Pros and Cons of a Free Trade Zone in Dubai

The Dubai government established the Free Trade Zones in the nation about 20 years ago to enhance the UAE market and restructure the economic system. The government took a trailblazing action in 1985 by creating the Jebel Ali Free Trade Zone in Dubai, which altered industrial regulation throughout the entire United Arab Emirates. In contrast to other Emirates, Dubai was focused on luring foreign investors and providing them with several unorthodox incentives.

This particular jurisdiction has played a significant role in recent years in diversifying the market sense and setting new standards for the country’s time-honored protocols. As a result, Dubai’s plan to establish numerous UAQ Free Trade Zones was successful, leading the other Emirates to join the group as well.

Having their authority under a plan

Every key business sector has its authority under the plan, which enables segregation to the fullest possible extent. In addition to this, the advantages in terms of taxation, total ownership, and fewest restrictions make it more alluring for business owners thinking about setting up shop in Dubai.

Additionally, the development bodies took care to produce convincing documentation for the steps involved in establishing a Free Zone enterprise. The Dubai government had everything figured out by implementing user-friendly and online procedures, whether it was registering a free zone firm in Dubai or choosing a specified location for your business kind.


  • Removes the requirement to partner with a citizen of the UAE.
  • Offers total possession because investors can own 100% of the business.
  • Special attention paid to appointments, expenditures, and processes.
  • Flexibility in the company’s operations and moves.
  • Advantages regarding taxes, customs, currency management, and more.
  • A single window system can be used to clear administrative services.
  • There are no limitations on participating in several activities.


Companies operating in Free Trade Zones are forbidden from engaging in any kind of domestic economic activity.

  • Because they are only permitted to conduct business worldwide, these businesses’; expansion options are constrained.
  • Although they are typically located in remote places, transportation and communication are improving the situation.

These pros and cons would help you understand the importance of establishing a free trade zone in the UAE.

To sum it up

Are you contemplating starting a business in Dubai? Your best bet would be to look forward to making the most of the opportunities available in the free trade zone. Rest assured that you would enjoy doing business in the most happening place in the UAE.

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