Free Trade Zones (FZ) in Dubai

Free zones (sometimes called a free economic zone, duty free zone, tax free zone, trade free zone or free trade zone) in the UAE allow 100% foreign ownership and have no taxes - usually guaranteed for 15 or 50 years. Each free zone has its own specific requirements regarding minimum office/warehouse space and permitted activities. Companies outside the free zones require a local sponsor and allow maximum 49% foreign ownership.

The ushering in of Free Zones has transformed the economic scenario of the UAE in a short span of nearly 17 years, bringing about tremendous change in the industrial scene of this young nation. The pioneer in the Free Zone Empire in UAE is Jebel Ali Free Zone, which was started in Dubai on 9th February, 1985. This was totally a new concept to the Middle East. When the Dubai Government issued a Decree establishing the Jebel Ali Free Zone Authority (JAFZA), at that time the announcement received little attention. In the business circle most had never heard of the Free Zone idea. Even those who were aware of the concept, were doubtful whether it would work in the traditional environment of the Gulf. Nearly seventeen years have passed and the Free Zone concept is still thriving in the UAE. During the last decade hardly a year passed without a Free Zone being established in some part of the country. So far, there are 13 Free Zones & some more are in the developmental stage.

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With the number of zones increasing, their impact on the UAE economy has deepened. By now, UAE Free Zones are home to around 5000 companies. Total investment is estimated to be more than $4000 million. And the value of exports from the Free Zones reached to 16.5 billion in 1998. One bank report has rightly said that 'these industrial areas could hold the key to a genuine economic transformation of the region.

The Jebel Ali Free Zone best exemplifies the potential of these free zones. It is estimated that this single Free Zone has accounted for 36% of Dubai's exports & re-exports. This being the first Free Zone in the country has created the benchmark for regulations & incentives. Its rapid growth has also provided a powerful economic inspiration to the other Emirates, which have set up their own Zones to attract investment.

The general incentives offered by the UAE Free Zones are more or less the same. All grant up to 100% foreign ownership, complete exemption of taxes from customs & commercial levies, full repatriation of capital & profits, & extended leases. They also have a minimum of red tape & quick approval procedures. Thus, keeping the engine of industrial diversification rolling by attracting a foreign investment in the private sector is central to the region's overall plan to reduce its economic dependence on oil, while creating employment for its nationals. Moreover, the Free Zones could prove to be the mechanism not only for a new impetus to diversification, but also for changing the very face of industrial activity in this region.

Other Free Zones Under Establishment Are:

1) Dubai Maritime City (DMC)
2) Dubai Carpet Free Zone
3) Dubai Auto Parts City
4) Heavy Equipment and Trucks Zone (HETZ)
5) Mohammad Bin Rashid Technology Park (Technology Free Zone)
6) Dubai Silicon Oasis (DSO)
7) Dubai Flower Centre
8) Dubai Health Care City
9) Dubai Textile village
10) International Media Production Zone (IMPZ)
11) Dubai Aid City
12) Dubai International Arbitration Center (DIAC)

In the field of industrial development during the last decade, there has been a quantum jump in everything that the UAE has been doing & aims at doing in the near future. The most significant of all the success stories of remarkable achievements is the one about the Free Zones.

The UAE has become an important destination for investment and this is due to the Free Zones. This website offers all the information on these Free Zones and at the same time gives an exposure for the advertisers to reach out to millions of viewers globally.

More information: http://www.dubaifaqs.com/free-zone-dubai-sharjah-ajman-fujairah-hamriyah-uae.php