Free Zones in the UAE: What They Are and Why They Work
June 24, 2025
Free Zones in the UAE: What They Are and Why They Work
Free zones in the UAE are specially designated areas created to attract international investment and support economic growth. They offer a business-friendly environment with fewer restrictions and greater flexibility, making them an ideal choice for entrepreneurs, startups, and multinational companies. Each free zone is usually built around a specific industry, providing tailored infrastructure, licensing options, and regulatory benefits to suit sector-specific needs.
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Across the UAE, there are more than 40 of these free zones, each offering full foreign ownership — a major advantage for international investors. In addition to this, businesses benefit from efficient services, advanced facilities, and simplified setup procedures. These zones are designed to remove common barriers to entry, helping companies save time, cut red tape, and operate with greater ease and confidence.
What Are Free Zones?
Free zones are specially designated areas offering foreign investors a compelling package:
- 100% foreign ownership
- Full repatriation of capital and profits
- No corporate or personal taxes, very low customs duties
- Streamlined, business‑friendly setup procedures
- Modern infrastructure and vibrant business communities
Key Free Zones in Dubai
Jebel Ali Free Zone (JAFZA)
Founded in 1985, JAFZA is one of the world’s largest free zones. It hosts over 9,500 companies spanning logistics, manufacturing, trading and real estate. Strategically located next to Jebel Ali Port, Al Maktoum and Dubai International Airports, it handles trade through 150 global ports — contributing significantly to Dubai’s GDP and attracting 32% of FDI.
Dubai Airport Free Zone (DAFZ)
Established in 1996, DAFZ is home to over 2,300 businesses across 20+ sectors, employing around 17,000 professionals. Located adjacent to Dubai International Airport, it offers duty‑free setup, full ownership, repatriation and world‑class facilities.
Dubai Silicon Oasis (DSO)
Since 2004, DSO has been the go‑to hub for tech companies, offering serviced offices, industrial land, warehousing and R&D facilities within a vibrant residential community.
Dubai Studio City
Launched in 2005, this zone caters to TV, radio and film production, including music, animation and post‑production. It provides studios, workshops, offices and storage tailored for media professionals.
Dubai CommerCity
The first free zone dedicated solely to e‑commerce, CommerCity supports brands operating across the MENASA region. It’s split into business, logistics and social clusters, offering warehousing, last-mile delivery, e‑commerce tech and customs advisory.
Dubai Outsource City
Founded in 2007, this zone focuses on outsourcing services — from call and data centres to warehousing — and includes built‑in support for licensing, registration and visa processing. It’s also known for hosting workshops and community-building events.
Dubai Science Park
This Al Barsha South zone supports scientific research, innovation and laboratories. It’s home to hundreds of companies and 3,000+ professionals across biotech, life sciences and environmental technologies.
Dubai Healthcare City (DHCC)
Opened in 2002, DHCC is dedicated to medical services, education and research. It features hospitals, clinics, diagnostic facilities, medical universities and wellness services, drawing medical tourists and becoming a healthcare innovation centre.
Dubai International Financial Centre (DIFC)
Established in 2004, DIFC is a finance-focused zone regulated by its own authority and courts. Covering banking, insurance, asset management and fintech, it offers English-language common-law framework and 50-year tax guarantees. It now hosts over 3,000 firms.
Meydan Free Zone
Born in 2009, Meydan supports more than 2,500 business activities ranging from e‑commerce and media to real estate. Located near major logistics hubs, it offers serviced offices, residences, and partnerships with companies like Aramex, Noon, and leading banks.
Why Register in A Free Zone?
- 100% ownership without a local partner
- Tax-free environment and low customs duties
- Simplified and fast incorporation process
- Access to global markets via ports, air, digital & financial networks
- Comprehensive support services and formal infrastructures
- Thriving communities of like-minded businesses
Final Thoughts
Dubai offers a rich ecosystem of free zones, each optimised for a different industry, purpose and stage of growth. Whether you're in logistics, media, healthcare, finance, or cutting-edge tech, there's a zone designed to support your strategy. The key is aligning your business activity, space and connectivity needs with the right free zone, tax advantages, top-tier facilities and a supportive environment tailored for success.
Looking for more than just a company setup? Talk to us about full-service relocation and advisory.
Want a more detailed explanation of freezones? Download our Relocation Guide.
