The UAE’s Free Economic Zones (FEZ) and Their Influence on the Country’s Economy

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Today, company incorporation in UAE is not particularly difficult. You can choose a free economic zone suitable for your business, for example, Ajman (see Ajman free zone activity list), register your company there and start activities within 1-2 days!

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Today, company incorporation in UAE is not particularly difficult. You can choose a free economic zone suitable for your business, for example, Ajman (see Ajman free zone activity list), register your company there and start activities within 1-2 days!

But how do free economic zones affect the UAE economy? How is it beneficial for the country to maintain them?

A Bit of the UAE’s History

Until about half of the twentieth century, the Emirates were mainly represented by small towns and fishing villages. When an oil boom started in the 1960s, everything changed. Oil refineries began to be built in the country, and multiple jobs appeared. With the rise in the price of black gold, the country’s profit grew. And at some point, Sheikh Zayed decided that it was impossible to keep the country dependent on world oil prices. A need to find other ways to develop and maintain the UAE economy popped up. And that was how FEZs appeared.

Features of FEZ in the UAE

For the first time, a FEZ was created by the ancient Greeks. But it is the UAE that becomes the number 1 choice for entrepreneurs who choose a free economic zone for their business.

What do business owners like the UAE for?

• The country is located at the intersection of trade ways;
• There are no taxes on profits and other state duties;
• Excellent infrastructure, modern and convenient building design;
• A large selection of workers with different skill levels and relatively low salaries;
• Inexpensive energy;
• High privacy;
• Excellent transport hub with many international ports and airports;
• You can do business in any area, except for banking and insurance;
• By opening a company, including offshore, you can open an account with a reliable bank while enjoying good liquidity;
• A quick and fairly simple registration procedure;
• The stable economy and political situation;
• No levers of pressure on the UAE authorities from other countries.

Of course, you can find a few drawbacks, for example, the need to legalize all your documents. But they all fade compared to the advantages of free economic zones in the UAE.

Think, weigh all pro et contra and make the right decision for yourself by opening a business in a FEZ!