Doing business in
the United Arab Emirates
2014
Contents
Page
Foreword
3
Introduction
4
Country Profile
5
Business entities
8
Taxation
11
Regulatory Environment
13
Finance
14
Dubai International Finance Centre
18
Financial reporting and audit
19
Labour
21
Immigration and visa process
27
UAE Free Zones
28
About Grant Thornton
29
Contact us
33
Appendices
36
“The United Arab Emirates (UAE) has
continued to strengthen its position
within the global market. The
opportunities which are present, along
with the UAEs strong connections with
some key financial and international
markets, makes this a region of choice for
dynamic businesses.
Hisham Farouk,
Managing Partner
Foreword
Grant Thornton is one of the world’s leading organisations of independent assurance, tax and advisory firms.
These firms help dynamic organisations unlock their potential for growth by providing meaningful, forward
looking advice. Proactive teams, led by approachable partners in these firms, use insights, experience and
instinct to understand complex issues for privately owned, publicly listed and public sector clients and help
them to find solutions. More than 38,000 Grant Thornton people, across over 130 countries, are focused on
making a difference to clients, colleagues and the communities in which we live and work.
This guide has been prepared for the assistance of those interested in doing business in the United Arab
Emirates. It does not cover the subject exhaustively but is intended to answer some of the important, broad
questions that may arise. When specific problems occur in practice, it will often be necessary to refer to the
laws and regulations of the UAE and to obtain appropriate accounting and legal advice. This guide contains
only brief notes and includes legislation in force as of January 2014.
“Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance,
tax and advisory services to their clients and/or refers to one or more member firms, as the context requires.
Grant Thornton International Ltd (GTIL) and the member firms are not a worldwide partnership. GTIL
and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not
provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another
and are not liable for one another’s acts or omissions.
Introduction
“The United Arab Emirates (UAE) has continued to strengthen
its position within the global market. The opportunities which
are present which have seen further reinforcement due to the
Expo 2020 win, along with the UAEs strong connections with
some key financial and international markets, makes this a region
of choice for dynamic businesses.
Investment in the UAE reflects the continued growth of the
region post the recent economic downturn experienced around
the world. Economic restructuring has been underpinned by
efforts to strengthen the business climate, boost investment and
foster the emergence of a more vibrant private sector. The UAE
aims to be a regional financial hub and the present market
conditions, external market feedback and optimism indicate a
positive change in trends.
This guide will provide an overview of the financial, business
and legal infrastructure, as well as a key insight into doing
business within the UAE.”
Hisham Farouk,
Managing Partner, Grant Thornton UAE
4
Country profile
Capital:
Largest city:
Main language:
Main religion:
International dialing code:
Abu Dhabi
Dubai
Arabic
Islam
+971
The UAE has continued to grow to become one of the largest economies in the Middle East. The country offers
endless investment opportunities to local and international investors and attracts trade due to a number of free
zones located throughout the Emirate which offer lucrative incentives attracting investment. Currently there are
over 20 free zones in the UAE which offer differing benefits throughout the region allowing investors to chose
the favorable option for there needs.
Geographical Location
The UAE is a federation of seven emirates, the constituent emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Ras
al-Khaimah, Fujairah, and Umm al-Quwain. The capital is Abu Dhabi, which is also the state's center
of commercial and cultural activities. Dubai is seen as the most attractive emirate for business.
The UAE is located on the Eastern coast of the Arabian peninsula. It is within close proximity to Oman, Saudi
Arabia and Qatar. It is located within the northern approach to the Strait of Hormuz, a pivotal point for world
crude oil. The total area of the UAE is approximately 77,700 square kilometers, Abu Dhabi being the largest
emirate and Ajman being the smallest.
Petroleum and natural gas are two of the predominant natural resources which encourage investment and trade.
The UAE has close transport links internationally, with airports located in Abu Dhabi, Dubai and Sharjah. Dubai
airport serves as one of the major international hubs in the Middle East, which allows it to contribute to the
economy with current figures showing that it “supports over 250,000 jobs in Dubai and contributes over US$22
billion, which represents around 19% of total employment in Dubai, and 28% of Dubai’s GDP”. The aviation
industry continues to grow, with expected figures in 2020 showing a significant increase to this industry.
Population
The population of the UAE is 8.1 million according to united nations statistics. The region has a high migration
rate and has one of the worlds largest growing populations specifically due to the migration. The region has a
large expatriate community who come from the United States, India, Pakistan and the United Kingdom to name
a few. This has supported the UAE in ensuring the highest skilled workforce is available to support the local
community to continue strengthening the economy.
5
Language
The native language of the UAE is Arabic which is widely spoken by the local community. English is the second
language of the UAE, however due to the high levels of migration the region also benefits from a diverse
language skill set with the following languages spoken across the UAE; Urdu, Hindi, Persian, Pashto, Malayalam,
Bengali, Tamil, Balochi, Russian, Tagalog and Mandarin Chinese.
Climate
Due to the UAE being mainly located on prior desert land, it lies in the arid tropical zone. The climate is
characterized by high temperatures and humidity in summer with the temperature reaching above 50 degrees
celsius. During the winter months, the region has irregular rainfall with the annual average rarely exceeding no
more than 10 inches.
Currency
The currency for the UAE is Dirhams, the currency abbreviation is AED. There are a number of international
banks located within the region which makes foreign currency exchange easily accessible.
Business hours/time zone
The working week in the UAE is Sunday to Thursday with Friday and Saturday being the national weekend. The
time zone is +4hrs GMT which allows the UAE to continue to respond to international business needs
throughout the world, with many seeing the region as the MENA business hub.
Public holidays
The public holiday dates differ annually in the UAE dependent on the month that Ramadan falls. The
government has confirmed the following public holidays for 2014 (dependent upon the moon the date may
change):
01 Jan
13 Jan
27 May
28 Jul
04 Oct
25 Oct
02 Dec
New Year's Day
Milad un Nabi (Birth of the Prophet Muhammad)
Lailat al Miraj (Night of Ascension)
Eid al-Fitr (End of Ramadan)
Eid al-Adha (Feast of Sacrifice)
Al-Hijra (Islamic New Year)
National Day
Government
The UAE is a constitutional federation of seven emirates; Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Qaiwain,
Ras Al Khaimah and Fujairah. The federation was formally established in December of 1971. The term of elected
office for the Vice President is five years, with the current Vice President of the UAE being Sheikh Mohammed
bin Rashid Al Maktoum. The UAEs political system, which is a unique combination of the traditional and the
modern, has underpinned this political success, enabling the country to develop a modern administrative
structure, whilst ensuring that traditions are maintained, adapted and preserved.
6
Investment and business opportunities
There are many options open to international companies seeking to establish a business in the UAE. Apart from
forming a trading relationship through commercial agencies, for many companies there are distinct advantages in
having an on-the-spot presence. This makes it easier to research market prospects, make contacts, liaise with
customers and see through the details of any transactions.
Having a presence is also important in the context of the commercial culture of the Middle East. Business
owners and people in the region prefer to deal with someone they know and trust by building personal
relationship. Another regional factor that adds to the importance of having a physical presence is that the buying
patterns of some countries served by the UAE are unpredictable, creating a need for first class market
intelligence and information.
Direct trade
International companies wanting to trade directly with the UAE by supplying goods and services from abroad
should appoint a commercial agent who is already established in the market. The agent must be a UAE National,
or a company solely owned by a UAE National. The foreign principal and the agent in the UAE are required to
enter into a commercial agency agreement specifying the products and the territories to be covered by the
contract. They should also comply with the relevant provisions of the Federal Commercial Agency Law and the
procedures and conditions prescribed therein. It should be noted that a commercial agent can not carry out
activities in the UAE unless the name is entered in the Commercial Agency Register maintained at the Ministry
of Economy and Commerce.
7
Business entities
Summary
Under UAE law, foreign entities interested in establishing a formal presence in the UAE have five options:
create a permanent establishment, of which there are seven different types; establish a branch / representative
office; create an entity in a UAE free zone; create a civil company (only in Sharjah and Dubai); Furthermore,
Limited Liability Companies (LLCs) are more commonly used by the foreign investors. Federal company Law
stipulates a total local equity of not less than 51% in any commercial company and defines seven categories of
business organisation, which can be established in the UAE.
Structure of business organizations
The types of companies in which foreign equity participation is permitted under Federal Law No. 8 of 1984
concerning Commercial Companies, as amended (the "Companies Law"), and compares and contrasts the
material provisions applicable to such companies. A branch established by a foreign entity under the
Companies Law is not considered a separate company but rather a part of the foreign entity. Thus, the foreign
entity is considered to be directly doing business in the U.A.E. and has unlimited liability for the operations of
the branch.
Business entities
The Companies Law recognizes seven types of companies for formation under its provisions and permits
foreign equity participation in all but one (the general partnership). The companies in which foreign equity
participation is permitted are as follows: the public and private joint stock company (the "JSC", which
references hereafter is both the public and private variety unless otherwise indicated), the limited liability
company (the "LLC"), the limited partnership company (the "LPC"), the share partnership company (the
"SPC") and the joint venture company (also known as a contractual venture or consortium company) (the
"CC"). Of these, the LLC has been the vehicle of choice for foreign companies forming companies under the
Companies Law.
Capital and shareholders
Capital requirements under the Law varies for each type of company. A company in which the State or any
other public body hold any share capital, irrespective of its amount, shall be incorporated only as a public joint
stock company. Public joint stock company capital must adequately achieve the objectives of its incorporation,
and in all cases may not be less than ten million dirhams. In all cases the company's capital shall comprise only
cash. It is a requirement for the establishment of a company to have one or more national partner(s) whose
share in the company's capital is not less than 51%.
