Free zones are developed to support economic reform; to act as pressure valves to alleviate growing unemployment; to serve as experimental labs for the application of new policies and approaches; and to attract FDI. The strategic location decision is driven by market potential and the growth of the market share; the proximity to the customer base; the quality and cost of labor, the quality of the transport network, and the incentives offered would be the key features of a free zone setup. UAE economy is clearly divided between the onshore sector , dominated by local business interests, with restrictions on foreign ownership, and the offshore sector which consists of a number of Free zones.
There are no taxes to speak of, on or offshore, but 100% foreign ownership and customs privileges make the free zones the most favorable locations in the Middle East for international operations. Free zones of UAE including Sharjah Airport International Free Zone (SAIF Zone), Jebel Ali Free Zone Authority (JAFZA), Dubai Airport Free zone Authority (DAFZA), Hamariyah Free zone Authority, Ajman Free Zone Authority, Ras Al Khaimah & Fujairah free zone Authorities.
The setting up of a business in Free Trade Zones is very beneficial to company owners as they have full control over business decisions with regards to their company as these zones are designated places in a country where foreign businesses are not governed by the local trade laws but instead is governed by the World Federation of Free Zones.
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