Comparison of Different UAE Free Zones

Free zones in the UAE can either be general-purpose or industry-specific. Industry-specific free zones house companies specializing in designated fields of business. As part of an industry-specific free zone, you have the opportunity to collaborate with other companies in your domain. Doing business in such an environment can provide ample networking opportunities with fellow entrepreneurs and innovators in your field. Furthermore, industry-specific free zones organize regular workshops, conferences, and training programs for entrepreneurs. It must be noted that in most cases, it is possible to set up companies not belonging to the industry to which the free zone focusses upon. For example, free zones
like Shams cater mainly to the media industry but do allow setting up of non-media businesses as well.

General-purpose free zones are open to companies of all industries. You may opt for these free zones if the industry your business belongs to does not have a dedicated free zone. These free zones may be the ideal option for you if you wish to stay away from competitor businesses and be surrounded by companies belonging to different industries. Though you will lose out on the focus you receive from industry-specific free zones, you will have the benefit of catering to a diverse clientele.

Let’s explore examples of various industry-specific and general-purpose free zones across the UAE.

Dubai

1. Dubai International Financial Centre (DIFC)

DIFC is an industry-specific free zone that is dedicated to the financial sector and provides focused services and facilities for finance-related industries. It facilitates symbiotic relationships between banks, capital markets, insurance companies, and asset managers.

DIFC is ideal for sectors connected to finance and capital like banking, insurance, and asset firms. Located near Nasdaq Dubai, the DIFC has provided firms with direct access to the capital market.

Not only is DIFC one of the world’s leading financial free zones, but it is also one of the most stringently governed: its compliance framework is regulated by three distinct bodies. This strong regulatory structure provides a secure and compliant environment which is crucial for financial firms who want to tap into an international financial hub.

2. Dubai Multi-Commodities Centre (DMCC)

DMCC is a general-purpose free zone catering to most industries in the economic landscape. It is intended for international commodity trading. DMCC makes it possible for various industries to complement each other in the market and leads companies to share infrastructures and get connected.

DMCC is one of the oldest free zones in Dubai. It possesses a good location in the center of the city that is well connected to all the different ports and airports in Dubai. It comes with modern working spaces, customizable licenses, and backing for various sectors, which make it appealing if a company trades in commodities and engages in general merchandise.

3. International Free Zone Authority (IFZA)

IFZA is a general-purpose free zone and it does not have a special focus on an industry of interest, rather it accommodates all kinds of industries. This is helpful for a company of any form to start an establishment with definite flexibility options.

IFZA is popular for its low costs and low barriers to starting a business since it offers flexible visa terms and is easy to join. Being a free zone across sectors, it is simple for SMEs and start-ups with less regulatory difficulty making it among the most sought-after by the formal sector and acting as a solution for cost-related problems.

4. Meydan Free Zone

This free zone is a general-purpose free zone and serves firms from a wide range of industries. It provides sources that enable businesses to satisfy a range of requirements, which will possibly attract start-ups and SMEs due to the versatility provided.

Meydan Free Zone is open for companies across various industries but primarily for those that prefer a prime location in Dubai.

Located in a prime location, Meydan Free Zone offers excellent functional spaces such as individual offices, shared working places, and meeting rooms which again are suitable for start-ups and many small businesses.

Sharjah

1. Sharjah Publishing City (SPC)

SPC is a type of industry-specific free zone for specific industries focusing on publishing and media industries so that the necessary resources can be provided for these industries.

Located close to Sharjah and Dubai airports, SPC provides value-added setup options for publishing houses and media firms at comparatively lucrative costs. It has many types of offices available for businesses that can improve their efficiency of operations and enjoy an easy supply chain.

2. Sharjah Airport International Free Zone (SAIF Zone)

SAIF Zone is a multi-product-free zone with a focus on providing a general business environment for businesses from different industries with diverse configurations and structures. It is a ‘Designated Zone’, meaning it has specific rules for the application of VAT in the UAE.

SAIF Zone is relevant to a wide variety of industries, therefore, providing fully flexible office facilities and customized warehousing solutions.

Abu Dhabi Free Zone

1. Abu Dhabi Global Market (ADGM)

This is quite a specialized type of free zone with a focus on the finance industry and services. It provides targeted services and a strong list of affiliated financial service providers, which help finance professionals and enterprises develop synergies and novel solutions.

ADGM focuses mainly on the international financial sector, such as banking, asset management companies, and insurance firms. Its objective focuses on improving the context for business, be it in the financial or non-financial sectors and is oriented towards a rich variety of international companies.

Whether a company requires a specialized and sector-linked area or a multipurpose, all-encompassing space, UAE free zones offer a great proposition for businesses that wish to grow within the region. Contact InZone today to get assistance in making the right choice of choosing the perfect free zone for your business setup.