For the majority of foreign investors, it is necessary to understand the regulations of the 23 special economic zones in the UAE. The advantages of investing in the UAE free zones and special economic zones are mainly reflected in:

(1) There is no restriction on the shareholding ratio, and foreign capital can hold 100% of the shares;

(2) All capital and goods can be repatriated, and 100% of income and profits can be remitted back to the country;

(3) There is no minimum investment capital requirement;

(4) Shareholder liability is limited to paid-in capital;

(5) Exemption from corporate income tax (with time limit), personal income tax and import and export tariffs;

(6) Investors can enjoy long-term leases Lease rights (up to 25 years);

(7) Relatively simplified investment procedures, faster company establishment, easier access to legal, housing, immigration and other conveniences;

(8) Complete factory and storage facilities;

(9) Complete infrastructure, support services and communication conditions;

(10) Some free zones are exempt from VAT

Currently, 23 VAT-free and free zones are distributed in 7 emirates. Each free zone is managed by the emirate where it is located. Therefore, the specific advantages of different free zones depend largely on the policies of each emirate for free zones. At present, the economic management departments of Abu Dhabi and Dubai have allowed qualified free zone companies in the emirate to hold dual licenses and carry out UAE government procurement, project bidding and other businesses outside the free zone. The 23 free zones are:

First, Abu Dhabi

1. Free Trade Zone of Khalifa Port

2. Abu Dhabi Airport Free Zone

3. Khalifa Industrial Zone

4. AL Bateen Executive Airport Free Zoe

5. AL Ain International Airport Free Zoe

Second, Dubai

6. Jebel Ali Free Zone (North-South)

7. Dubai Cars and Automotive Zone (DUCAMZ)

8. Dubai Textile City

9. Free Zone Area in Al Quoz

10. Free Zone Area in Al Qusais

11. Dubai Aviation City

12. Dubai Airport Free Zone Zone)

13 Dubai International Humanitarian City

The Dubai Multi Commodities Centre (DMCC), located in the Dubai Free Zone in the UAE, was established in 2002. It is a global commodity trading center. Since 2005, DMCC has successively established commodity trading centers such as gold, diamonds, tea, and coffee. DMCC attracted 2,485 companies to settle in 2021, and the total number of companies has increased to more than 20,000. In 2021, DMCC has become one of the world's major commodity trading centers and has been named "Global Free Zone of the Year" by FDI magazine under the Financial Times for seven consecutive years.

Enterprises registered in the DMCC Free Zone can hold 100% of the company's shares and are exempt from personal income tax and corporate income tax. The minimum registered capital of a DMCC Free Zone company is 50,000 dirhams (13,613 US dollars). The registered capital must be deposited into the company's UAE account within 6 months after the business license is issued. There is no registered capital requirement for establishing a branch.

Third, Sharjah

14. Hamriyah Free Zone

15. Sharjah Airport International Free Zone

Fourth, Ajman

16. Ajman Free Zone

Fifth, Umm Al Quwain

17. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port

18. Umm Al Quwain Free Trade Zone on Shaikh Mohammad Bin Zayed Road

Sixth, Ras Al Khaimah

19. Ras Al Khaimah Free Trade Zone

20. Ras Al Khaimah Maritime City Free Zone

21. Ras Al Khaimah Airport Free Zone 7. Fujairah

22. Fujairah Free Zone

23. Fujairah Oil Industry Zone FOIZ