Global Market (ADGM)
- Abu Dhabi Airport Free Zone (ADAFZ)
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Abu Dhabi (media/entertainment free zone)
- Masdar City Free Zone (Abu Dhabi)
- Khalifa Port Free Trade Zone (part of Abu Dhabi ports/industrial zones)
- Zayed Port Free Zone (Abu Dhabi port-based free zone)
- Musaffah Port Free Zone (Abu Dhabi)
- Corniche Free Zone (Abu Dhabi)
- Al Sila’a Free Zone (Abu Dhabi)
These zones in Abu Dhabi provide an attractive alternative to Dubai for investors focusing on manufacturing, clean energy, trade, and logistics, often with competitive setup costs and access to international ports.
Sharjah Free Zones
Sharjah, neighbouring Dubai, offers free zones that are often more cost‑effective, making them attractive for small/midsize enterprises, media, trade, and manufacturing.
Notable Sharjah free zones:
- Sharjah Airport International Free Zone (SAIF Zone)
- Hamriyah Free Zone Authority (HFZA)
- Sharjah Media City Free Zone (Shams)
- Sharjah Research, Technology and Innovation Park Free Zone (SRTIP)
- Sharjah Publishing City Free Zone (SPC)
- Sharjah Healthcare City Free Zone (SHCC) (or other health‑related free zones in Sharjah)
Sharjah’s FTZs are often more affordable than Dubai’s zones, which can be an advantage for startups, SMEs or firms seeking lower operational costs while accessing Gulf markets.
Northern Emirates – Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain
Outside of Dubai, Abu Dhabi, and Sharjah, the northern emirates and smaller emirates also host free zones — often attractive for SMEs, trading firms, manufacturing or companies seeking cost‑effective setups.
- Ajman Free Zone (AFZA)
- Ajman Media City Free Zone (or Ajman airport‑based / creative free zone)
- Ajman China Mall Free Zone (or other smaller Ajman free zones)
- Ras Al Khaimah Free Trade Zone (RAK FTZ)
- Ras Al Khaimah Economic Zone (RAKEZ)
- RAK Maritime City Free Zone Authority (RMCFZA) / RAK Maritime City Free Zone
- RAK International Corporate Centre (RAK ICC) / Ras Al Khaimah Investment‑Authority Free Zone (RAKIA) Free Zone
- RAK Media City Free Zone (or RAK Media / digital‑media centric free zone)
- Fujairah Free Zone (FFZ)
- Fujairah Creative City Free Zone (or related media/creative free zone)
- Fujairah Oil Industry Zone (FOIZ) / Fujairah Port-related free zone(s) — some sources list specialized free zones in Fujairah.
Which Free Zone Should You Choose – Considerations
Choosing the right free‑trade zone depends on several factors. Here’s what you need to consider:
- Nature of business/industry — Are you doing manufacturing, trade, services, media, tech, logistics or finance? E.g., for finance, a zone like ADGM or DIFC makes sense; for commodities or trade, DMCC or JAFZA; for media/digital content, Dubai Internet City, Media City or Ajman Media City; for manufacturing/industrial, KIZAD, RAK FTZ, Hamriyah, etc.
- Cost & budget — Some zones are more economical (Ajman, RAK, Umm Al Quwain, some Sharjah zones) compared to premium zones in Dubai or Abu Dhabi. If you’re a startup or SME, cost‑effective zones might be more suitable.
- Location & logistics — Need for port access, airport proximity, logistics distribution, shipping, seaport or airport‑adjacent zones (JAFZA, DAFZA, Hamriyah, etc.) are advantageous.
- Type of license required — Some zones allow trading, services, industrial, media, finance, etc. Make sure the zone supports your business activity.
- Long‑term plans and scalability — If you plan to scale, have multiple activities, or expand to mainland UAE, zones with flexibility, dual licenses or inward redomiciliation may be preferable.
As a cross‑border law firm, Dewey & LeBoeuf can guide you through analyzing these factors, selecting the optimal FTZ, handling license application, compliance, and structuring your entity to ensure maximum benefit and legal safety.
Tax Advantages and Operational Flexibility in UAE Free-Trade Zones
Tax incentives are one of the most powerful reasons investors choose free-trade zones in Dubai, Abu Dhabi, Sharjah and the rest of the UAE. Free-zone companies enjoy 0% corporate tax, 0% import and export duties, 0% income tax, and full profit repatriation. These financial benefits significantly reduce operational expenses, giving businesses more freedom to reinvest earnings and sustain long-term growth. Additionally, most free zones allow multi-year licenses, making compliance easier and helping investors plan for the future without worrying about annual changes in regulations.