Filing requirements
Under the Companies Law the auditor is obliged to submit a report of his finding to the General meeting,
which is required to be convened within four months of financial year end and the auditor must deliver copies
of his report to both the Ministry and the Concerned Authority.
8
Dissolution
The company should be dissolved in the event of expiration of the company's term without renewal,
completion of the company's purpose, adoption of a resolution to dissolve by the extraordinary general
assembly or merger, and, if the losses of the LLC to one-half of the capital, the general assembly or the
extraordinary general assembly, respectively, must vote on dissolution. Dissolution of the LLC requires the
approval of partners representing three quarters of the capital. If the LLC's losses amount to three quarters of
the capital, partners owning one quarter of the capital may demand dissolution. The LLC cannot be dissolved
by the withdrawal or death of, or by adjudication of distrait, bankruptcy or insolvency against, one of the
partners unless the articles of association of the company (the "AOA") provides otherwise. The LLC
dissolution must be made public by informing the relevant authorities and by publication in two local Arabic
daily newspapers.
Legal and other reserves
Dubai’s rise to one of the most dynamic business hubs in the world has made the city an immensely
attractive commercial destination. To ensure that this growth and success continue, it is essential that each
new business venture complies with a standard set of directives and regulations.
You need to be fully aware of what is considered to be breaking these rules and what the penalties are : for
not sticking to them. The fines range from AED 250 for failing to renew a license within the specified time
limit, to AED 20,000 for using Dubai Summer Surprises or Dubai Shopping Festival logos without
permission.
Business Licensing and Registration Officers make regular random checks to ensure that companies licenses
are up to date, that they are complying with all regulations and that they have not changed any aspects of
their business without approval from DED.
Establishing a sole proprietorship
A business owned by a natural person to practice economic activity in the emirate of Dubai, inseparable of its
owner personality and financial standing, being fully responsible for all financial liabilities against others, and,
- A sole proprietorship can only be owned by an individual, not a company. This person will own 100% of
the business control all of its operations and keep 100% of any profits.
- A professional-type sole proprietorship can be owned by an individual of any nationality
- A sole proprietorship that is industrial or commercial can be owned only by UAE Nationals or GCC
Nationals.
- A sole proprietorship that is a commercial or industrial business must be owned 100% by a UAE
National.
- A sole proprietorship requires a Local Service Agent (LSA) if the owner is not a UAE-National.
Establishing a foreign company branch
The Commercial Companies Law covers the formation and regulation of branches and representative
offices of foreign companies in the UAE and stipulates that they may be 100% foreign owned, provided a
local service agent is appointed.
A branch office, legally regarded as part of its parent company, is a full-fledged business, permitted to
perform contracts or conduct other activities as specified in its license. A branch office may only be engaged
in activities similar to those of its parent company.
A representative office, on the other hand, is limited to promoting its parent company’s activities, i.e. to
gather information and soliciting orders and projects to be performed by the company’s head office.
Representative offices are also limited in the number of employees that they may sponsor.
The local service agents are not involved in the operations of the company but assist in obtaining visas,
labour cards, etc. and are paid a lump sum fee per annum.
Taxation
The UAE has no personal income, corporate or withholding taxes. The country is characterised by an almost
complete absence of taxation.
Bank and Petroleum Taxes
With the exception of banks and oil companies no corporate income tax is payable by businesses in the UAE.
Oil companies’ pay up to 55% tax on UAE sourced taxable income whereas foreign banks pay 20% tax on
taxable income generated in the Emirate. The taxable income of banks is as per the audited financial statements
whereas that of oil companies is as per the concession agreement. Oil companies also pay royalties on
production.
Customs Tax
Imports into the UAE can only be undertaken by those importers who have the appropriate trade license.
Import duties have been largely standardised at 5%, but there are many exemptions, including food, building
materials, medical products and any item destined for a free zone. Cigarettes are the exception to the general
rule with the federal government approving 100% tax, a 50% tax is levied on alcohol.
Free Trade Agreements
The UAE is under an agreement with the GCC (Gulf Cooperation Council) and therefore required to levy 10%
duty on all luxury goods. By law, approximately 70 goods have been exempted from tariffs, including medicines,
agricultural machinery, un-worked silver and gold, iron and steel for use in construction, and raw or partially
worked materials for use by local manufacturers. Goods produced within the GCC are also exempt from duties
as are goods destined for a Free Zone.
Municipality Taxes
Municipality service charges are levied on individuals living and working in the UAE. Service charge
percentages vary among the emirates. A service charge of five to ten per cent is charged on food purchased in
restaurants. Furthermore, hotels charge a ten to fifteen per cent service charge per night on room rates. These
charges are usually included in the customer’s bill, which the municipality will collect from restaurants and
hotels.
UAE Free Zone Taxes
Free Zones contain financial incentives to establish manufacturing industries in the UAE. These are primarily
focused on exemption from all taxes and duties levied on profits or production.
The major incentives offered by the UAE Free Trade Zones are:
• 100% foreign ownership with 100% repatriation of capital and profits.
• No corporate taxes for 50 years
• No personal income taxes.
• Exemptions from customs duties.
• Absence of currency restrictions.
11
Regulatory Environment
The UAE has over 20 free zones, each of which have there own licensing body. Free zone companies can be
owned by 100% foreign ownership, as can civil companies in Dubai which can be owned by 100% professional
partners of any nationality. If the owner is a national of a country other than the UAE or GCC, they require a
local service agent.
A branch of a foreign company or a representative office is 100% owned by the parent company but should
have a local service agent.
Government approvals and registration
To start your business in UAE whether in Dubai land or free zone, first you should be licensed to be able to
trade or doing any business in UAE. At the onset you should apply for the provisional approval to confirm
that the UAE Government has no objection to you starting a business, this will allow you to take the next steps
to obtain any other approvals if required for specific activities to obtain a business license such as engineering,
contractors, schools and banks.
All businesses in the UAE must have a physical address whether office or warehouse (dependent on the
activity). Each license category in different emirates and different free zones have various requirements inorder
to obtain the license.
FZE and FZCO should deposit the share capital in a local bank before issuing the company license.
Once the company has been fully incorporated and the license has been issued, you can start your business
activities listed in company’s license according to UAE laws and regulations.
Competition rules/consumer protection
The Consumer Protection Section at the Department of Economic Development (DED) is responsible
for protecting the consumers and raising awareness of their rights and responsibilities. The Consumer
Protection Section, which is part of the Commercial Protection Department at DED, implements a series of
measures and policies aimed at creating a safe environment for consumers of various products and services in
the Emirate
Import and export controls
UAE Federal Law No. 13 of 2007 on Commodities that are Subject to Import and Export Control Procedures
(the 2007 Law) which was issued by the President of the UAE, His Highness Sheikh Khalifa Bin Zayed Al
Nahyan, on 31st August 2007. This law essentially sought to harmonise the rules and standardise the
procedures relating to the import and export of certain identified commodities throughout the UAE and bans
the export or re-export of strategic commodities, including arms and military hardware, chemical and biological
materials, and dual-use items without having first obtained a special license to do so.
12
Regulatory Environment
Import restrictions
The importer must obtain a valid importer code from Custom and goods must be in conformity with the
activity of the licensed company. Import permission from the competent authority is required depending on
the type of the goods.
Export restrictions
Owners of the means of transportation of goods, loaded or unloaded, will be need to submit to the customs
office the manifest according to the rules and regulations and will need to obtain exit permission.
Exporters of goods shall proceed with the goods to be exported to the competent customs office and will be
required to declare them in detail.
Custom duties
Customs duties are levied in most goods imported into UAE at the rate of 5% of the value in CIF (Cost Freight
Insurance) terms except for alcohol and cigarettes, 50% Duty payable for alcohol while 100% for cigarettes.
Goods are imported from outside the country for use in exhibitions, seasonal markets and similar events or in
construction projects and scientific researches and has to be returned in the same condition at which they have
been imported. A letter showing the purpose of entry, period, total quantity, description and detailed value of
each individual item is required from the licensed company. Payable customs tariff for such goods are collected
(excluding tires, spare parts and batteries) in the form of cash deposit or a bank guarantee to be refunded to the
company upon re-exporting the goods outside the country or taken into free zones.
Government incentives
The UAE economy is proving to be extremely resilient in a difficult global economic climate and opportunities
to do business in the country are many. The UAE’s currency, the dirham, which is pegged to the US dollar, is
secure and freely convertible; there are no restrictions on profit transfer or capital repatriation; import duties are
low (less than 4 per cent for virtually all goods) and, in the case of items imported for use in the free zones,
non-existent; labour costs are competitive; corporate tax and personal taxes are nil and numerous double
taxation agreements and bilateral investment treaties are in place. In addition, the financial risk is minimal.
These factors, combined with a strategic, accessible location for major regional markets, an excellent reliable
infrastructure and an extremely pleasant, stable and safe working environment are key elements in attracting
foreign investment.
The UAE is a contracting party to the General Agreement on Tariffs and Trade (GATT) since 1994 and a
member of the World Trade Organization (WTO) since 1996. It is also a member of the Greater Arab FreeTrade Area (GAFTA) in which all Gulf Cooperation Council (GCC) states participate.
The UAE concluded Free Trade Agreements with Singapore and the AFTA bloc in 2008 and 2009 respectively,
and is now cooperating with the GCC's negotiating team to conclude Free Trade Agreements with the EU,
Japan, China, India, Pakistan, Turkey, Australia, Korea and the Mercosur bloc comprising Brazil, Argentina,
Uruguay and Paraguay.
