Free zones in the uae 2009

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Free zones in the uae 2009

  1. 1. Free Zones in the UAE Although the greatest possible care has been observed in drawing up this publication, the possibility always exists that certain information has in time become outdated or is no longer correct. PKF, therefore, does not accept any liability for the consequences resulting from activities undertaken on the basis of this publication. Consultation of an expert remains necessary at all times. Published by PKF, Dubai. April 2009 PKF is a member of PKF International Limited, an association of legally independent member firms Accountants & business advisers Free Zones in the UAE
  2. 2. PKF UAE VISION We will be the first choice for companies in their selection of professional advisers PKF UAE MISSION We will provide quality service to our clients by focusing on client specific needs and providing solutions to business problems, thereby adding value through expertise whilst maintaining integrity, professionalism and independence
  3. 3. Accountants & business advisers Free Zones in the United Arab Emirates
  4. 4. PKF - Free Zones in the UAE
  5. 5. Contents Preface 1 PKF in the UAE 3 Introduction 7 Economy 9 Jebel Ali Offshore 13 Ras Al Khaimah Offshore 15 Free Zones in the UAE 17 Free Zones in Dubai 21 Free Zones in Sharjah and the Northern Emirates 63 Free Zones in Abu Dhabi 77 About PKF 83 PKF International 83 PKF UAE Publications 87 Annexure 89 PKF - Free Zones in the UAE - Contents
  6. 6. PKF - Free Zones in the UAE - Contents
  7. 7. Preface The globalisation of trade and foreign investment over the past decade, as expressed in the World Trade Organisation (WTO), has significantly exposed economies to competitive pressures of the global economy. New global trading rules under the WTO present both steep challenges and fresh new opportunities to national economies. In this respect, trade integration will become a key policy objective if a country is to succeed in increasing the volume of trade and economic development. In pursuing this objective, there are a variety of trade instruments that countries in recent years have begun to develop – the most common of which are Free Trade Zones. Although the general concept of a Free Trade Zone is uniform in nature, one encounters a number of different types of Free Trade Zones in different countries. They vary according to national characteristics and the goals set for them by national governments. Free Trade Zone is not a new concept. It is at least as old as western civilisations, having existed in 300 BC in the Greek island of Delos, which as a result became one of the wealthiest islands in the world for nearly a century. It is estimated that there are now well over 1000 Free Zones operating in about 120 countries. The reason for this remarkable growth is that Free Trade Zones have been an extraordinary mechanism for fostering export-led industrialisation worldwide. They promote economic development by attracting investment and generating employment and foreign exchange earnings. Indeed, the zone concept is so powerful, that more and more countries are recognising a new paradigm of Free Zones. While the old Free Zone was often described as static, labour-intensive, incentive driven, the new zone paradigm is a dynamic investmentintensive, management driven one, enabling an integrated economic development tool. In the UAE, the first Free Zone at Jebel Ali came into existence in 1985 and provided international businesses and corporations a hub, which connected the East and the West and expanded the horizons of their operations. Today there are more than two dozen Free Zones in the UAE providing top class facilities and infrastructure for doing business PKF - Free Zones in the UAE - Preface 1
  8. 8. and most importantly are industry specific in nature. This booklet contains all relevant information about these zones. We sincerely believe that the information provided in this booklet would be a guiding torch to the investor for selecting a particular zone for his business. 2 PKF - Free Zones in the UAE - Preface
