How to choose a free economic zone for business in the UAE

Before considering specific free zones, conduct an in-depth analysis of your target audience. Where are your potential customers located? Where are your competitors concentrated? Location affects access to the target market and logistics. For example, if your target audience is in Dubai, then the Jebel Ali FEZ may not be the best choice.

Not all economic zones are the same. Each of them specializes in certain sectors of the economy. For example, DMCC is ideal for media companies, while DIC is ideal for IT companies. Each of them has its own range of activities that can be registered. It is worth choosing an FEZ that matches the profile of your organization.

The level of infrastructure development, logistics, and availability of office space all play a decisive role for different types of companies. Some specialize in certain industries, providing specialized facilities and services. For example, for import-export activities, it is necessary to assess the logistics infrastructure: proximity to ports, airports, and major transport arteries. The availability of support services is also important: bank branches, service centers, etc.

The choice of location directly affects the availability of banking services. Some SEZs have close ties with specific banks, which can simplify opening an account and obtaining financing, while others, on the contrary, are considered “high-risk” among banks.

Compare the cost of licensing, government fees, approvals, and all related expenses in different free zones to choose the most optimal option. Keep in mind that the company will need to renew its license and related documents annually. It is also necessary to find out the cost of this process in advance.

The process of obtaining a license is one of the key stages. The actual activity must strictly correspond to that specified in the license. Each SEZ has its own licensing rules and procedures, which can vary significantly. Some offer simplified procedures and a wider range of licenses, while others have stricter requirements and a limited choice. It is worth carefully studying the types of licenses, document requirements, and the need for external approvals from regulatory authorities.

Free zones offer various solutions, from virtual offices to furnished office space. Some types of businesses also require retail and warehouse space. Accordingly, it is important to study the list of solutions offered by the free zone in advance to ensure a comfortable start to your business. Choose the option that suits your needs and budget.

Authorized capital requirements vary depending on the SEZ and type of activity. Some zones require a minimum authorized capital even without actual contribution, while others require higher amounts (for example, Dubai Silicon Oasis – AED 300,000). It is necessary to carefully study the requirements of different free zones and assess your financial capabilities. Underestimating the authorized capital can lead to problems in the further development of the business.

Obtaining visas for employees is an important aspect for many companies planning to work in the UAE. Therefore, it is worth paying special attention to the specifics of issuing visa quotas for companies in different free zones. Some of them have strict requirements for a real office for visa placement, while others only require a virtual one.

Compliance with accounting and reporting rules is a mandatory requirement for any company in the UAE. Each FEZ has its own accounting requirements, which must be taken into account when choosing a place of registration. Some require an annual audit in an official form, while others require more simplified reporting. Understanding the audit and taxation requirements will help you avoid problems with local authorities.