UAE – Free Economic Zones (FEZ)

A successful solution for your business

UAE – Free Economic Zones (FEZ): A Successful Solution for Your Business
Unlocking Opportunities in the Heart of the Middle East

The United Arab Emirates (UAE) has established itself as one of the world’s most dynamic business destinations. A key driver of this success is the creation of Free Economic Zones (FEZs)—special business areas designed to attract international investors through world-class infrastructure, investor-friendly regulations, and exceptional economic incentives.

Moreover, The UAE’s removal from the Financial Action Task Force (FATF) grey list. On 23 February 2024, the FATF officially removed the UAE from its grey list. FATF praised the UAE’s “significant progress” and political will to sustain reforms.

With delisting, the UAE is no longer under FATF’s increased monitoring process.

Implications & Benefits

• Improved Reputation & Trust
• Removing the grey-list “stigma” helps restore confidence among global banks, investors, and counterparties.
• It signals to the world that the UAE is serious about aligning with international financial crime standards.

What Are Free Economic Zones?

Free Economic Zones are designated territories within the UAE that offer a unique regulatory environment separate from the mainland. They are tailored to support specific industries—from logistics and manufacturing to media, technology, and finance—providing businesses with the flexibility and freedom to grow globally.

Top UAE Free Zones

The UAE hosts more than 40 specialized Free Zones across its emirates. Some of the most prominent include:

Ras Al Khaimah Economic Zone (RAKEZ) – Cost-effective and versatile for SMEs and manufacturers.
Abu Dhabi Global Market (ADGM) – A premier international financial center.
Jebel Ali Free Zone (JAFZA), Dubai – A global trade and logistics hub.
Dubai Multi Commodities Centre (DMCC) – Ideal for commodities trading and innovation-driven businesses.
Sharjah Media City (Shams) – Perfect for creative and media enterprises.

A Strategic Gateway to Global Markets

The UAE’s strategic geographic position connects businesses to markets in the Middle East, Africa, Europe, and Asia. Combined with political stability, advanced infrastructure, and a pro-investment environment, the UAE’s Free Economic Zones offer the ideal foundation for companies seeking to expand internationally.

Establishing a business in a UAE Free Economic Zone is more than just an investment decision—it’s a strategic move toward sustainable growth and global success. With unparalleled advantages, easy setup, and access to international markets, the UAE continues to prove that its Free Economic Zones are a successful solution for businesses worldwide.

Key benefits of establishment of a company in the Free Economic Zone of the UAE

Setting up a company in a UAE FEZ brings multiple benefits, including:

100% Foreign Ownership
Enjoy complete control and ownership of your business without the need for a local partner or sponsor, which is a requirement for mainland companies.

Tax Advantages
Zero Corporate Tax: Most FEZs offer tax exemptions for up to 50 years, with renewable terms.
Zero Personal Income Tax: No personal income taxes for business owners or employees.
No Import or Export Duties: Duty-free trade within the zone and to global markets, reducing costs on goods and services.

Full Repatriation of Profits and Capital
No restrictions on transferring profits, capital, or dividends out of the country, offering complete financial flexibility.

Simplified Company Setup and Licensing
Fast-track registration and easy licensing processes, often completed within days, enabling businesses to start operations quickly and with minimal red tape.

Streamlined Visa Process
Quick and simple visa procedures for employees, owners, and their families, allowing easier mobility and residency for international staff.

World-Class Infrastructure
Access to state-of-the-art facilities, high-quality office spaces, advanced telecoms, high-speed internet, and excellent logistics, including proximity to ports and airports for efficient import/export operations.

Access to Global Markets
The UAE’s strategic location between East and West, coupled with advanced logistics and trade facilities, makes FEZs the ideal hub for international trade and business expansion.

No Currency Restrictions
Companies in FEZs can deal in any currency, making it easier to engage in international transactions and avoid fluctuations in exchange rates.

Protection of Intellectual Property
UAE law ensures strong protection of intellectual property rights, ensuring that your innovations, trademarks, and patents are safeguarded.

Industry-Specific Incentives
Many Free Zones cater to specific industries (e.g., media, technology, manufacturing, health, finance), providing specialized services, equipment, and networks tailored to those sectors.

No Exchange Control Regulations
Unlike other regions, UAE Free Zones impose no exchange controls, offering businesses the freedom to manage their operations and finances without restrictions on foreign currencies or cross-border transactions.

Business-Friendly Regulations
Each Free Zone operates under its own set of simplified regulations, offering flexibility in business activities while reducing the bureaucratic burden that is common in mainland setups.

Attractive Recruitment and Talent Pool
Access to a large, skilled, and diverse workforce, especially in specialized industries, thanks to the UAE’s cosmopolitan environment and competitive salaries. Employees can also benefit from easy labor laws and immigration policies.

Economic Impact
Easier access to correspondent banking: Some banks may have restricted services or imposed higher costs when the UAE was under grey-list status. Delisting could reverse that.

Lower transaction costs: There may be fewer “enhanced due diligence” requirements for flows in and out of the UAE, potentially reducing compliance costs and making cross-border payments cheaper.
The National

Boost to foreign direct investment (FDI) and trade: With stronger AML/CFT frameworks, the UAE becomes more attractive for international capital.
The National

Sustained International Cooperation
Maintaining improved AML/CFT standards helps the UAE deepen its cooperation with other jurisdictions (mutual legal assistance, extradition, intelligence sharing).

It strengthens the UAE’s role as a global financial hub with credible regulatory governance.

The UAE’s removal from the Financial Action Task Force (FATF) grey list is a significant development for the country’s business environment, and it brings several benefits for companies that are registered or operating in the UAE.

The UAE’s removal from the FATF grey list marks a new chapter for businesses operating within the country, with enhanced access to international markets, improved financial services, and a more secure business environment. Whether you’re a startup, SME, or multinational company, the UAE’s upgraded status offers greater opportunities for growth, investment, and global business expansion.

If you’re considering expanding or establishing your business in the UAE, now is an ideal time to take advantage of these new benefits.