  9. 9. PKF in the UAE PKF UAE is a member of PKF International Limited, an association of legally independent member firms. PKF UAE operates as a branch of a foreign company providing audit and management assurance, business consulting, regulatory and taxation and corporate finance services. We provide an integrated service spanning multiple disciplines to a large number of local, regional and international clients. With over 30 years presence in the UAE we have offices at Dubai, Sharjah, Abu Dhabi, Jebel Ali Free Zone, the Dubai Internet City. Through each of our offices, our clients have access to the expertise and experience of more than 100 qualified professionals including Chartered Accountants, Cost Accountants, Certified Public Accountants, Certified Internal Auditors and MBAs. Range of Services PKF professionals in the UAE can provide expert advice on various business issues. Our services include: Audit and Management Assurance Services • External Audit • Internal compliance audit • Internal audit - compliance with the requirements of the Dubai Financial Services Authority • Organisation reviews and system studies • Due diligence reviews • Forensic and other investigations • Training and consulting on IFRS • Back office support services – accounting and payroll • Outsourced accounting and payroll services for companies registered in the Dubai International Financial Centre • Management information systems PKF - Free Zones in the UAE - PKF in the UAE 3
  10. 10. Management Advisory Services • Business practices (process) assessment • Business risk identification • Accounting and procedure manuals • Market analysis and feasibility studies • Financial projections • Information memoranda • Business and share valuations • Identification and valuation of intangible assets on a business acquisition • Corporate structuring, acquisitions and disposals • Joint ventures and strategic alliances • Advice on partner/shareholder entry/exit • Fund raising Offshore and Free Zone Services • Free Zone and offshore company formation • Company secretarial services • Registered agents services • Entry strategy • Taxation Locations in the UAE DUBAI / DIFC AI Maidan Tower 2, Suite 301-303, AI Maktoum Street, P.O. Box 13094, Deira, Dubai, U.A.E. Tel: (+971) 4 223 6508; Fax: (+971) 4 223 4524 E-mail: dubai@pkfuae.com DUBAI INTERNET CITY Office No.217, Bldg. 13, P.O. Box 500364, Tel: (+971) 4 390 1410/11; Fax: (+971) 4 390 8836 Dubai Internet City, Dubai, U.A.E. E-mail: dic@pkfuae.com 4 PKF - Free Zones in the UAE - PKF in the UAE
  11. 11. JEBEL ALI FREE ZONE Lease Office Building 16, Office No.133, 1st Floor, Jebel Ali Free Zone, P.O. Box 16952, Jebel Ali, U.A.E. Tel: (+971) 4 881 5452; Fax: (+971) 4 881 5451 E-mail: dubai@pkfuae.com ABU DHABI The Blue Tower, 15th Floor, Sheikh Khalifa Street, P.O. Box 7479, Abu Dhabi, U.A.E. Tel: (+971) 2 626 1715; Fax: (+971) 2 626 1716 E-mail: abudhabi@pkfuae.com SHARJAH Golden Towers, 11th Floor, AI Buhaira Corniche, P.O. Box 6207, Sharjah, U.A.E. Tel: (+971) 6 574 0888; Fax: (+971) 6 574 0808 Visit us at www.pkfuae.com PKF - Free Zones in the UAE - PKF in the UAE 5
  12. 12. United Arab Emirates Ras Al Khaimah Umm Al Quwain Ajman Sharjah Dubai Abu Dhabi Al Ain 6 PKF - Free Zones in the UAE Fujairah
  13. 13. Introduction The United Arab Emirates (UAE) was established on 2nd December 1971 and is a federation of seven emirates, namely: Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Umm Al Quwain, Ajman and Fujairah. The United Arab Emirates is situated in the Eastern part of the Arab world. It overlooks the Gulf of Oman to the East and the Arabian Gulf to the North. The Arabian Gulf and Gulf of Oman are linked by the Hormuz Strait. The UAE covers an area of approximately 83,600 square kilometers (32,654 square miles), including numerous islands. The coastal area consists primarily of salt marshes. Inland, the topography is predominantly desert, sand dunes and gravel plains with isolated oases, the largest of which are located at Al Ain and Liwa. The Hajar Mountains lie close to the sea on the East coast. The Emirates have a common cultural heritage but the tribal links are very strong within each Emirate. Abu Dhabi is ruled by the Al Nahyan family, which belongs to the Bani Yas tribe. Dubai is ruled by the Al Maktoum family, which belongs to the Al Bu Falasah tribe. The other emirates are also ruled by various families, which belong to powerful tribes of the respective regions. The three most populated Emirates are Abu Dhabi, Dubai and Sharjah; approximately 83 percent of the total population belongs to these emirates. The official language is Arabic, and all communications with the government must be in Arabic, although among the expatriate communities various other languages are spoken. Foreigners will find that English and Hindi / Urdu are widely understood. English is used for all written communication between businesses. PKF - Free Zones in the UAE - Introduction 7
  14. 14. 8 PKF - Free Zones in the UAE - Introduction
