The Emirate of Dubai is the second-largest Emirate of the United Arab Emirates. It is located on the Arabian Gulf coast and covers an area of about 4 thousand square km—about 5% of the total area of the Emirates. Despite its relatively small area, today Dubai is the largest financial and business center not only of the UAE but also of the whole Middle East. Dubai's economy is currently based primarily on international trade, logistics, financial services, tourism, technology, and e-commerce. The oil sector's share of the emirate's economy is relatively small.

Advantages of doing business in Dubai

There are several free trade zones in Dubai providing many advantages to foreign companies. The most attractive for international business is Jebel Ali Free Zone (JAFZA). This is the first free zone established in the UAE, located near Al Maktoum International Airport.

Companies registered in the Jebel Ali Free Zone enjoy preferential tax treatment. However, since 2023, the UAE has adopted a federal corporate tax rate of 9%. Free zone companies can benefit from a preferential tax regime (0%) provided they comply with the following requirements: Free zone companies can operate within their free zone and outside the UAE. Mainland operations typically require a distributor, an agent, the establishment of a separate mainland company, or obtaining the appropriate permit. Since 2021, UAE law allows foreign investors to own up to 100% of the shares of most mainland companies (depending on the type of activity). Besides, business registration in free zones has several other advantages:

• preferential tax regime, including the possible application of a 0% corporate tax rate for free zone companies subject to compliance with legal requirements;
• no restrictions on repatriation of profits and capital;
• free employment of foreign nationals;
• absence of currency restrictions and simplified customs procedures for international trade within the free zone regime;
• simple registration procedure.

Jebel Ali Free Zone, which is the largest FTZ of the UAE, is among the TOP-10 best international ports. It is the sales center for 5.5 thousand international and regional companies.

Companies registered in the FTZ must obtain a business license (e.g., trade, service, industrial, e-commerce, or other types required by the specific free zone). This license is valid for 12 months (in some cases, 2 or 3 years), with the possibility of renewal. Free zone companies in the Dubai free zone are permitted to open bank accounts in the Emirates to cooperate with local auditors, accountants, lawyers and consultants. Companies registered in the UAE free trade zones may hold meetings of shareholders and directors in the Emirates, lease office and warehouse space within the free zone, and, subject to compliance with the laws and regulations of the relevant free trade zone, purchase or lease real estate in permitted areas.

Besides JAFZA FTZ, there are also other free zones in Dubai:

• DAFZA – an ideal choice for companies which value efficiency of shipment of goods to different countries;
• TECOM – an international center of telecommunications, information technology, media and e-commerce;
• DUCAMZ – specialized in the export of second-hand vehicles;
• DGDP – a free zone that hosts international healthcare organizations;
• DHCC and DMCC – free zones, providing great benefits to jewelry companies.

There are over 40 free trade zones in Dubai and other emirates, each specializing in specific types of activities. Free trade zones permit foreign investors to obtain 100% ownership in a company and licensed activities conducted within defined geographical sectors internationally and domestically. 

Our business consulting organization is supporting all phases of registration of a business in the UAE. We will assist you in picking the best jurisdiction for company incorporation (free zone or mainland), provide assistance on administrative and registration processes, help you procure and renew licenses and residency visas, open corporate bank accounts as well offer outsourced accounting. We provide a variety of associated corporate and consulting services as well.

• Checked / Updated: 05.17.2026
• Published on: 07.27.2014
• Author: Andrey Melnichuk