In today’s competitive global market, every advantage counts. The United Arab Emirates has positioned itself as one of the world’s most attractive destinations for international businesses, not only for its strategic location, but also for its Designated Free Zones.
Recognized under Federal Decree-Law No. 8 of 2017 on VAT, these zones offer unique tax and regulatory benefits that can significantly reduce costs and improve business efficiency.
Accounting & Bookkeeping Services in Dubai
A Designated Free Zone is a free zone specifically identified by the UAE government through Cabinet Decisions under VAT law. Not all free zones qualify only those that meet certain conditions and are formally recognized.
Key Features:
For services, the standard UAE VAT rules apply (unless exempt or zero-rated under other provisions).
Regulatory Clarity – Knowing which zones qualify helps businesses avoid penalties and stay compliant.
Not all activities in a Designated Free Zone qualify automatically. To benefit from VAT relief, businesses must ensure:
Reference: FTA VAT Guide on Designated Zones (VATGDZ1)
Designated Zones | To | Effective From | المناطق المحددة |
Free Trade Zone of Khalifa Port | 01/01/2018 | المنطقة التجارة الحرة لميناء خليفة | |
Abu Dhabi Airport Free Zone | 01/01/2018 | المنطقة الحرة بمطار أبوظبي | |
Khalifa Industrial Zone | 01/01/2018 | منطقة خليفة الصناعية | |
Al Ain International Airport Free Zone | 18/06/2018 | المنطقة الحرة بمطار العيــن الدولــي | |
Al Butain International Airport Free Zone | 18/06/2018 | المنطقة الحرة بمطار البطين الدولــي |
Designated Zones | To | Effective From | المناطق المحددة |
Jebel Ali Free Zone (North-South) | 01/01/2018 | المنطقة الحرة لجبل علــي (شمال – جنوب) | |
Dubai Cars and Automotive Zone (DUCAMZ) | 01/01/2018 | منطقة العوير الحرة للسيارات دوكامز | |
Dubai Textile City | 04/04/2021 | 01/01/2018 | مدينة دبي للأقمشة |
Free Zone Area in Al Quoz | 01/07/2021 | 01/01/2018 | المنطقة الحرة فــي منطقة القوز الصناعيــة |
DAFZA Industrial Park Free Zone – Al Qusais | 01/01/2018 | منطقة القصيص الصناعية دوفزا | |
Dubai Aviation City | 01/01/2018 | مدينة دبي للطيران | |
Dubai Airport Free Zone | 01/01/2018 | المنطقة الحرة فى مطار دبي الدولــي | |
International Humanitarian City – Jebel Ali | 18/06/2018 | المدينة العالمية للخدمات الإنسانية – جبل علي | |
Dubai CommerCity | 01/01/2021 | دبي كومبــرسيتي |
Designated Zones | To | Effective From | المناطق المحددة |
Hamriyah Free Zone | 01/01/2018 | المنطقة الحرة الحمرية | |
Sharjah Airport International Free Zone | 01/01/2018 | المنطقة الحرة فى مطار الشارقة |
Designated Zones | To | Effective From | المناطق المحددة |
Ajman Free Zone | 01/01/2018 | منطقة عجمان الحرة |
Designated Zones | To | Effective From | المناطق المحددة |
UAQ Free Trade Zone – Ahmed Bin Rashid Port | 01/01/2018 | منطقة التجارة الحرة بأم القيوين فى ميناء احمد بن راشد | |
UAQ Free Trade Zone – Sheikh Mohammed Bin Zayed Road | 01/01/2018 | منطقة التجارة الحرة بأم القيوين – علــى شارع الشيخ محمد بن زايد |
Designated Zones | To | Effective From | المناطق المحددة |
RAK Port Free Zone | 01/01/2018 | المنطقة الحرة ميناء رأس الخيمة | |
RAK Maritime City Free Zone | 01/01/2018 | المنطقة الحرة مدينة رأس الخيمة الملاحية | |
RAK Airport Free Zone | 04/07/2019 | 01/01/2018 | المنطقة الحرة بمطار رأس الخيمة |
Al Hamra Industrial Zone –Free Zone | 04/07/2019 | منطقة الحمرا الصناعية – منطقة حرة | |
Al Ghail Industrial Zone – Free Zone | 04/07/2019 | منطقة الغيل الصناعية – منطقة حرة | |
Al Hulaila Industrial Zone – Free Zone | 01/01/2018 | منطقة الحليلة الصناعية – منطقة حرة |
Designated Zones | To | Effective From | المناطق المحددة |
Fujairah Free Zone | 01/01/2018 | منطقة الفجيرة الحرة | |
Fujairah Oil Industry Zone (FOIZ) | 01/01/2018 | منطقة فويز |
Tax policies are shifting worldwide. For example, in the United States, proposed reforms such as a 25% outsourcing tax could make international operations costlier.
This is why many firms are looking to the UAE as a safer, more cost-efficient base.
To understand this global shift, explore our related analysis here: US 25% Outsourcing Tax: Why Firms Are Moving to UAE Free Zones.
At The Capital Zone, we guide businesses to:
✔Select the right Free Zone.
✔Structure VAT-compliant operations.
✔Connect with legal, financial, and banking partners.
✔Build sustainable global strategies.
The UAE is not just a hub — it’s a gateway to global growth. Whether your business is in the Middle East, Europe, or the United States, setting up in a UAE Designated Free Zone gives you strategic advantages.
Dubai Free Zones offer 100% foreign ownership, zero personal income tax, simplified business setup, and full repatriation of profits. With Capital Zone, you also get expert guidance on licensing, registration, and compliance.
Yes. Different Free Zones specialize in various industries such as trading, technology, logistics, and services. Capital Zone assesses your business model and recommends the most cost-effective and suitable Free Zone.
The process usually takes 3–7 working days, depending on the Free Zone and required approvals. Capital Zone handles all documentation and government liaison to ensure a smooth, hassle-free setup.
In most cases, no physical presence is required. Capital Zone manages the process remotely, although certain Free Zones may require a visit for signing documents or opening a bank account.
Contact our team of financial experts for personalized assistance and support.