13
Finance
Summary
The economic outlook for the United Arab Emirates (UAE) is positive as the economy has made a steady and
strong recovery after the challenges it faced in 2009.
The UAE has registered USD 11.2 billion of M&A deals so far in 2013, the highest total deal value in the
region, according to a report. Economic growth of UAE is estimated to have reached 4.3% in 2012. In
September 2013, the IMF predicted GDP growth of 4% however the fund may raise its economic growth
forecasts for the UAE this year, helped by Abu Dhabi’s buoyant oil & gas industry and its significant
infrastructure and industrial investment, and further bolstered by a rebounding Dubai economy, enhanced by
the recent Expo 2020 win.
During 2012, oil production expanded by 5.2%, and non-oil growth, driven primarily by growth in the services
sectors, continued to accelerate to 3.8%. The real estate market, which had been a drag on growth since the
2009 crisis, experienced an uneven recovery. Inflation remained subdued at 0.7% on average, in light of a still
declining rent component and limited pass-through of international food prices.
The recovery in Dubai is largely concentrated in high-quality residential properties, helped by robust non-oil
GDP growth, increasing numbers of expatriates, and Dubai’s relative stability as an investment destination.
Residential real estate prices rose on average 16% year-on-year in April 2013. Supply growth was modest in
2012 but is expected to increase by the end of 2013.
There are three primary growth drivers for the UAE in 2014. First is investment in the non-oil sector by the
Emirate of Abu Dhabi, with project outlays continuing to flow to achieve the Emirate’s long-term development
and diversification objectives.
Second is that Dubai’s core trade and services sector are likely to continue benefiting from strong regional
dynamics such as the Expo 2020, as bulging GCC fiscal surpluses drive long-term infrastructure and
diversification projects. Dubai, as the regional hub, is well placed to capture these flows. Dubai’s non-oil trade
was up 16% (USD 184 billion) in H1-2013 according to government statistics, against 9% (USD 158 billion)
growth in the same period last year.
Third, the tourism sector is likely to have another strong year. Hotel occupancy rates and tourist inflows to
Dubai are very strong. In H1-2013 the number of tourists in Dubai reached 5.5 million, an 11% increase over
2012.
•Source: Standard Chartered Bank, Rising East, emerging West; Mergermarket, IMF, The National
14
Finance
Banking system
The UAE has 23 local banks and 28 foreign banks. These financial institutions, through their branch networks
and affiliate service centers, cater to the financial needs of the UAE population of approximately 8.2 million.
The Central Bank of the UAE is the banking regulatory authority in the country and its main responsibility is
formulation and implementation of banking, credit and monetary policies. Additionally, the Dubai Financial
Services Authority (‘DFSA’) is the regulatory authority for other financial entities including, investment banks,
asset managers established in the free-zone, Dubai International Financial Centre (‘DIFC’).
UAE’s currency, the Arab Emirate Dirham, is pegged to the United States Dollar at a fixed rate of AED3.673:
USD 1. The country’s currency peg to the U.S. dollar limits the central bank from using interest rates to target
loan growth. The central bank hasn’t changed interest rates since February 2009, when it cut the repurchasing
rate by 50 basis points to 1 percent.
The UAE’s banking sector is seen as highly liquid with the banking system’s liquid assets-to-total assets ratio of
30 per cent as of December 2012 as well as a loans-to-deposit ratio of 93 per cent (down from 108 per cent in
2008). The outlook for the UAE's banking system has been changed to stable from negative, according to
Moody's Investors Service in a report published in November 2013. The outlook change reflects the continued
improvements in the operating environment, as well as the ongoing recovery of the local real-estate market,
which Moody's believes will lead to a decline in problem loan levels and an increase in profitability over the
next 12 to 18 months. In addition, the rating agency expects that banks will continue to maintain high liquidity
and capital buffers that were built up since the onset of the global financial crisis.
Access to local credit financing
Granting credit facilities to a customer varies according to the customer’s credit standing, as well as the credit
appetite of banks. A number of factors are considered by a bank prior to the granting of the credit facilities,
including the following:
•
•
•
•
•
Nature of the business activity and industry
Legal status of the establishment
Establishment’s business history and accomplishments in the UAE
Financial position and future prospects of the establishment, and
Quality of the Management
Key documents required by banks in order to open accounts are as follows:
• Copy of valid trade license or certificate of incorporation
• Copy of the power of attorney or Board resolution
• Passport copies, including resident permits of key people, and
• Copy of valid chamber of commerce registration certificate (mainly for limited liability companies and
branches of foreign companies)
•Source: HSBC, Country Guide.; Moodys.com “Moody's: UAE's banking system outlook changed to stable from negative”.
15
Finance
Capital Markets
NASDAQ Dubai
NASDAQ Dubai is the international financial exchange in the Middle East. It allows companies to benefit from
a unique investor pool that combines regional and international wealth.
A key advantage of NASDAQ Dubai is that owners can retain a majority of the shares after their IPO, and thus
keep control of the company. No more than 25% of the shares need to be sold. In 2012, the DFSA reduced the
minimum market capitalisation requirement for companies to list to USD 10 million, from USD50 million
previously. This change has opened the door to listings by small and medium-sized enterprises, including family
owned businesses. Currently, there are 10 issues listed on Nasdaq Dubai.
* Source: NASDAQ Dubai website
Dubai Financial Market
Dubai Financial Market was established as a public institution having its own independent corporate body.
DFM is operating as a secondary market for trading of securities issued by public joint-stock companies, bonds
issued by the Federal Government or any of the Local Governments and public institutions in the country. The
Market commenced operations on 26th March 2000. Currently, there are 55 companies listed on the DFM.
Requirements of an IPO listing on the DFM is as follows:
• Primary local companies listing
• Minimum free float of 55 % except family 30%
• 51 % UAE minimum ownership
• Lock in period for founders 2 years
• Offer structure new shares ( capital increase)
Source: DFM website
Abu Dhabi Securities Exchange
The Abu Dhabi Securities Exchange (ADX) was established on 15 November 2000. ADX has 68 listed
securities and a market capitalization of AED 292 Billion ($79.4 billion USD) as of September 30 2012.
In 2010, the ADX became the first market in the region to introduce Exchange Traded Funds (ETFs) trading
platform, by listing NBAD’s ‘OneShare Dow Jones UAE 25’ ETF, under the ticker symbol 1UAE, and hence
established the necessary infrastructure for diversified investment vehicles.
In alignment with the Abu Dhabi Government's Economic Vision 2030, ADX aspires to become the leading
stock exchange in the GCC through leading the development of capital markets in the United Arab Emirates
through a well-organized lawful environment that ensures integrity, transparency and disclosure.
Source: ADX website
16
Finance
Other sources of finance
The Private Equity (‘PE’) industry in the MENA region continued to show signs of recovery in 2012 with an
increase in the number and total value of known investments compared to the prior year.
In contrast to many countries outside of the region (in particular those impacted by the Euro-zone crisis), the
total number of investments increased from 84 in 2011 to 91 in 2012. The average investment size during 2012
at USD 8 million was broadly consistent with 2011 levels (USD 7.5 million) with the continuing focus on
venture capital (‘VC’), growth capital and SME investments.
PE firms in the MENA region continued to favour the non-cyclical sectors such as oil and gas services,
healthcare, and education which accounted for nearly 60% of the total number of investments in 2012. Sectors
that were most significantly impacted by the global financial crisis, such as real estate, construction and financial
services continued to see low levels of activity in 2012.
A number of PE funds in the region are nearing the end of their lifecycle. While some funds have already made
opportunistic exits, many are faced with the increasing pressure to sell and return funds to their LPs. This is
reflected in the increase in the number of exits completed during 2011 and 2012 (46 combined), compared to a
total of 27 during 2009 and 2010. The trend is expected to continue in the coming years.
* Source: MENA PE Report
17
Dubai International Finance Centre
The Dubai International Finance Centre more commonly known as DIFC houses some of the largest financial
services, banking, legal and accountancy firms in the world. It was developed and resembles the financial hubs in
New York, London and Hong Kong. Its primary aim is to serve the vast region of the Middle East, North Africa
and South East Asia, which allows many to believe that Dubai is soon to become the MENA business hub of the
world.
The DIFC focuses on several sectors within the financial industry such as banking services, capital markets, asset
management and fund registration, insurance and reinsurance, Islamic finance, business processing operations
and ancillary services.
The Dubai International Finance Centre was established to create a regional capital market, offering investors
and issuers of capital world class regulations and standards. The hallmarks are integrity, transparency and
efficiency.
The DIFC offers organisations that reside there a highly attractive investment environment including:
•
100% foreign ownership
•
0% tax rate on income and profits
•
Wide network of double taxation treaties available to UAE incorporated entities
•
No restrictions on foreign exchange or capital/profit repatriation
•
Transparent operating environment with high standards of rules and regulations
•
Strict supervision and enforcement on money laundering laws
•
State of the art infrastructure, data protection/security
However, unlike ‘offshore’ tax havens, DIFC is a fully fledged ‘onshore’ capital market, comparable to Hong
Kong, London and New York.
The Dubai Financial Services Authority (DFSA)
As the independent regulator of financial and ancillary services undertaken in or from the DIFC, the DFSA
licenses, authorises and registers businesses and individuals who wish to conduct these services in the Centre;
supervises their activities and will enforce the law where necessary.
Grant Thornton UAE is registered by the DFSA as Approved Auditor and Ancillary Service Provider. For
further information relating to DIFC, please contact us.
18
Financial Reporting & Audit
Filing and publication requirements
In accordance with the UAE Commercial Companies Law public and private shareholding companies, limited
liability companies, branches of foreign companies and free zone establishments have to file their financial
statements within 120 days of year-end. Filing is done with the Federal Ministry of Economy and Commerce
and with the local licensing authority (i.e. the Economic Department or the municipality). Presently, the
requirement to submit financial statements to the Federal Ministry is not always rigorously applied and certain
licensing authorities request audited financial statement as part of the license renewal process.
Free zone establishments in the Jebel Ali Free Zone are required to submit their annual audited financial
statements to the Jebel Ali Free Zone authority within 90 days from the financial year-end.
Banks and financial institutions have to submit their financial statements to the UAE Central Bank while
courier companies are required to submit their statements to the Ministry of Finance and Industry.
Accounting standards
Presently, the Commercial Companies Laws do not specify any accounting standards framework for the
preparation of the financial statements. The Central Bank of UAE has made it mandatory for banks to prepare
their accounts as per International Financial Reporting Standards (“IFRS”). Most listed companies prepare their
accounts as per IFRS. In the absence of any specific standards framework in UAE, most of the practising firms
apply IFRS in the preparation of audited financial statements, and apply International Standards of Auditing in
the conduct of audit of financial statements.
Audit requirements
Audit of entitles in non free zone area
For entities in the non-free zone area, governed by Commercial Companies Law (Federal law no 8 of 1984 and
its amendments) audit is mandatory in case of the following entities
limited liability company
public joint stock company
private joint stock company
partnership with limited shares
branch of foreign company
For the following entities in the non-free zone area, though governed by the Commercial Companies Law, audit
is not mandatory:
general partnership
limited partnership
Sole proprietorship is not governed by Commercial Companies Law, and hence audit is not mandatory.
19
Financial Reporting & Audit
Audit requirements
Audit of entitles in free zone area
Regulations pertaining to audit are covered by the Free Zone Regulations. Audit is mandatory for entities
established within the Free Zone regulations such as Free Zone Establishment (FZE), Free Zone Company
(FZC) and Free Zone Limited Liability Company (FZ LLC).
In case of Jebel Ali Free Zone Authority, audited financial statements have to be filed with JAFZA within 3
months from the end of the financial year. Similar provisions are applicable for other free zones.
Audit of Dubai offshore company
In case of a Dubai offshore company, within 6 months after the end of the financial period, the accounts for
that period shall be
(a) prepared and examined and reported upon by auditors; and
(b) laid before a general meeting together with a copy of the auditors' report.
20
Labour
Regulating Laws
Generally, The UAE Labour Law, Federal Law No. 8 of 1980, as amended, governs most employment
relationships in the UAE. The Labour Law applies to employees working in the private sector in the UAE and
does not apply to officials or employees who are employed in federal government, local ministries, government
sectors, domestic servants and agricultural workers.
The UAE Labour Law imposes standard provisions on the rights and responsibilities of employers and
employees from the time of employment up to termination. It also provides guidelines on remuneration or
wages, holidays and other statutory benefits for employees.
Some free zone authorities have their own employment laws and regulations like Jebel Ali Free Zone
Authorities (JAFZA) and Dubai International Financial Centre (DIFC). DIFC is govern by the Employment
Law No. 4 of 2005 (the " DIFC Employment Law") which applies only to all employees of entities having a place
of business within the DIFC and entities created by law No.9 of 2004. The DIFC Employment Law and the
Federal Law No. 8 of 1980 may have major differences on rules with regards to leaves and end of service.
For the purpose of this article, the following section will be based generally on the Federal Law No. 8 of 1980
as this governs most of the employment regulations among the Emirates.
Wages
There is no minimum wages specified in UAE but as per the Labour Law, wages shall be paid on a working day
and at the place of work in the lawfully circulating national currency which is UAE Dirhams (AED).
Employees shall be paid at least once a month.
Effective on September 2009, the Ministerial Decree No. (788) of 2009 on Protection of Wages requires all
institutions registered with the Ministry of Labour to pay their workers' wages once a month, at least, or on the
dates specified in the work contract.
Wages shall be transferred to the banks and financial institutions in the UAE via the Wages Protection System
(WPS).
The system, developed by the Central Bank of the UAE, allows the Ministry of Labour to create a database that
records wage payments in the private sector to guarantee the timely and full payment of agreed-upon wages. It
aims to promote job security in UAE, strengthens the employer-employee relationship and reduces labour
disputes pertaining to wages.
The WPS has been expanded to cover salary payments for employees working for companies registered under
the Jebel Ali Free Zone Authority (JAFZA), in addition to the existing institutions under the Ministry of Labour
(MOL) which took effect on first quarter of 2012. There are also plans of implementing the system to other
Free Zone Authorities like TECOM but currently not yet started.
21
Labour
Pensions and social security
Pensions and social security schemes in the UAE are governed by the Pensions & Social Securities Law, Federal
Law No. (7) of 1999, as amended. The law is applicable to all UAE and Gulf Cooperation Council (GCC)
nationals who hold a UAE Family Book (that is, a book documenting the lineage of a family in the region)
either working in private and public sector.
The employee is required to pay a monthly contribution at a rate of 5% of his salary and employer’s share in the
private sector is 12.5% of the salary of the employee. Contributions for GCC nationals vary, depending on the
requirements of the relevant GCC country.
The employer is responsible for collecting employee contributions to be provided to the General Authority for
Pensions and Social Security (GPSSA). The Government pays its contribution directly to the GPSSA.
Contributions shall be payable every first day of the month following the month in which contributions became
due, beyond this there is a grace period of 15 days after which penalties for late payment will be levied.
Fringe benefits
Housing Allowance
Usually housing allowance is given to employees as part of their salary package. It can be given to employee as
one-off payment or as part of their monthly salary. There are also companies who provide accommodation for
their employees and so housing allowance is not necessary.
Transportation/Car Allowance
There are employers who give transportation/car allowance for employees who were not provided with
transportation services and normally paid on a monthly basis. Some employers however provide a company car
as part of the employment package, especially to high ranking employees in lieu of transportation allowance.
Overtime Pay
The normal working hours for employees is 8 hours per day except for employees in commercial
establishments, hotels, restaurants or other similar operations which may be increased to 9 hours per day as
determined by the Ministry of Labour.
If it is necessary for employees to work beyond his working hours, the extra time shall be considered as
overtime, he shall be paid equal to his corresponding normal working hours plus 25 % of such hourly rate.
If the employee works between 9:00 pm to 4:00 am, he is entitled of his normal working hours plus 50% of the
normal hourly rate.
Friday is the normal weekly holiday, and if employee is required to work on Friday, he shall be granted one day
off for rest or be paid the normal working hours plus 50% of the normal rate. This is also applicable to
employee who has worked on public holidays or on their respective rest days other than Friday.
22
Labour
Air Ticket
There is no specific provision for the air ticket benefit of employees intended for vacation to their home
country. However, most of the companies in UAE provide air ticket benefits to their employees for their yearly
vacation to their home country as part of their benefit package. But there are some companies that provide
every 2 years and some only provide air ticket back home at the end of their contract or for renewal.
Health Insurance
Most of the companies in UAE also provide health insurance benefits to their employees. As of now, this is
not currently mandatory yet within UAE except Abu Dhabi which has been regulated by Law No. 23 of 2005,
which is the Executive Regulations Regarding the Health Insurance Scheme for the Emirate of Abu Dhabi. This law requires
all companies in Abu Dhabi to provide health insurance to their employees. The authorities however, are
currently working on a draft law which will mandate all companies within the UAE to provide health insurance
to their employees including Dubai and other emirates.
Leaves
Annual Leave
The employee is entitled to annual leave during each year of service which may not be less than:
2 days per month – if the employee works more than 6 months and less than 1 year of service.
30 days per year if the employee exceeds one year of service.
Holiday pay
Each employee is entitled to official leave with full pay on the following Public Holidays:
Hijra New Year
1 day
Christian New Year
1 day
Eid Al Fitr
2 days
Eid Aid Al Adha and Waqfa Day
3 days
Birthday of the Prophet
1 day
Ascension Day
1 day
National Day
1 day
As mentioned in previous section, if employee works on holidays or rest days he shall be compensated in lieu
thereof plus 50 % of his wage or if he is not compensated of the same leave, he shall be paid of his normal
working hours plus 50 % of his hourly rate.
Sick Leave
The employee is not entitled to any paid sick leave during the probationary period. However, if the employee
spends over 3 months after completion of probationary period, he shall be entitled to a sick leave not more
than 90 days for each year of service computed as follows:
The first 15 days with full pay.
The next 30 days, with half pay.
The subsequent period, without pay.
23
Labour
Maternity Leave
A female employee is entitled to maternity leave of 45 days which includes the time before and after her
delivery. She shall be entitled to full pay if she has completed not less than one year of continuous service with
the company. If she has less than one year of service however, her maternity leave shall be half pay only.
An additional period of 100 days, consecutive or non-consecutive, can be granted following the 45 days to the
employee without pay upon providing a medical certificate evidencing her illness which prevents her from
resuming her work, or if it is confirmed by a competent health authority that the illness was caused by the
employee's pregnancy or delivery.
During the 18 months following the delivery, a nursing mother is entitled to two breaks of not more than 30
minutes each in addition to her daily break and shall not cause any reduction on her remuneration.
There is no compensation in lieu of maternity leave.
Profit sharing
There is no provision for profit sharing and this is not compulsory in UAE. In some companies, it is usually
and only given to high ranking employees.
Worker’s compensation
Worker’s pay scale varies from industry to industry and just like in any other city it is determined mostly by the
nature of work. In Dubai manual work is not popular among the nationals so jobs involving manual work or
other employment opportunities that might not rank high socially actually pay quite well. High-ranking jobs will
naturally have much higher salaries and receive better benefits.
Healthcare
The federal authority is now planning to revive the stalled plan to have a mandatory health insurance for every
employee. A draft federal law will ensure health insurance for all employees in the country with a risk of
minimum fine of AED 10,000 for each uncovered workers, which will be imposed to employers for noncompliance of such. The draft law also states that a fine will also be imposed to employers who will require
their employees to pay for their health insurance. Employers will also be required to submit proof of cover for
each employee to relevant authorities.
This was originally scheduled to be introduced in 2009, however the plan was postponed due to some glitches
and effect of the economic downturn on business finances.
As of the moment, only Abu Dhabi has mandatory health insurance which is regulated by Law No. 23 of 2005,
Executive Regulations Regarding the Health Insurance Scheme for the Emirate of Abu Dhabi. Since the system was
implemented, employer and sponsors have been obliged to provide health insurance to employees and their
families and so far, 98% of their workers are covered by such scheme.
24
Labour
Termination of Employment
End of Service Remuneration
The employee, who has completed one year or more of continuous service, is entitled to end of service pay at
the end of their service which is calculated as follows:
21 days pay for each year of the first 5 years of service.
30 days pay for each additional year thereafter.
If the employee is under unlimited period contract and left work on their own accord after a continuous service
of not less than 1 year and not more than 3 years, he shall be entitled to 1/3 of the end of service gratuity or 7
days pay. If the period of his continuous service is more than 3 years and less than 5 years, he is entitled of 2/3
of the gratuity or 14 days, and full pay or 21 days if he exceeds 5 years of service. If the employee is under the
limited period contract and leaves their work on their own accord before the end of the contract period, they
shall not be entitled to the service gratuity pay unless the period of their continuous service exceeds 5 years.
There are cases however wherein employee shall not be entitled to end of service gratuity.
Notice Period
The minimum notice period is 30 days. The employee shall be entitled to full pay during the notice period and
shall still have to perform duties as instructed by the employer. An employer and employee can mutually agree
to a longer notice period but they cannot waive or reduce the minimum period.
If either of the party failed to serve the notice period, the party obliged to serve the notice period must pay an
indemnity called “Compensation in lieu of notice” base on their current pay in proportion to the default period.
The employer may terminate the employee without notice if they commit certain misconduct as stated on
Article 120 of the UAE Labour Law and therefore shall also not entitled to end of service gratuity.
Compensation Pay
If the employer has terminated the employee with limited period for reasons other than those in Article 120 of
UAE Labour Law, the employer is obliged to a full pay of the employee for a maximum of 3 month period.
However, if the employee terminated the contract on their own accord for any reason other than those
provided in Article 121, they will be liable to pay the employer an amount not exceeding half month’s pay for a
period of 3 months.
Repatriation Expenses
At the end of the contract of the employee, all expenses for their repatriation to their place of origin or any
other place agreed upon by both parties shall be borne by the employer. However, if at the end of their
contract should they take up employment with another company, the new employer shall pay for the
repatriation expenses.
In case the cause of the termination of contract is attributed to the employee, their repatriation will be arranged
at the employees own expense if they have the means to pay.
25
Labour
Employment protection legislation
There are no specific rules on employment protections however there are employment issues that are well
documented and follow strict compliance which were provided in different employment laws and regulations in
UAE. The employee's rights are well protected thereof and authorities ensure that there is no ill treatment from
employers.
Unions
Establishing any forms of labour unions are not permitted in United Arab Emirates.
Personnel limitations – foreigners/nationals
The Labour Law and various ministerial decisions contain the provisions that favor UAE nationals.
UAE nationals have priority to work in the UAE and in the event that there is no available UAE national for
the position, preference must first be given to persons who are nationals of an Arab country, and then to
persons of other nationalities.
Unemployed nationals may be recruited by employers who must notify the Labour Department of the same in
writing within 15 days from date of employment. Employees who are not UAE nationals maybe employed in
the United Arab Emirates only after approval of the Labour Department and must obtain a work permit from
the Ministry of Labour and Social Affairs or from the Labour Department of the respective Free Zone
Authorities. There are also certain limitations on the ability of companies to dismiss UAE nationals.
These preference provisions of the UAE Labor Law have not been fully enforced to date.
However, through the Ministerial Resolution No. 1187 of 2010, the Ministry of Labor has begun to impose
certain minimum UAE national employment requirements on specific companies or for certain job sectors,
often referred to as “Emiratization”. The Ministry of Labor generally imposes different levels of fees on
companies for Ministry of Labor transactions depending on the level of compliance with the applicable
Emiratization percentage and other cultural diversification regulations.
26
Immigration and Visa Process
It is a mandatory requirement that all companies register with the Ministry of Labour and Department of
Immigration in order to employ a foreign workforce. Business travellers are allowed to visit and can obtain
a visa prior to travel from any reputable and registered agent to attend meetings, training, exhibitions etc.
Citizens from the following countries can obtain a visa on arrival which is valid for 30 days and can be
extended for another 30 days from the Ministry of Immigration: Andorra, Australia, Austria, Belgium,
Brunei, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Italy, Japan,
Liechtenstein, Luxembourg, Monaco, New Zealand, Norway, Portugal, San Marino, Singapore, South
Korea, Spain, Sweden, Switzerland, The Netherlands, United Kingdom, US and Vatican.
GCC Country Residents
Residents of the GCC who have a valid residence visa for at least 180 days can obtain a visa on arrival for
30 days which can be extended for a additional 30 days.
Applying for a visa due to work
All applications for employing foreign nationals must be approved by the Ministry of Labour. Every
company is required to register and obtain the Establishment card from the Ministry of Labour. Once the
application has gone through clearance the Dubai department of immigration will issue the entry permit.
The employee will be required to undergo a medical check and obtain a cleared medical report. Once the
cleared medical report has been obtained, the employee will be issued with a two year visa (three year in a
free zone) which can be renewed pending approval from the employer.
Consequently, the employer will then need to apply for a Labour card after which the employee will be able
to commence employment for the respective company.
Emirates ID card
Once the visa has been obtained, the company will put in a respective application for a Emirates ID card.
The employee will be required to go to the relevant office (as mentioned when undergoing their medical
test), to have their picture and fingerprinting done. Once this has been done, they will receive their
Emirates ID card within 30 working days.
Investor Visa
A Partner of a Limited Liability Company (LLC) or a professional firm can obtain a investor visa which is
issued from the Immigration Department. They require no further approval and this can be obtained
without authorization from the Ministry of Labour. However, this must be checked on the intended date.
27
UAE Free Zones
The introduction of Free Zones has transformed the economic market of the UAE within the last 20 years,
bringing about tremendous change in the industrial scene of this young nation. The pioneer in the Free Zone
Empire in the UAE is Jebel Ali Free Zone, which was started in Dubai on 9th February, 1985. Jebel Ali Free
Zone being the first Free Zone in the country has created the benchmark for regulations and incentives. Its
rapid growth has also provided a powerful economic inspiration to the other Emirates, which have set up their
own Free Zones to attract investment. Success of any viable Free Zone largely depends on quality of service
and facilities it offers and the UAE is a brilliant example of this hypothesis. With the number of Free Zones
increasing, their impact on the UAE economy has deepened.
The primary UAE Free Zones are listed hereunder and each provide differing incentives which can be found in
the appendices:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
Jebel Ali Free Zone, Dubai (JAFZA)
Dubai Airport Free Zone (DAFZA)
Dubai Multi Commodities Centre & Jumerah Lake Towers (DMCC & JLT)
Dubai Internet City (DIC)
Dubai Media City (DMC)
Dubai Healthcare City
Dubai Studio City (DSC)
Dubai International Academic City (DIAC)
Dubai knowledge village (DKV)
International Media Production Zone (DMPZ)
Dubai Biotechnology & Research Park ( DuBiotech)
Dubai Outsourcing Zone (DOZ)
Dubai World Central (Dubai Logistics City)
Dubai Gold & Diamond Park,(DGDP)
Sharjah Airport International Free Zone (SAIF Zone)
Hamriyah Free Zone, Sharjah (HFZ)
Ras Al Khaimah Free Zone (RAK)
Saadiyat Free Trade Zone
Abu Dhabi Airport FZ
Twofour54 – Abu Dhabi
MASDAR City – Abu Dhabi
Khalifa Industrial Zone (Kizad) - Abu Dhabi
28
© 2013 Grant Thornton UAE. All rights reserved.
About Grant Thornton
29
About Grant Thornton UAE
Grant Thornton UAE
Grant Thornton UAE is a member firm within Grant
Thornton International Ltd We have been providing
assurance and advisory services to growth oriented,
entrepreneurial companies which are based in all
markets and industries since 1966.
The extensive local and regional knowledge gained
through the years has supported the development of
the firm’s reputation for providing a distinctive client
service to its local, national and international client
base.
The firm adopts best in class international tools,
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standards across all service lines in order to ensure
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Grant Thornton offices in the UAE
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About Grant Thornton International
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Contact us
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To find out more contact us…
Atul Varma is the Business Process
Outsourcing Director at Grant Thornton.
He has over 10 years of professional experience and is well
versed in outsourcing payroll and accounting services from
various countries across the globe. He also has advanced
experience in both direct and indirect taxation for the UAE and
Oman region.
During his career he was involved in multi country payroll for his
clients in GCC region of UAE, KSA, Kuwait, Oman, Egypt and
Lebanon. Prior to joining Grant Thornton, he gained his
experience working with outsourcing firms in the UAE and
India.
