Jebel Ali Free Zone is located in Dubai, United Arab Emirates, and is considered one of the most prominent free zones in the world. It was established in 1985 with the aim of promoting economic growth and providing an enabling environment for business and industry. Jebel Ali Free Zone extends over an area of ​​more than 57 square kilometers, making it one of the largest free zones in the world. It is distinguished by its strategic location near Jebel Ali Port, which is one of the largest seaports in the world, which facilitates the movement of goods and international trade.

Jebel Ali Free Zone offers a wide range of benefits to investors, from full tax exemptions on personal income and profits to no duties on exports and imports. The region also has a developed infrastructure that includes advanced logistics facilities, equipped warehouses, and modern office spaces. In addition, the region provides direct access to major highway networks and international airports, enhancing easy access to global markets.

Economy in Dubai

Dubai occupied the forefront in the field of tourism, trade and shopping, and this is for many reasons, including the discovery of oil in Dubai and making it one of the most important main sources, which led to it being one of the richest countries and attracting many foreigners to it, as Dubai is characterized by an atmosphere that encourages the establishment of business there due to the calm political atmosphere in addition to Its geographical location, along with some laws that encourage establishing businesses there, as Dubai imposes a tax exemption law, which encourages many to start new businesses in the country.

Can free zone companies or foreign companies affiliated with the United Arab Emirates carry out their business within the UAE or own shares in other Emirati companies? Are there any restrictions? Companies holding a commercial or industrial license can only conduct their business within the free zone or outside the country.

Jebel Ali Free Zone

The meaning and definition of the term Jebel Ali Free Zone varies depending on the type of free zone, but in most cases the term free zone expresses a geographical area in which goods are preserved, stored, manufactured, traded and re-exported according to a known and specific customs system, but it is not subject to any customs duties. Free zones are also considered entities completely separate from the state’s laws, as they are not governed by the country’s trade laws and do not require a sponsor. Also, the company that is established in the free zone can be owned by a person of another nationality without the need for a UAE national partner.

The Jebel Ali Free Zone and in the Emirates in general are not subject to the laws that were established by the Ministry of Economy to regulate the commercial activities of companies, as this free zone in Dubai works to provide ownership freedom for commercial businesses, in addition to tax exemption and exemption from any customs duties, and these are advantages in the free zones. Making it an ideal and honorable interface for international companies that carry out many commercial activities. It is also an advantage that opening and establishing a company in Dubai and in the free zone does not require the presence of a partner or sponsor who is a citizen of the Emirates.

How to establish a company in the free zone

To establish a company in the free zone , you must follow the following steps:

• Find the right free zone: There are many free zones in Dubai and the UAE. Research and view information about different free zones, and choose those that match the needs and activity of your company.
• Preparing the required documents: Before establishing the company, you must prepare the required documents. These documents may include a copy of your passport, business plan, and details of shareholders and directors.
• Employing a legal advisor: It is preferable to seek the assistance of a local legal advisor who specializes in procedures for establishing companies in free zones. A legal advisor will help you understand local laws and regulations and ensure procedures are carried out correctly.
• Submitting a registration application: After preparing the required documents, the registration application must be submitted to the competent authority in the free zone. The application will include information about the company, its proposed activity and ownership structure.
• Payment of fees and licenses: When your registration application is accepted, you will be asked to pay the fees and costs associated with establishing the company and obtaining the necessary licenses.
• Establishing the company and signing contracts: After completing the legal procedures and paying the fees, you will be able to establish your company in the free zone. You will sign the necessary contracts and obtain official company documents.
• Compliance with legal obligations: Once the company is established, you must comply with legal obligations and local regulations, such as submitting annual financial reports and adhering to taxes and practical laws.

