Free Zones In UAE Attract Global Business
The United Arab Emirates is helping stimulate business by allowing free zones, which are designed to reduce bureaucratic involvement with setting up new commercial ventures. These free zones in UAE are making it easy for entrepreneurs from around to globe to establish new enterprises. in Abu Dhabi. Logistics and media are two of the leading industries that are moving to the area.
Designed to encourage foreign investors to diversify their investments with minimal government red tape, the new businesses still must be approved by The Free Zone Authority (FZA), which issues licenses. But the procedures for establishing a business are still much less complicated than starting a new business in the United States.
The free zones allow foreign businesses to sell merchandise from other countries in the UAE without paying duties or taxes, although certain merchandise is prohibited. Re-exporting international merchandise from the UAE can also be done without duty requirements as long as long as the business complies with export laws and procedures in the UAE.
The Abu Dhabi government supports new business establishments in the free zones and stay focused on preserving low cost business conditions. One of the main advantages of free zones is the government allows foreign businesses to retain 100 percent ownership instead of partnering with existing local businesses. A major development within Abu Dhabi is the Khalifa Industrial Zone, which is between Dubai and Abu Dhabi. It’s an era where a new transportation infrastructure is being developed designed for consumers to have easy access to air, rail and sea travel.
Abu Dhabi Airport Business Park is another free zone project, constructed within Abu Dhabi International Airport. The project covers 7 million square miles and will be set up as a logistics facility. Another free zone project is Twofour54, which will be a media free zone in Abu Dhabi, assigning the Media Zone Authority with an influential role in Arabic media. This media operation will include participation from the Financial Times, BBC, CNN and Reuters.
Regulation will allow three different types of operations in free zones. A company can either be set up as a Free Zone Limited Liability Company (FZLLC), a freelance licensee or it can be a new branch of an existing company. The UAE has become the new haven for offshore businesses looking for a zero tax environment.
The UAE has one of the strongest and most stable economies in the Middle East, even during the recession. The UAE was recently rated the Gulf’s top trade logistics server-provider by the World Bank. Due to limited regulations and an English speaking talent pool, Dubai has become one of the top outsourcing centers of the world. It’s a well run modern city where the crime rate is also conspicuously low.
Dubai Outsource Zone is an area devoted to tax free outsourcing. This continuously growing industry includes skilled workers that are being tapped by nations such as Pakistan, Jordan and the Philippines. Dubai’s growing economy has also attracted the presence of U.S. corporations such as IBM, Microsoft and Oracle in Dubai Internet City. Free zones in UAE are expected to continue to draw more companies from all over the world as their location is a hub between major markets in Europe, Africa, Asia, Russia and surrounding Gulf countries.