  15. 15. Economy The UAE economy has been transformed from a subsistence economy to one of the most prosperous and highly advanced societies in the world. The economy experienced a sudden explosion in GDP in the 1970s and 1980s due to rising oil prices and adverse conditions in the oil market. The government has adopted a policy of controlled diversification, which led to the rise of non-oil sectors and most importantly trade. A combination of diversification and financial reserves has given the UAE economy considerable resilience, which is reflected in the economy. New corporate, stock market and banking legislation, review of laws and development of additional legislative framework are under review. The government is constantly aiming at promoting efficiency and transparency which will further boost the economic development in the UAE. Petroleum dominates the economy of the UAE. At one time an underdeveloped area, by 1985 the region had the highest per capita income in the world. The immense wealth has been invested in capital improvements and social services in all seven of the Emirates. Petroleum production is centered in Abu Dhabi and Dubai. Industrial development is essentially petroleum related and is limited by a lack of trained personnel and raw materials. The country is on the threshold of a new era involving a booming economy and fast paced modernisation. Dubai is seeking long term investments as the Emirate’s regional status opens huge opportunities for multinationals interested in the region’s markets and its neighbouring areas. The retail sector is expected to boom in the next five years due to booming population and increased consumer demands. Tourism, commercial, residential and population growth in the UAE coupled with the expanding road network infrastructure will increase the total size of the retail sector. PKF - Free Zones in the UAE - Economy 9
  16. 16. Population The population has been growing at a steady rate for the last five years. The UAE has the highest population growth rate in the Arab World due to improved health services and the ongoing migration of expatriates to the country. Despite this sharp growth, the UAE has maintained its position as having one of the highest per capita incomes in the World. The growth has increased the demand for all kind of goods. Consequently there has been growth in trade and related activities like imports, manufacturing, etc. Population (in millions) (Estd) Total 2005 4.110 2006 4.230 2007 4.490 Source: Business Monitor International Limited Foreign Trade The foreign trade has attained a noticeable and continual increase throughout the last five years. The increase in imports is accredited to intensification of the re-export trade, a distinctive fact of the UAE economy. The increase has been further supplemented by the development of capital and consumption goods. Foreign Trade (US$ in billions) (Estd) Imports Export 2005 74.49 117.29 2006 88 145.59 2007 116.60 208.13 Source: Business Monitor International Limited Gross Domestic Product (GDP) The GDP is growing at a steady rate over the last five years. The GDP per capita for the year 2007 is estimated to be US$ 43,698. Total GDP for the year 2007 was estimated at AED 698 billion of which the non-oil sector to attract investments of expertise and capital, the governments of the individual Emirates contributed AED 437 billion. Estimates for GDP in 2008 are AED 785.8 billion with non-oil sector seeking to provide an attractive business environment. The GDP by sector for 2005, 2006 and 2007 is as follows: 10 PKF - Free Zones in the UAE - Economy
  17. 17. GDP (AED in billions) (Estd) Oil sector GDP Non-oil sector Total GDP 2005 173 312 485 2006 223 375 598 2007 260 437 697 Source: Ministry of Planning PKF - Free Zones in the UAE - Economy 11
  18. 18. 12 PKF - Free Zones in the UAE - Economy
  19. 19. Jebel Ali Offshore The announcement of the Jebel Ali Free Zone Offshore Companies regulation in January 2003 by the Jebel Ali Free Zone Authority, has been highly appreciated by the investors. The regulation permits formation of offshore companies within the Free Zone and confirms the Free Zone’s commitment to continuous growth in a rapid, dynamic and changing economic environment keeping pace with world-wide developments. The Offshore companies can be suitably utilized as an investment company; holding company; real estate holding company; for further investments in local or Free Zone companies; and for International Trading. Firms of accountants and lawyers as approved by the Authority are permitted to provide services to clients for registering offshore companies, registered office and for acting as agents for the companies. Salient features of the offshore companies are: • Limited Liability Company • No minimum capital requirement • Requirement to have an approved registered agent either within the Free Zone or in the Emirate of Dubai • Requirement to appoint shareholder, Directors, Manager and Secretary • Bearer shares not permitted • No personal or corporate income tax • Issue of shares of only one class permitted. • Requirement to have accounts audited on annual basis. Offshore companies are allowed to: • Have contacts with legal consultants, lawyers, accountants and auditors • Have bank account in theUAE • Become shareholders in a new or existing Free Zone Entities or an LLC • Hold shareholders and directors meeting within the UAE • Carry out International Trading PKF - Free Zones in the UAE - Jebel Ali Offshore 13