Operational flexibility is another major advantage. Free zones offer a wide range of business license categories including trading, consultancy, industrial, media, freelance and e-commerce. Many zones allow virtual or flexi-desk offices, making them ideal for digital entrepreneurs and international consultants. Warehouse facilities, ready industrial land, logistics centers and office towers create space for businesses of all sizes—from freelancers to multinational corporations. Dubai’s free zones are particularly attractive for businesses targeting Middle Eastern and global markets, while Abu Dhabi’s zones are preferred for large-scale industrial and energy-focused operations. This flexibility ensures that any type of business can find the perfect environment within the UAE’s free-zone ecosystem.
Industry-Specific Opportunities Across Major UAE Free Zones
Different UAE free zones cater to specific industries, helping businesses grow faster with tailored infrastructure and specialized licensing. Dubai Media City, Dubai Internet City and Dubai Design District serve media, technology and creative companies with world-class studios, digital facilities and content-production environments. Dubai Healthcare City is ideal for hospitals, clinics, medical institutes and pharmaceutical companies looking for high-standard healthcare infrastructure. Abu Dhabi Global Market is perfect for financial institutions, fintech startups and investment firms due to its internationally recognized regulatory authority.
Sharjah Publishing City Free Zone supports authors, publishers and content creators, while Hamriyah Free Zone welcomes manufacturing, steel, textile and industrial companies. Dubai Airport Free Zone and Jebel Ali Free Zone are logistics and supply-chain powerhouses, connecting businesses to global trade routes. Ras Al Khaimah Economic Zone (RAKEZ) offers investors affordable industrial land and manufacturing facilities, attracting factories and medium-size enterprises. For entrepreneurs focusing on e-commerce, digital services or consulting, zones like Sharjah Media City (SHAMS) and Ajman Free Zone provide cost-efficient, fast licensing solutions.
These industry-specific free zones allow businesses to innovate, collaborate and grow within specialized environments that match their vision and operational needs.
Common Questions About UAE Free‑Trade Zones
What are the main advantages of setting up in a UAE free zone?
– 100% foreign ownership, with no need for local Emirati partner.
– Tax and customs duty exemptions (import/export, corporate tax, repatriation of profits) under favourable regimes.
– Ease of company formation: streamlined procedures, less bureaucracy, modern infrastructure, and support services.
– Access to global markets, ports, logistics and export/import networks — especially good for trading, logistics, manufacturing and export‑oriented businesses.
– Flexibility — many zones support multiple business activities, dual licenses, and diverse types of business (manufacturing, services, media, finance, tech, etc.) depending on the zone.
Is a free zone license enough to do business all over UAE or internationally?
A free zone license allows you to operate within the zone and conduct import/export internationally. However, doing business directly with UAE mainland customers may require additional licensing or a local distributor/agent, depending on local regulations. For cross‑border trade, export/import and global operations, FTZs remain excellent platforms.
Which emirates apart from Dubai are best for cost‑effective company setup?
Emirates such as Ajman, Ras Al Khaimah, Fujairah, Umm Al Quwain and Sharjah often offer more affordable licensing and lower overhead costs, making them attractive for SMEs, startups, and firms with limited budgets.
Can I repatriate profits and capital freely if I set up in a free zone?
Yes — one of the key benefits of UAE free zones is the freedom to repatriate capital and profits fully, without restrictions.
How does Dewey & LeBoeuf LLP help businesses set up in UAE free zones?
We provide comprehensive legal and corporate services: advising on the best free zone based on your industry and business needs; helping with license application, structuring, compliance, regulatory requirements, and cross‑border legal issues.
Can a foreigner own 100% of a company in a UAE free zone?
Yes. One of the primary advantages of UAE free zones is that foreign investors can own 100% of their companies, no local partner or sponsor required.
Are there tax savings when operating in a free zone?
Yes. Free zones often offer corporate tax exemptions, customs duty exemptions on imports/exports, and free repatriation of capital and profits.
Why Working with Dewey & LeBoeuf Makes a Difference
When you partner with Dewey & LeBoeuf LLP, you benefit from deep regional insight, international experience, and meticulous legal precision. We help you:
- Choose the most suitable free zone based on your business model, growth plan and risk appetite
- Navigate regulatory, licensing and compliance requirements seamlessly
- Structure your business to maximize benefits like tax exemptions, ownership rights, and repatriation privileges
- Ensure your expansion to UAE and beyond is legally secure and optimized for long-term success
Our team is well-versed in cross‑border legal frameworks, free zone laws, corporate governance and international business compliance — making us an ideal partner for startups, SMEs or large corporations looking to leverage UAE’s free‑trade zones.
Contact Us Today
If you’re considering expanding to the UAE — whether in Dubai, Abu Dhabi, Sharjah or beyond — now is a great time. Let Dewey & LeBoeuf LLP guide you through selecting the optimal Free‑Trade Zone, setting up your business structure, and launching operations smoothly and compliantly.
Contact us today for a consultation and take the first step toward unlocking your business potential in the UAE.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE