In 2021, the United Arab Emirates (UAE) government revised the federal Commercial Companies Law (UAE government’s portal) to allow foreign investors to completely own certain businesses, removing the previous cap of 49% on their shares. Dubai became the first emirate in the UAE to pioneer the free zone model that offers foreign businesses attractive concessions and investment incentives, including tax exemptions and 100% ownership (Government of Dubai, FDI) of a company.
Over the years, Dubai developed more than twenty free zones for specific industries and sectors, such as the Dubai International Financial Centre (DIFC) for finance, and Dubai Media City for the media industry. However, Dubai World Trade Centre Free Zone (DWTCFZ) sets itself apart from other free zones. Last year, it launched the ‘Intelak Incubators’ initiative providing tailored accelerator and incubation programmes to foster startups and early level ventures.
Developed in 2016, as a part of the World Trade Center in Dubai, DWTCFZ has become a popular place to incorporate businesses in the region. In the first half of 2023, there was more than 250% increase in license renewals, climbing from 254 to 892. Additionally, 322 new companies joined the expanding global community of over 2,000 companies, marking a 32% increase compared to the previous year.
If you want to start your own company and think of Dubai as your dream destination, here is why you should consider starting your business in the DWTCFZ.
Dubai World Trade Centre Free Zone: An infrastructure marvel
DWTCFZ has a comprehensive infrastructure that includes modern office spaces, advanced communication systems, and modern transportation facilities. The DWTCFZ acts as a catalyst for business success and a magnet for entrepreneurs and rising industry leaders, promoting an environment of creativity and expansion.
Prominent cases like Kitopi, which increased its space from 5,000 to 21,000 square feet in 2022, highlight the role of DWTCFZ in expansion of various businesses.
The events and conferences held at DWTCFZ provide newer companies access to a large and diverse market. Home to many multinational corporations and local companies, DWTCFZ provides opportunities for networking and collaboration. In 2023, DWTCFZ held more than 100 business and consumer events spanning vital sectors including technology, sustainability, food and beverage, healthcare, and green economy.
Business friendly incentives
The DWTCFZ offers several business-friendly incentives, including no restrictions on repatriation profits and 100% foreign ownership. Additionally, it helps newer clients with simplified company registration and licensing procedures, allowing businesses to set up their operations quickly and easily.
Moreover, the DWTCFZ has a range of support services, such as legal, financial, and marketing, that help businesses establish themselves in the region.
Favourable regulatory environment
DWTCFZ’s transparent and efficient legal system gives businesses high certainty and predictability. Additionally, Dubai has a robust intellectual property regime that protects the rights of companies and promotes innovation. DWTCFZ provides businesses with a single point of contact for all regulatory and administrative matters. It means that investors can easily access all the information and support they need to comply with regulations and ensure their business operations are smooth and efficient.
DWTCFZ has implemented stringent anti-money laundering (AML) and counter-terrorism financing (CTF) measures to protect businesses and investors from financial crimes. These measures include robust Know Your Customer (KYC), customer due diligence procedures and the latest AML and CTF technologies and practices.
In conclusion, the DWTCFZ is an attractive destination for businesses looking to establish themselves in the UAE. It provides a range of benefits, including tax exemptions, 100% ownership, simplified registration, and a strategic location that connects businesses to the rest of the world.
DWTCFZ facilitates smooth workflow and saves companies time and effort. The free zone has a comprehensive infrastructure, a diverse workforce, and a favourable regulatory environment that provides companies with the mechanisms they need to succeed.
Setting up a company in one of Dubai’s free zones can be complex for business enthusiasts planning to start independently. Professional assistance is essential.
Hawksford is an international provider of corporate, private client and fund services.
Our team manages an international client base with entities in over 100 jurisdictions.
Not only are we physically present in all key time zones and international financial centres, but we have expanded our global reach in the Middle East to ensure we can deliver corporate solutions wherever our clients need them. Our new office in Dubai, UAE, is committed to meeting all our clients’ investment and business needs. From company formation to accounting and tax solutions, we offer a full range of tailored corporate services.
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