Atul has diverse industry sector experience including trading,
retail, financial services, IT, telecommunication and consulting.
E: atul.varma@ae.gt.com
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professional service sector in both Egypt and the UAE.
Mohamed provides client focused and tailored legal advisory
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commercial and labour rules and regulations.
Throughout his career, he has developed key stakeholder
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Unlock your potential for growth with
Grant Thornton UAE
Amgad Nassif
Audit Partner
Mohamad Nassar
BRS Partner
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mohamad.nassar@ae.gt.com
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Audit Partner
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Corporate Finance Partner
ahmed.badawi@ae.gt.com
simi.nehra@ae.gt.com
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Audit Partner
Danny McLaughlin
Fraud and Forensic Partner
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danny.mclaughlin@ae.gt.com
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Audit Partner
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Regulatory & Compliance
Director
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Anurag Chaturvedi
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35
Appendices
36
UAE Free Zones
1. Jebel Ali Free Zone, Dubai
JAFZA is Economic Zones World’s flagship operation. One of the world’s largest and the fastest growing free
zones. Established in 1985, Jafza today is spread over an area of 48 sq. kms and is home to over 6400 companies,
including over 120 of the Fortune Global 500 enterprises, from across the world. It is a leading driver of the
burgeoning UAE economy. With its impeccable track record, Jafza stands for innovation, customer centricity,
transparent operations and entrepreneurial dynamism.
The value proposition consists of the integration of products and services offered. The “basics” of the value
proposition include services and incentives, such as 100% foreign ownership, no customs duty, 0% income and
corporate tax, no labor restrictions, no currency restriction, and one-stop shopping for services.
JAFZA issues various types of company licenses:
• General Trading License allows the holder to import, distribute and store all items as per Jafza rules and
regulations.
• Trading License allows the holder to import, export, distribute and store items specified on the license.
• Industrial License allows the holder to import raw materials, carry out the manufacture of specified
products and export the finished product to any country.
• Service License allows the holder to carry out the services specified in the license within the Free Zone. The
type of service must conform to the parent company’s license, issued by the Economic Department or
Municipality of the relevant Emirate in the UAE.
• National Industrial License is designed for manufacturing companies with an ownership or shareholding
of at least 51% with AGCC (Arabian Gulf Co-operation Council) nationals / citizens. The value added to the
product in the Free Zone must amount to a minimum of 40%. This company license allows the holder the
same status as a local or AGCC inside the UAE.
Jebel Ali free zone companies may be formed within Jafza as the following types of companies:
• Free Zone Establishment (FZE) and Free Zone Company (FZCO): FZE and FZCO applicants can
avail of Jafza’s unique offer of forming a company as a separate legal entity. A FZE formation can be with a
single shareholder with a minimum capital of AED 1 million. An FZCO can be formed with 2 to 5
shareholders with a minimum capital of AED 500,000.
• Branch Company: Companies having valid registration and license outside Jafza can apply for the formation
of a branch Company in Jafza.
• Special Status Non-Resident Offshore Companies: Jafza, under Jebel Ali Free Zone Offshore Companies
Regulations 2003, allows the formation of an offshore Company by individuals or corporate bodies, as a nonresident company, having a corporate legal entity. Grant Thornton UAE are registered as one of the
approved offshore agents that can support.
37
UAE Free Zones
2. Dubai Airport Free Zone
The Dubai Airport Free Zone is located on more than 1.2 million sq. meters of land that includes apron space
of 473,000 sq. meters, on the north side of the Dubai International Airport. The significant advantages of
Dubai Airport Free Zone are its location within the boundaries of Dubai International Airport; fast and
effective cargo clearance services; on the-spot presence of international freight forwarders and logistics
companies; on-line customer service; excellent business facilities and round -the –clock services provided
online by the Customs Authority.
The highpoint of the Airport Free Zone is the attractive business incentives which include 100% foreign
ownership, no corporate or personal income taxes, the freedom to repatriate both capital and profits, full
exemption of import duties on goods used in re-export trade and for industrial purposes and the waiving of
currency restrictions.
Investors planning to conduct their business activities within any Dubai free zone are required to establish
their legal presence and obtain Dubai Business license for the activities they propose to undertake. Companies
looking to incorporate their services in Dubai Airport Free zone can choose from three types of licenses,
which can be selected according to your own requirements:
• Trade License: import, export, distribution, storage of specific products.
• Service License: the license's activity should conform to the parent company’s license, issued by the
Economic Department or Municipality of the relevant Emirate in the UAE.
• Industrial License: light manufacturing, processing, assembling and packaging.
Dubai Airport Free zone offers three different types of companies that can be set up at our premises. Each
offers you different options and benefits matching your specific business requirements. You can chose either;
• Free Zone Establishment (FZE)
Formed with one shareholder, either individual (a person) or non-individual (a company). A minimum
share capital of AED 1 million (USD 272,500) is required.
• Free Zone Company (FZCO)
Formed by a minimum of two and maximum of five shareholders. The shareholders can be individuals
(persons) of non-individual (companies) or a combination of both. A minimum share capital of AED
500,000 (USD 136,000) is required.
• Branch Office of an existing company
A foreign company can set up a branch of its existing company in Dubai Airport Free zone. No share
capital is required.
38
UAE Free Zones
3. Dubai Multi Commodities Centre / Jumeirah Lake Tower
The Dubai Metals and Commodities Centre (DMCC) has been created as a strategic goal of the Dubai
Government to establish a commodity market place in Dubai. DMCC was launched in April 2002 by the
decree from the Government of Dubai.
DMCC offers a unique opportunity for participants in a wide range of metals and commodities industries. It
provides facilities that bring together the gold trade, the diamond trade (housing a Diamond Exchange), and
trading in other selected commodities. The Centre aims to attract key players throughout the entire value
chain of each of these industry sectors, together with relevant support industries such as finance, logistics and
insurance.
DMCC is the master developer and licensing authority for the Jumeirah Lakes Tower (JLT) Free Zone, one of
the largest free zone developments in Dubai.
By offering a fit- for purpose regulatory framework, modern infrastructure, freehold property, innovative
product and cost efficient, value – added services, JLT successfully attracts key participants throughout the
entire value chain of wide range of commodities sector along with range of business from shipping
management, IT, project management and more.
Companies or individuals interested in setting up and licensing a new or existing company in JLT can choose a
trade or services license from a wide range of business activities.
The JLT free zone offers two types of business license:
• DMCC License (activities in commodities and related trade/services)
• JLT License (other business activities)
Within the JLT Free Zone, companies can set up as a:
• New Company
• Branch
• Subsidiary
• Representative Office
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UAE Free Zones
4. Dubai Internet City
The Dubai Internet City was established under the Dubai Technology, Electronic commerce and Media Free
Zone Law which was promulgated by a Decree of H. H. The Ruler of Dubai in January 2000. This new Free
Zone creates a business and regulatory environment in which Technology, Electronic Commerce, Internet
and Media companies can operate globally out of Dubai with significant competitive advantages. Unlike the
other Free Zones in Dubai, The Dubai Internet City is industry specific. The business and activities that can
be carried out in the Free Zone include the following:
• Web Based
• Back Office
• Consultancy
• IT Support
• Software Development
• Sales and Marketing
• ASP
The companies registered in The Dubai Internet City are permitted to deal in all kinds of products except
those goods and services that are in violation of intellectual property laws, products boycotted in the UAE and
the goods and services that are generally prohibited under the UAE law. Companies operating in the Free
Zone are allowed to be 100% foreign owned. The companies are also able to obtain renewable leases of up to
fifty years on ready to operate offices or land and are facilitated by a "single window" clearance for all
Government approvals. These companies are permitted to sell their goods and services throughout the UAE
and are exempted from any taxes on corporate or personal income. There are also no restrictions on the
repatriation and transfer of capital, profits and wages in any currency to any place outside the Free Zone.
5. Dubai Media city
In March 2001 many prominent media businesses representing the multifaceted media community,
comprising broadcasting, production, music, multimedia, publishing, advertising, research and printing,
commenced operations from Dubai Media City. The buildings in the city are interlinked with smart
networking that reflects its core philosophy to provide a free and flexible environment where ideas flow with
transparency and without any barriers. The aim is to provide the media business community, the creative
talent in this City, together with the regional and international cooperation a launch-pad to the future of the
global media operations.
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UAE Free Zones
Dubai Media City brings to the media community an advance infrastructure based upon a global
interconnected network, linked by satellites, computers, the internet, television, radio, journalism, cinema and
film production. The city also offers the most advance scalable IT network including web hosting. A
Customer Care Centre provides all technical and support services. Companies working in Dubai Media City
have the unique edge of commercial benefits derived from the Free Zone status including 100% business
ownership requiring no sponsorship, no customs duties, and guaranteed 50 years exemption from tax on
personal and corporate income. Media trade license will be issued from Dubai Media City. With the assurance
of hassle free, single window completion formalities for all its partners – be it large corporation or
independent entrepreneurs.
To pave the way for freelance talent in the rapidly growing arena of media evolution, Dubai Media City also
offers total office solutions through the Media Business Centre which provides a modern, supportive,
dynamic, and flexible infrastructure inclusive of latest technology and professional administrative services.
Assured sponsorship, simplified visa procedures, flexibility in leasing arrangements, a comprehensive business
infrastructure, highly skilled business assistance are just some of the facilities the Media Business Centre offers
to allow individual and corporate investors to participate in the media industry’s promising future.