It is important to note that these steps are general, and specific requirements and procedures may vary depending on the chosen free zone and the type of company you intend to establish. Therefore, it is recommended to consult with our experts to obtain more detailed information on how to establish a company in the free zone

Documents required to establish a company in Jebel Ali Free Zone

If you wish to incorporate a company in the Jebel Ali area  of ​​Dubai, the required documents usually follow a pattern similar to the legal procedures in place in the emirate. The basic documents that you may usually need to establish a company in the Jebel Ali area are:

1. Incorporation application form: A company incorporation application form must be submitted, filled out and signed by the founders.
2. Copy of passport: Provide a copy of the passports of all founders and authorized directors of the company.
3. Bank account opening document: The relevant department in the free zone usually needs a copy of the bank account opening document for the company.
4. Company Agreement: A copy of the company agreement must be submitted which defines the organizational structure, objectives and basic terms of the company.
5. Financial report: In some cases, the free zone may require the submission of a financial report showing the ability to finance the company and implement planned activities.
6. Information about shareholders and directors: Detailed information about the relevant shareholders and directors of the company is provided.
7. Additional approvals and licenses: Some activities or industries may require special approvals or additional licenses from the relevant authorities.

 

Costs of establishing a company in Jebel Ali Free Zone

The costs of establishing a company in Jebel Ali can vary depending on several factors such as the type of company, the amount of capital required, the activities proposed, additional services required, etc. However, a rough estimate can be provided of the costs you may incur when establishing a company in Jebel Ali which are as follows:

• Licenses and registration fees: These fees include the payments necessary to obtain the necessary licenses and register the company, and these fees vary depending on the type of company, activity, and legal requirements.
• Necessary capital: Establishing a company requires providing the required capital in accordance with local laws, which may vary depending on the type of company.
• Legal Consultation Fees: You may need legal advice to guide you through the incorporation process and ensure full compliance with local laws and regulations.
• Rent and office costs: Companies must pay rent costs for an office in the Jebel Ali area, and this depends on the size of the space and location.
• Administration and operating costs: These costs include employee wages, office supplies, and other administrative services.
• Government taxes and fees: These can include taxes on profits, annual licensing fees, and other government-related fees.
• Insurance: The company may need to purchase various insurances such as property insurance and civil liability.

Advantages of establishing a company in the Dubai Free Zone

Establishing a company in Dubai Free Zone comes with many advantages and benefits that make it an attractive option for business. Here are some key advantages:

1- Tax exemptions:

Free zones in Dubai are exempt from income taxes for a period of up to 50 years. This means that companies located in the free zone do not pay corporate taxes on the profits made, allowing them to benefit from significant financial benefits.

2- Full ownership by foreigners:

In free zones, foreigners are allowed to own 100% of the company’s share, without the need for a local partner. This provides a significant advantage to foreign investors who want complete control over a company’s operations and decision-making.

3- Ease of establishment and operation:

The procedures for establishing a company in free zones are simplified and facilitated, which facilitates and accelerates the process of starting a business. Free zones also provide advanced infrastructure and support services such as ready-made offices, warehouses and logistics services, which contribute to facilitating operations.

4- Access to the regional market:

Dubai is a gateway to the Middle East and North Africa market, and attracts a large number of international companies. Thanks to their strategic location and advanced infrastructure, Dubai’s free zones facilitate trade and commerce with countries in the region and provide opportunities for growth and expansion.

5- Customs facilities:

Free zones in Dubai provide easy customs procedures and facilities for shipping and customs clearance. Advanced storage and distribution facilities are provided, which contributes to improving the smoothness of import and export operations.

Investment opportunities in Jebel Ali Free Zone

Jebel Ali Free Zone in Dubai is one of the most important economic centers in the UAE and the world, as it provides a favorable investment environment characterized by many opportunities and features that make it an attractive destination for investors. Below we review some of the investment opportunities available in Jebel Ali Free Zone:

 Manufacturing industries
Manufacturing industries are one of the main sectors in Jebel Ali Free Zone. There are ample opportunities to establish production and manufacturing plants in areas such as electronics, chemicals, plastic products, and metals. The advanced infrastructure and logistical support available makes it easy to start production operations.

 Logistics Services
Thanks to the presence of Jebel Ali Port, one of the largest seaports in the world, logistics services are among the most prominent investment opportunities. Investors can create logistics companies that provide transportation, warehousing, and distribution services locally and internationally. The area also provides equipped warehouses and advanced storage spaces.

