UAE , the land of flourishing businesses and trade ties has a multitude of free trade zones facilitating the smooth flow of foreign investment to the region. These are special economic zones set up for the expatriate investors. These free zones provide tax-free and customs duty-free\u00a0benefits to the foreign investors. This has become a significant factor for investors to flock to the UAE.<\/p>\n\n\n\n
The\nfree zones in UAE are located in Dubai, Sharjah, Abu Dhabi, Ajman, Fujairah, Um\nAl Qwain and Ras Al Khaimah. These free zones come under the categories of\nmainland, airport and sea port free zones. Each free zone is specifically\ncreated for various operations like industrial, healthcare, finance, media,\nresearch, maritime, logistics and IT services for investors looking to start up\na business in UAE.<\/p>\n\n\n\n
Each\nfree zone works independently and strictly adheres to certain set of rules and\nregulations pertaining to that free zone. The rules usually differ according to\nthe type of industry or business. Inside each free zone, there can be one or\nmore business or industry segments operating within and only those that come\nunder the specifications of these industries can work in that particular free\nzone. The free zones in UAE are governed by the Free Zone Authority (FZA).<\/p>\n\n\n\n
Free\nzones are an oasis for foreign investors in UAE but it does have its advantages\nand disadvantages.<\/p>\n\n\n\n
Let us\nmake a quick look at the pros and cons of free zones in UAE.<\/p>\n\n\n\n
They have the\u00a0advantages\u00a0like:<\/p>\n\n\n\n
This is a winning proposition for expats looking to set up businesses\nin the UAE. While an investor gets only 49% stake from a limited liability\ncompany, there is no such restriction for a business in a free zone in UAE.\nExpat investors are given 100% ownership of their enterprises functioning\ninside a free zone.<\/p>\n\n\n\n
The businesses established in a free zone are completely\nexempted from export\/import taxes and corporate tax for about 50 years.<\/p>\n\n\n\n
Free zones have a competent infrastructure and provide a\nconstructive business platform for various businesses to grow and excel in\ntheir respective verticals.<\/p>\n\n\n\n
The free zones assist foreign entrepreneurs in labor recruitment\nand other services like sponsorship and accommodation.<\/p>\n\n\n\n
On The Downside:<\/strong><\/p>\n\n\n\n The businesses in a particular free zone are not entitled to\nexpand beyond their free zone limit to other areas of UAE. If you wish to do\nso, the business owners have to re-register their company as a private\nbusiness.<\/p>\n\n\n\n Only those business segments meant to work in a specific free\nzone are allowed to work in that zone.<\/p>\n\n\n\n Beyond\nthese minor points, foreign businesses thrive in the UAE region and more\ninvestors flock to the region for new business opportunities.<\/p>\n","protected":false},"excerpt":{"rendered":" UAE , the land of flourishing businesses and trade ties has a multitude of free trade zones facilitating the smooth flow of foreign investment to the region. These are special economic zones set up for the expatriate investors. These free zones provide tax-free and customs duty-free\u00a0benefits to the foreign investors. This has become a significant factor for investors to flock to the UAE. The free zones in UAE are located in Dubai, Sharjah, Abu Dhabi, Ajman, Fujairah, Um Al Qwain and Ras Al Khaimah. These free zones come under the categories of mainland, airport and sea port free zones. Each […]<\/p>\n