A comparison of free zones in Dubai

Dubai's free zones have been pivotal in transforming the city into a global business hub. To date, there are more than 50 free trade zones in Dubai. These economic hubs, often clustered around sector-specific industries, each offer unique benefits, cost structures, and business advantages, making it essential to carefully evaluate and compare these aspects when considering the right one for your business setup.

This article provides an overview and broad comparison of some of the key aspects such as financial obligations, operational timelines, and permitted activities across prominent free zones including Dubai International Financial Centre, JAFZA, Dubai Media City, Dubai Silicon Oasis, and Dubai Healthcare City.

Cost Structures of the Dubai free zones

Cost variations across the free zones in Dubai are significant and tailored to attract diverse business types. 

For instance, the Dubai International Financial Centre typically involves higher setup costs which reflect its status as a leading global financial centre. These can be upwards of AED 200,000 depending on the type of licence required, office space specifications, and the scale of operations planned within the zone.

In contrast, free zones such as Dubai Silicon Oasis and Dubai South offer more affordable options with packages starting from AED 50,000, designed to support tech startups and small businesses with limited capital.

JAFZA presents a different pricing model where setup costs can start from AED 100,000, but with extensive warehouse and office space options that justify the expense for manufacturing and logistics giants. 

Additionally, setup fees, annual licensing costs, and variable leasing rates across zones like Dubai Media City (starting from AED 70,000) and Dubai Healthcare City (starting from AED 80,000) can influence budgeting decisions significantly.

Processing Time Variances for Dubai free zones

In terms of the time it takes to set up a business, from the initial application to actually receiving the business licence. This can also vary markedly across free zones. 

JAFZA and Dubai Airport Free Zone, for example, boast rapid processing times, often completing registrations within 1-2 weeks thanks to streamlined procedures. 

While on the other hand, a set up in Dubai International Financial Centre may require up to a month due to rigorous compliance and vetting processes and the relatively more complex business structures that tend to be found there.

Dubai Media City and Dubai Silicon Oasis are other examples which offer relatively quick setups, typically ranging from two to three weeks thanks to their optimised procedures which encourage quick turnovers and minimise downtime for businesses.

Permitted Activities and Industry Specialisation in Dubai free zones

Most of the free zones in Dubai are clustered around specific industries to create synergistic environments that enhance collaboration and innovation. This strategic grouping helps companies leverage shared resources, industry-specific infrastructure, and networking opportunities. 

Dubai Media City, for example, is renowned for its world-class facilities tailored for media and advertising firms, offering specialised licences that cover everything from film production to event management. 

Dubai Design District (D3) is for businesses in the art, fashion, and design business, and has a close proximity to downtown’s largest shopping mall in the world.

JAFZA is optimised for trade and logistics, allowing activities such as cargo handling, distribution, and manufacturing with facilities that include ready-to-use storage and manufacturing sites. 

Dubai Healthcare City specialises in healthcare and pharmaceuticals, providing a regulated environment with necessary approvals for medical practices, research, and drug development. 

Dubai Academic City Free Zone (DIAC) is the biggest education and academia activity free zone, acting as a hub where institutions can set to become leading educational centres.

Dubai Multi Commodities Centre (DMCC) is one of Dubai’s most well-known free zones and is known for companies establishing to form a commodity marketplace. 

Dubai Silicon Oasis excels in IT and electronics, where businesses can engage in software development, data centres, and biotechnology research under supportive regulatory conditions. 

Finally, Dubai International Financial Centre restricts its licences to financial services, including banking, asset management, and insurance, supported by a robust legal framework designed to facilitate global finance and trade.

Comparative Advantage and Strategic Focus of Dubai free zones

With such a diverse range of free zones in Dubai and each differing in key areas, selecting the right one for your business should involve a careful analysis of each zone’s offerings to ensure it aligns with your business objectives and operational needs.

DIFC not only offers a strong legal environment but also direct access to wealthy international markets, making it ideal for financial services. 

JAFZA excels in logistics and trade with its strategic location and robust facilities, ideal for manufacturing and shipping companies, while Dubai Silicon Oasis provides comprehensive support for tech innovations with state-of-the-art infrastructure.

Together, these varied environments highlight why Dubai remains a top choice for businesses looking to capitalise on specific market advantages in a globally competitive landscape.

How can Sovereign PPG help?

Establishing in Dubai involves a thorough understanding of local regulations and jurisdictions. The process, while rewarding, can be intricate and demands a significant investment of time and resources. This is where the expertise of a professional corporate services provider becomes invaluable.

Sovereign PPG offers unrivalled expertise in the UAE's legal and regulatory landscape and direct access to government bodies and regulatory authorities. We can guide you through every step of setting up your business in Dubai, from initial registration with the relevant authority to obtaining your trade licence and ensuring compliance with all local and international regulations.

If you need assistance with this or with any other related company setup, restructuring, local partner or PRO support matter in Abu Dhabi, Dubai, the wider UAE, Saudi Arabia, Bahrain, Oman or Qatar, then please do get in touch with us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us at SovPPG@SovereignGroup.com or complete the contact form below and we will be delighted to assist you.