6. Dubai Healthcare City
The Government of Dubai is developing Dubai Healthcare City (DHCC) with the goal of creating a regional
center of excellence for medical cervices, medical education, and life science research and development and
patients to receive world class health care and enjoy first class medical and wellness services. DHCC is an
integrated healthcare community providing a comprehensive medical treatment and prevention portfolio with
an optimised process and patient/customer flow.
The purpose of DHCC initiative is to provide the highest quality healthcare cervices to medical care and
wellness seekers from the region by creating a world class cluster of healthcare professionals and services
providers at the heart of Dubai. DHCC aspires to provide state of the art medical care services in selected
disciplines that are relevant to the problems facing the patients in the region.
DHCC has invited internationally respected institutions in health care delivery, education, services and
research and development to collocate on the site to take advantage of the synergies brought about by
physical proximity, interconnectivity and professional collaboration. Medical centers in Great Britain,
Germany and the United States are participating in the DHCC, with particular interest directed to the
academic medical center component. The DHCC tenants will have to meet international building standards
and quality standards.
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UAE Free Zones
Featured below are some of the many features and benefits of Dubai Healthcare City:
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100% tax free
100% foreign ownership
Low operating costs
State-of-the-art facilities
Integrated healthcare community providing specialized first-class medical care
Business support services (hospitality, events, etc.)
Healthcare community
Networking and connectivity with global brands/customers
Coverage of the entire value chain of healthcare
Access to world-class, specialist medical care
Highest service quality in a culturally sensitive environment (private rooms, family
accommodation, etc.)
Access to best quality medical equipment and devices
Competitive, world-class working conditions
Access to state-of-the-art facilities in day clinics and hospitals
Access to doctor network and leverage of medical knowledge and training
Attractive investment opportunity and financial return
Increased brand exposure
7. Dubai Studio City
Dubai is fast emerging as a global entertainment destination with its media-friendly initiatives and
cosmopolitan lifestyle. The Dubai Media City free zone has firmly established itself as the media hub of the
region. The opportunity to work in such a dynamic networking environment has brought together over 1000
companies, including CNN, BBC and Sony, making it a vibrant mix of talent and resources.
As a business partner, you will enjoy benefits like:
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100% foreign ownership
100% exemption from personal, income and corporate taxes
100% repatriation of capital and profits with no currency restrictions
Opportunity to channel the vast amount of untapped wealth from local investors for project finance and
long-term investment
• Channel development opportunities
Dubai Studio City invites companies offering services from the film and broadcast production value chain to
set up their facilities here.
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UAE Free Zones
8. Dubai International Academic City
The Dubai International Academic city is the first and only zone to be dedicated to the educational
institutions. It was introduced in 2007 and aims to develop the local talent pool, by becoming known as the
regions knowledge centre. It is located on a 18,000 sq. feet campus and hosts academic institutions from 11
different countries.
DIAC is able to license Higher Education authorities(such as Universities and Colleges), Online Universities,
Management development training centres, Education service providers, Non-academic service providers and
freelancers.
The benefits of this free zone include but are not limited to the following:
• 100% foreign ownership
• Full repatriation of profits and capital are permitted
• 100% tax free with a guaranteed 50 year exception from income, personal and corporate tax.
• Exceptions from custom duty of goods and services
DIAC is seen as bringing the very best of the international knowledge pool into one strategic location, to
continue its vision of being known as the regional knowledge centre.
9. Dubai Knowledge Village
Dubai Knowledge Village (DKV) launched in 2003, and is known as the destination for learning
excellence. Its picturesque campus sets the right environment for a knowledge-based sector with many
professional training centres and learning support entities.
This thriving knowledge community was founded as part of a long-term economic strategy to develop the
region’s talents, in an effort to introduce new skills and the latest learning methods and tools following
international standards of upgrading individual skill and professionalism.
The benefits include but are not limited to:
• 100% foreign ownership
• 100% freedom from taxes
• 100% repatriation of assets and profits and effortless visa issuance procedures.
DKV is a unique hub that offers the best selection of Human Resource Management, Consultation, Training
and Personal Development programmes on a picturesque 1km long campus in the heart of Dubai.
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UAE Free Zones
10. International Media Production Zone
Dubai's International Media Production Zone (IMPZ) seeks to create a environment for media production
companies from across the industry value chain, and from across the world, to interact and collaborate
effectively.
Catering exclusively to companies in the following industries – Graphic art, Publishing and Packaging – it is an
initiative of the Dubai government. It provides an environment of growth by building key facilities, investing
in infrastructure, and forming a unique free zone that incorporates industrial, commercial, residential and
community service projects under its mantle. The vast complex is housed on over 43 million square feet of
land, in the heart of commercial Dubai.
The initiative is part of Dubai's vision to develop itself into a global media hub. As such, it will provide a probusiness environment, sophisticated technology and community infrastructure to support and foster the
growth of media production.
11. Dubai Biotechnology & Research Park
The Dubai Biotechnology and Research Park (DuBiotech), is the region’s first business park dedicated entirely
to the global life science industry. DuBiotech’s aims to create, develop and advance the life sciences sector in
Dubai and the region by developing an industry cluster, establishing affiliations with international research
centers, educational institutions, regulatory bodies, and providing value-added services. DuBiotech aspires to
be the central hub for all life science industries for the Middle East.
The park offers drug discovery, R&D, manufacturing companies and industry specific service providers all the
support needed to make their presence. This includes suppliers of laboratory equipment and reagents, venture
capital firms, CROs, waste management firms, regulatory bodies etc.
Licensing and Activities
DuBiotech has identified a broad range of licensing categories and activities under which companies are
allowed to perform within the Park, which include:
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ƒherapeutics
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Diagnostics and Analysis
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Agricultural, Forestry, Horticulture, Food
Environment
Specialty Supplies
Equipment
Life Science Consultancy
Life Science and Biomedical Associations (Non Profit)
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UAE Free Zones
12. Dubai Outsourcing Zone
Dubai Outsource Zone (DOZ) is the perfect environment for companies that provide mid to high-end
outsourcing services and captives as well as serving as an offshore centre for disaster recovery facilities. Being
at the centre of trade, DOZ is well-positioned to cater to off shoring requirements from Europe, the US, the
Middle East, Asia and Africa.
Some of the key sectors that can thrive in DOZ are call centers, IT, finance, insurance, healthcare, logistics,
tourism, real estate, and energy with knowledge processes, research and development, and business continuity
and planning as the primary outsource functions. Dubai Outsource Zone combines all technologies in a
custom-made infrastructure that includes next-generation telecom, office space in intelligent buildings and
facilities management. The telecom services include:
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ƒeliable High-Bandwidth
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Connectivity
IP Telephony
Automatic Call Distribution
Interactive Voice Response
Predictive Dialing Systems
Satellite Communications Services
Technical Support
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UAE Free Zones
13. Dubai World Central (Dubai Logistics City)
Dubai Logistics City is optimally located alongside the apron of Al Maktoum International Airport and is in
close proximity to the Jebel Ali Port and Free Zone. DLC is positioned to serve a wide range of
transportation, logistics, and value-added operations within a single-bonded free zone environment. Due to
its adjacent location and direct connection with the Jebel Ali Port and Free Zone through the Dubai
Logistics Corridor (direct infrastructure connection, custom bonded), DLC will facilitate the
transportation of goods from air to sea and vice versa.
The categories of License available within DLC are as follows:
Logistics License:
Allows the holder to carry out specified logistics services (e.g. storage, transportation, distribution, sorting,
forwarding and clearing activities, order management, inventory management etc.). The license holder will be
able to pick up and deliver (but not sell) products within the UAE.
Industrial License:
Allows the holder to carry out a specified light manufacturing activity (e.g. blending, mixing, purifying,
assembling forming, repacking, or wrapping of products) by utilising hand labour or quiet machinery in a
manner which does not produce smoke, gas fumes, heat, light or other effects which may cause a
disturbance or nuisance to others. Industrial Licenses will not be issued without proof that an
Environmental Impact Assessment for the project has been carried out and approved by Dubai Municipality.
Trading License:
Allows the holder to import, export, sell, distribute and store items specified in the License. However, Free
Zone Enterprises holding a Trading License may only sell completed products in the UAE market
through a local distributor or a commercial agent which is properly registered in the UAE.
Service License:
Allows the holder to carry out services specified in the Licence within the DWC Free Zone and elsewhere in
the UAE (although additional local licenses may be required in some Emirates). Service Licences are issued to
Free Zone Enterprises supporting the logistics industry and will include services such as consulting, software,
training, repair, catering, insurance, and human resources services.
Education License:
Allows the holder to carry out educational and social services, educational, training and educational
consultancy services
46
UAE Free Zones
14. Gold and Diamond Park
The Gold & Diamond Park is a part of the Jebel Ali Free Zone Area, whereby all tenants can benefit from the
facilities offered by the free zone authority. Tenants can form their own companies having 100% ownership
and also easy access to obtain visas for owners and employees alike. Other facilities include:
• Healthy environment through proper ventilation systems, exhaust facilities and provision of acid disposal
points.
• Safety and security through 24-hour security (patrols & video surveillance), fire alarms and fire defense
systems.
• Handy labor accommodation and transport.
• Hallmarking provided by the Dubai Municipality's regular pickup services for all gold manufactured and
sold from the Gold & Diamond Park.
• Visitors centre attracting tourists and shoppers.
15. Sharjah Airport International Free Zone (SAIF-Zone)
Spread over 10 million square meters and equipped with the state of- the-art facilities, SAIFZONE has been
designed to cater to both local and international investors and offers the tools to cope with the rapidly
changing business environment in the region. Ideally located in the centre between the east and the west,
SAIF-ZONE is looking to become a major distribution centre for the European market and the Far East
market as well as catering to the growing demand from the CIS and Africa.