 E-commerce
With the increasing demand for e-commerce, Jebel Ali Free Zone provides an ideal environment for companies operating in this sector. Investors can create advanced e-commerce platforms or distribution centers that support electronic operations. The strategic location and advanced logistics infrastructure enhance the efficiency of operations.

 Petrochemicals
The region offers investment opportunities in the petrochemical sector, thanks to its proximity to raw material sources and specialized infrastructure. Investors can establish petrochemical plants and benefit from the logistical support and services available.

Technology and Innovation
Jebel Ali Free Zone encourages investments in the technology and innovation sector. Technology companies can establish R&D centers, data centers, and software development companies. The region supports the innovative environment by providing incentives for startups and technology companies.

Financial Services
Investors can establish companies that provide various financial services such as banks, insurance companies, and investment companies. The region provides a flexible regulatory environment that supports the growth of this type of business.

 Tourism and Entertainment
Jebel Ali Free Zone provides investment opportunities in the tourism and entertainment sector. Investors can develop hotel projects, resorts, and entertainment facilities to attract tourists and visitors.

 Education and training
Specialized educational and training institutions can be established that serve the educational and training needs of workers in the free zone. The region provides a suitable environment for developing vocational and educational training programs.

 Renewable Energy
Renewable energy is an emerging sector that provides great investment opportunities. Investors can develop solar energy projects, wind energy, and other renewable energy sources.

Healthcare
Investors can establish health facilities such as hospitals, clinics, and specialized healthcare centers. The region provides a supportive environment for the development of high-quality health services.

Types of licenses available in Jebel Ali Free Zone

In Jebel Ali Free Zone (JAFZA), multiple types of licenses are available to meet the needs of businesses of all types. Here are the main types of licenses available at JAFZA:

1. Commercial licenses: Commercial license: allows conducting commercial activities, such as selling products or providing commercial services. This type of license includes companies that deal in wholesale or retail trade.
2. Industrial licenses: Industrial license: issued to companies that wish to practice industrial activities, such as manufacturing and production. This license includes companies that carry out manufacturing, production and transformation operations.
3. Service licenses: Service license: intended for companies that provide certain services without the need to manufacture products. This includes providing consulting, financial services, technology services, and other services.
4. General Licenses: General Commercial License: allows companies to practice various commercial activities that include many products and services. This license is typically used by companies that intend to engage in a wide range of business activities.
5. Professional licenses: Professional license: issued to companies that provide specialized professional services, such as law, accounting, and engineering consulting.
6. Sub-licenses: Sub-license: issued to companies that wish to open additional branches in the Jebel Ali Free Zone, which facilitates the expansion of the business without the need to obtain a new license.
7. Joint licenses: Joint license: issued to companies that wish to cooperate or partner with other companies in the same region. This license allows companies to operate under the same license and manage joint activities.
8. Specialized licenses: Specialized licensing: focuses on special activities that require specific licenses based on the nature of the activity. Such as licenses for the medical, educational, or cultural sectors.

In conclusion, Jebel Ali Free Zone in Dubai summarizes a set of advantages and business opportunities that make it an ideal destination for establishing companies. This free zone provides advanced customs facilities and high-quality infrastructure, which helps facilitate import and export operations and storage of products. Thanks to full foreign ownership and attractive tax exemptions, companies can benefit from a flexible business environment suitable for expansion and growth.

In addition, Jebel Ali Free Zone is a technology and innovation hub, focusing on industrial, logistics and high-tech sectors. The free zone provides opportunities for cooperation and partnerships with leading companies in these industries, thus promoting innovation and business development.

In short, Jebel Ali Free Zone is a wonderful investment destination that provides an encouraging and facilitating environment for establishing companies and expanding businesses. Advanced customs facilities, full foreign ownership and tax exemptions, coupled with advanced infrastructure and networking opportunities with industry-leading companies, provide a range of exciting and favorable investment opportunities.

Frequently asked questions about Jebel Ali Free Zone