The UK's non-dom tax regime has undergone one of its biggest overhauls in recent history—and the ripple effects are already being felt. With new rules kicking in from April 2025, the Government hoped for a revenue boost. Instead, it’s seeing an exodus of high-net-worth individuals. So, what’s really going on - and more importantly, what should you do about it? What Has Changed? Chancellor Rachel Reeves has scrapped the long-standing "non-dom" (non-domiciled) tax status. Under the new rules: Anyone living in the UK for more than four years will now pay UK tax on their worldwide income and gains. Inheritance tax will also apply globally for long-term residents. Transitional reliefs are being phased in, but the long-term direction is clear: the UK is no longer the tax haven it once was for international wealth. What’s the Impact? Far from delivering the forecasted £3 billion in annual revenue, the policy may actually cost the Treasury money. Why? More than 4,400 directors of UK businesses have already left in the past year. Up to 40% of non-doms are expected to follow. High-profile individuals - such as steel magnate Lakshmi Mittal - are reportedly eyeing exits. If even a quarter of non-doms leave, analysts suggest the government could lose £12 billion instead of gaining revenue. A Possible Policy U-Turn? Faced with this unexpected blowback, the Chancellor is now reconsidering parts of the policy: Inheritance tax rules for non-doms may be softened. A longer transition period for bringing overseas funds into the UK at reduced rates is on the table. New proposals are circulating, from tiered tax bands to repatriation incentives. Why This Matters to You If you're a non-dom, an international business owner, or someone with global assets tied to the UK, this is a crucial time to: Review your tax residency and exposure Reassess inheritance and estate planning Understand your options for relocating or restructuring wealth How Mosaic Chambers Group Can Help At Mosaic Chambers Group, we specialise in helping clients navigate precisely this kind of legal and fiscal uncertainty. Our team offers: Expert advice on UK tax residency and non-dom reforms Tailored inheritance tax planning International structuring solutions Ongoing support as the rules evolve Whether you're already planning a move abroad or simply looking to future-proof your wealth, we’re here to help you make confident, informed decisions. Final Thoughts The non-dom landscape is changing fast, and with more tweaks likely to come, staying ahead of the curve is essential. At Mosaic Chambers Group, we bring clarity to complexity - so you can focus on what matters most. Need advice or a personalised consultation? Get in touch with us today.
Real Estate Investment Trusts, better known as REITs, have become an increasingly popular investment vehicle in the UAE. They offer attractive income returns, diversification, and access to high-quality real estate without the hassle of direct property ownership. Until recently, the UAE tax treatment of REITs wasn’t crystal clear under the new corporate tax regime introduced in 2023. Thankfully, that has now changed. In May 2025, the UAE’s Federal Tax Authority (FTA) released new clarifications specifically aimed at REIT investors, outlining how corporate tax applies and under what conditions REITs can continue to enjoy tax exemptions. Here’s what this means if you invest in REITs, manage a REIT structure, or advise clients who do. What Is a REIT? Let’s start with the basics. A Real Estate Investment Trust is a company that owns or finances income-producing real estate. REITs pool money from multiple investors and distribute the rental income as dividends. UAE REITs are regulated under Emirates Securities and Commodities Authority (SCA) guidelines and are designed to offer tax-efficient exposure to real estate, particularly in Dubai and Abu Dhabi. Corporate Tax in the UAE: A Quick Recap As of 1 June 2023, the UAE levies corporate tax at 9% on taxable income exceeding AED 375,000. While this doesn’t apply to personal income, investment structures—like REITs—fall within the scope of corporate taxation. That raised a big question for investors: Will my REIT distributions now be taxed? The FTA’s new clarification helps answer that. FTA Clarification: When Are REITs Exempt from Corporate Tax? The FTA has confirmed that REITs can qualify for tax exemption, but only under specific conditions. These include: 1. REIT Must Be a Qualifying Investment Fund To qualify, the REIT must meet the definition of a Qualifying Investment Fund under the Corporate Tax Law. That means: The main activity must be investing in real estate. The fund must be widely held and regulated. There must be diversification in the portfolio. 2. Ownership Thresholds Must Be Met The FTA requires that no single investor (other than a governmental entity) holds more than 50% of the REIT. This is designed to ensure that REITs remain publicly accessible, rather than acting as tax shelters for large private investors or families. 3. Regulatory Approval & Oversight The REIT must be regulated by a competent authority such as the SCA or the Dubai Financial Services Authority (DFSA). Self-managed or unregulated structures will not qualify. 4. Income Distribution Requirements REITs must distribute at least 80% of their annual income to investors. This ensures that the tax benefit is passed on through regular distributions, rather than stockpiling profits inside the structure. What This Means for REIT Investors If you invest in a qualifying UAE REIT, your dividend income remains tax-free at the REIT level—just as before. However: If your REIT doesn’t meet the FTA’s exemption criteria, its profits may now be taxed at 9%. REITs may need to adjust their ownership structure, governance model, or payout ratios to retain their tax-exempt status. This is particularly relevant for family offices, HNW individuals, and private real estate funds who may have previously relied on lightly structured or bespoke REITs. Practical Steps for REIT Managers and Investors Review REIT compliance with the exemption criteria, especially ownership and distribution policies. Structure new REITs carefully to meet FTA conditions from the outset. Audit governance and regulation, ensure your REIT is fully licensed and externally overseen. Inform investors proactively if their REIT is making changes to retain tax exemption status. Final Thoughts The UAE’s updated REIT tax guidance is good news for most investors, but only if the REIT ticks all the right boxes. If you’re managing a REIT, investing in one, or thinking about setting one up, it’s essential to get the structure right. That’s where we come in. Contact our Dubai or UK office today for tailored advice on structuring tax-efficient real estate investments under UAE law. Whether you're a REIT manager, property investor, HNW individual, or adviser working with clients in the real estate sector, we can support you with practical, commercially focused guidance. We're also open to collaboration with introducers and partners who need expert support in this area.