The various advantages of operating in SAIFZONE include:
• No corporate or personal income-tax
• 100 per cent foreign ownership and full repatriation of capital and profits.
• Access to the Sharjah International Airport which receives all categories of aircraft and handles all types of
cargo and has one of the most sophisticated hub stations in the region.
Investors can avail different types of licenses in order to do business in the SAIF-Zone.
• Industrial License - Allows the investor to import raw material, manufacture, process, assemble, package
and export the finished product. (Subject to clearance from SAIF-Zone Health & Environment Dept.)
• Commercial License - Allows the investor to import, export, distribute, consolidate and store items
specified in the license. There is a maximum limit of three similar product lines.
• General Trading License - As the name suggests, a large number of products fall within its ambit. This
type of license can be obtained under the commercial license.
• Service License - Allows the investor to carry out only specified services. (Unless restricted by the federal
or local authorities, all types of services are allowed within the SAIF-Zone).
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UAE Free Zones
16. Hamriyah Free Zone
Located 15 kilometers north of Sharjah city and based around Hamriyah Port in Sharjah, this new Free Zone
derives its strength from its strategic location which not only provides deep water access but also, being on the
UAE’s highway network, links all the seven Emirates and provides connections to neighboring Gulf States.
The Free Zone area consists of approximately ten million square meters of prime industrial and commercial
land and a deepwater harbor with enough room for expansion in future. It offers purpose built office
accommodation, warehousing and factory units and an international business centre having space for
Executive office suites with state-of-the-art conferencing and Internet facilities.
Over 1 million sq. meters is being zoned for developing a residential area, an international hotel and recreation
and leisure facilities on the beach and the Hamriyah sea water lagoon. In addition to usual investment
incentives of 100% foreign ownership, no corporate or personal income taxes, exemption from all commercial
levies, full repatriation of capital and profits and land lease up to 25 years renewable for further 25 years, the
special advantages offered by Hamriyah Free Zone include:
• Access to the Arabian Gulf and the Indian Ocean through the two ports of Sharjah situated on east and
west coasts linked by modern multilane highway network;
• Customs privileges for goods destined for Hamriyah Free Zone;
• Quick and simple procedures for approval of License Applications and unrestricted recruitment and
sponsorship of personnel and procurement of visas;
• Easy access to one of the most important cargo hubs of the region at Sharjah International Airport;
• Access to Internet, e-mail and other secretarial and day-to-day administrative services existing at the Free
Zone.
• With a highly flexible and dynamic management, Hamriyah Free Zone is all set to develop into a leading
industrial base of the UAE.
Investors can set up a different typesof legal entities in order to do business in the HFZ, Branch of foreign /
local company, free Zone Establishment (FZE) is a single share holder limited liability company which can be
incorporated in Hamriyah Free Zone. The minimum capital requirement for incorporating a Free zone
Establishment (FZE) is Dhs.150, 000 (Applicable for Land / Warehouses) (Approximately US$ 40,000).
However Free Zone Company (FZC) will be a similar incorporation with multiple shareholding (maximum 5
shareholders).
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UAE Free Zones
17. Ras Al Khaimah Free Trade Zone
Established in 2000, RAKFTZ is one of the fastest growing, most cost-effective free zones of the region.
With tax-free environment, customised solutions, hassle-free procedures, value-added services and all the
facilities that you expect from a free zone,
The advantages:
• 100% tax exemption
• 100% foreign ownership
• Transparent laws and regulations , 100% capital & profit expatriation.
• Strategic location with access to over 2.2 billion consumers.
• Simple and fast application procedures.
Types of Business License:
• Commercial License
• General Trading License
• Consultancy/Services License
• Industrial License.
A business at RAK FTZ can be registered as one of the following four legal entities:
New Establishments (100,000 DHS minimum share capital)
Free Zone Establishment - a new business entity with a sole business owner.
Free Zone Company - a new business entity owned by 2 - 5 partners.
Branches:
Local Branch - A branch of a domestic firm residing in the United Arab Emirates. The parent company should
have existed for more than a year (also applicable to a subsidiary company).
Foreign Branch - A branch of a foreign firm residing outside the United Arab Emirates. The parent company
should have existed for more than a year (also applicable to a subsidiary company).
18. Saadiyat Free Trade Zone
The zone covers an area of about 3,500 hectares, and will provide storage facilities for 67 commodities, such
as oil, gas, precious metals, food, etc. This feature makes the zone unique and first of its kind in the Gulf. The
zone has invited a number of international banks to apply for licenses to operate wholly within the free trade
zone as an offshore entity independent of the UAE Central Bank. The trade zone aims to serve 3.5 billion
people all around the world.
Special benefits include:
• The zone enables investors to store 67 commodities, such as oil, diamonds, copper, gold, etc.
• The Saadiyat Island is connected with the mainland by a six kilometer bridge, which makes it convenient
to travel from Abu Dhabi.
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UAE Free Zones
19. Abu Dhabi Airport FZ
Abu Dhabi Airport free zone was incorporated in March 2006 to spearhead the major redevelopment of the
Emirates aviation infrastructure. This was launched as a ambitious development from the Abu Dhabi
Government aimed at promoting long-term economic and tourism activity and to support in building a more
vibrant economy which promotes and attracts private sector investment.
The free zone provides it customers with great benefits such as:
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Congestion free facilities
Location within Abu Dhabi International Airport premises
Fast and efficient cargo clearance services
Easy access to airport apron
Access to international freight forwarders and logistics services
One stop shop solutions for all investor related services
Smart business facilities with advanced IT solutions
Onsite customs inspections
Online customer service
24 hour access to facility
20. TwoFour54
Named after the geographical co-ordinates of Abu Dhabi, twofour54's vision is to enable the development of
world class Arabic media and entertainment content, by Arabs for Arabs, and to position Abu Dhabi as a
regional centre of excellence in content creation across all media platforms including film, broadcast, music,
digital media, events, gaming and publishing.
twofour54's aim is to create a collaborative and supportive campus community; stimulating creative and
professional partnerships. There three pillars are supported by a business enabler tawasol, which provides
support to organisations and individuals looking to join the twofour54 community.
It offers media and entertainment organisations a complete range of services including:
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Registration and licensing for media businesses at twofour54.
Company and personal set-up services for your business and staff.
World-class studio production and post-production facilities supported by technical staff.
Broadcast services
Vocational media training
Industry investment and business support for Arab entrepreneurs
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UAE Free Zones
21. Masdar City – Abu Dhabi
Masdar is a multi-faceted company advancing the development, commercialisation and deployment of
renewable energy solutions and clean technologies. Masdar City, a six-square-kilometre special economic zone,
is a place where businesses can thrive and innovation can flourish. A low-carbon, renewable energy-powered
development, Masdar City not only embodies Abu Dhabi’s commitment to a sustainable future but is also
pioneering best practices in sustainable urban planning, design and development.
As a special economic zone, Masdar City offers, amongst other benefits, a rapid set-up process, reduced tax
footprint and pro-business environment. Economic benefits include:
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100% foreign ownership
Quick and easy set up
No corporate or personal taxes
Unrestricted repatriation of both capital and profits
No recruitment restrictions
No currency restrictions
Visa processing and Government services
For most companies, whatever their size or stage of development, there are three main ways to benefit from
engaging with Masdar City:
1) as a pilot-study partner exploring technology solutions for the city,
2) as a supplier that provides the products and solutions used to develop and operate the city, or
3) as a partner that operates from the city, thereby benefiting from its one-of-a-kind cleantech cluster
environment and from providing the city with products and solutions.
Business Licensing Services:
Masdar City facilitates quick and straightforward incorporation services to businesses, allowing them the legal
structure required to establish their businesses. Companies operating in Masdar City do so in accordance with
the Masdar City Companies Registration Regulations. It is Masdar City’s goal to see that each one of its
business partners and tenants enjoys a successful transition into the community. Partners can be licensed in
three ways:
Limited Liability Company (Limited)
Companies incorporated in Masdar City benefit from the unique business environment offered, which
includes: 100% foreign ownership, exemption from personal income and corporate taxes. The minimum
required paid up capital for incorporation of a LLC in Masdar City is AED 150,000.
Branch of Foreign / Offshore Company
Companies can register a branch office of a Foreign/Offshore company in Masdar City.
Branch of Local UAE Company
Companies can register a branch office of a UAE company in Masdar City.
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UAE Free Zones
22. Khalifa Industrial Zone (Kizad) - Abu Dhabi
World class infrastructure, transportation and logistics options, as well as its low operating cost environment
not only promote business efficiency they also make it easier to achieve business goals.
Kizad offers local and international investors easy access to local, regional and international markets, within a
low operating cost environment and a meticulously designed setting to make doing business easy. Kizad is set
to transform the way Industrial zones help businesses become and stay successful.
Kizad is an integral part of the Abu Dhabi Economic Vision 2030. With industry at the heart of its
diversification program, this Vision sets a clear roadmap to achieve sustainable growth of the Emirate’s
economy and the prosperity of its people. Kizad, with its massive 417sqkm of prime industrial land and worldclass facilities, is a statement of intent by the Government of Abu Dhabi, creating a wealth of opportunities
on a global scale.
It’s strategic location linking the east and the west, and its world-class transport infrastructure via sea, air,
roads and rail, gives businesses easy and efficient access to over 4.5 Billion consumers within four time zones.
With vertically integrated clusters setting new standards of industrial efficiency, competitive lease prices and
some of the lowest utilities costs in the world in a tax-free setting, Kizad provides businesses with
unparalleled, long term competitive commercial advantages.
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