What is a free zone?
A free zone is a designated economic area run by its own authority, which licenses companies and sets local regulations. The UAE has around 40 free zones, many focused on specific sectors such as commodities, technology, media, logistics or finance.
Key advantages
- 100% foreign ownership of your company
- 0% customs duty on goods imported into the zone and on goods stored for re-export
- A 0% corporate tax rate on qualifying income for companies that meet the Qualifying Free Zone Person conditions
- Sector-focused ecosystems, often with fast, largely digital set-up
- Flexible premises, from flexi-desks to warehouses
Things to consider
- Free zone companies cannot sell directly into the UAE mainland market; local sales usually require a mainland distributor, branch or company
- The 0% rate applies only to qualifying income and requires real substance in the zone; other taxable income is taxed at 9%
- Visa allocations usually depend on your licence and office space
- Each zone sets its own permitted activities, rules and fees
Popular free zones in Dubai
Dubai alone has more than twenty free zones, including:
- DMCC — commodities, trading, technology and many other sectors
- Jebel Ali Free Zone (JAFZA) — logistics, trade and industry
- Dubai Airport Free Zone (DAFZA) — aviation-linked trade and services
- Dubai International Financial Centre (DIFC) — financial services, with its own legal framework
- Dubai Internet City, Dubai Media City and Dubai Silicon Oasis — technology and media
- Meydan Free Zone, Dubai South and Dubai CommerCity — services, logistics and eCommerce
Other emirates add further options, including free zones in Sharjah, Ajman, Umm Al Quwain and Ras Al Khaimah, and ADGM in Abu Dhabi.
Is a free zone right for you?
Often yes, if your customers are mainly outside the UAE or in other free zones, if you trade internationally, or if you need a regional holding or services company. If you plan to sell mostly to customers in the UAE, a mainland company is usually the better fit.
How ETURA helps
We compare zones against your activity, customers, visa needs and budget, then manage the set-up end to end — licence, registration, visas and banking readiness.
This page provides general information only and is not legal, tax or immigration advice. Requirements are set by the relevant authorities and may change; we confirm the current position for your case at assessment.
Last reviewed: November 2026