  20. 20. Offshore companies are not allowed to: • Carry on business with persons resident in the UAE • Own an interest in real estate property situated in the UAE, other than a lease property referred to in the regulations or approved by the authorities • Carry on a banking business • Carry on business as an insurance or re-insurance company, insurance agents or insurance brokers • Carry on any other business which may, by regulations be prohibited by the authorities 14 PKF - Free Zones in the UAE - Jebel Ali Offshore
  21. 21. Ras Al Khaimah Offshore Similar to the concept of offshore company, the Ras Al Khaimah Free Trade Zone Authorities have laid down the regulations to incorporate International Companies in the Ras Al Khaimah Free Trade Zone (RAKFTZ). The regulation prescribes that the incorporation of the International Company shall be through a registered agent. The firms of accountants and lawyers approved and licensed for that purpose by the RAKFTZ are permitted to provide services to clients for registering International companies, registered office and for acting as the agents for the companies. Salient features of the International Company are: • Companies will have a limited liability status and the possible name suffixes are “Limited” or “Incorporated” or their abbreviations “Ltd” or “Inc”. • No minimum capital requirement • Requirement to have an approved registered agent either within the Free Zone or in the Emirate of Dubai • Requirement to appoint shareholder, Directors, Manager and Secretary. • Bearer shares are permitted. However, the bearer shareholding is permitted with a restriction that it shall be held by the registered agent acting as a nominee on behalf of the beneficial shareholder. The beneficial shareholders details and any change thereof would be required to be furnished to the RAKFTZ. • Shares can be of different classes. • Provision for the shareholders/members to apply the inheritance law of their choice. • No personal or corporate income tax • No requirement to have the accounts audited on an annual basis. International companies are allowed to: • Have contacts with legal consultants, lawyers, accountants and auditors • Have bank account in the UAE • Become shareholders in a new or existing Free Zone Entities or an LLC PKF - Free Zones in the UAE - Ras Al Khaimah Offshore 15
  22. 22. • Hold shareholders and directors meeting within the UAE • Carry out International Trading International companies are not allowed to: • Carry on business with persons resident in the UAE • Carry on a banking business • Carry on business as an insurance or re-insurance company, insurance agents or insurance brokers • Carry on any other business which may, by regulations be prohibited by the authorities Conclusion In short to attract investments of expertise and capital, the governments of the individual Emirates seek to provide an attractive business environment. The following are some of the principle features of the economic and business environment in the UAE: A virtual absence of taxation. • Excellent communications systems. • A well-structured financial sector with no exchange control regulations. • A coordinated infrastructure that provides all essential utilities to the major centers. • Free Trade Zones that ensure ease of registration and efficient operating facilities. • An attractive social environment, including modern educational, medical and recreational facilities. • Liberation of property ownership, which is one of the factors contributing to the UAE’s booming property market. The Government’s far-sighted planning and fast execution of projects have led to the most phenomenal development in the second half of the last century - the rise of a city, the emergence of a new economy. 16 PKF - Free Zones in the UAE - Ras Al Khaimah Offshore
  23. 23. Free Zones in the UAE The Free Trade Zones (FTZs) of the UAE are a veritable opportunity for the country to showcase its development and special area approach. The UAE in the last decade has witnessed a quantum increase in industrial development and one of the most significant and remarkable achievements is the success of Free Zones. Free Trade Zones are established under a special Decree passed by the Ruler of the Emirate in which the Free Zone is created. To date the Free Zones have been successful in attracting a large number of foreign companies and foreign direct investment. The share of the Free Zones in non-oil exports has increased considerably along with the net exports from the Free Zones. The incentives offered by various Free Zones of the UAE are generally similar and include: 100% foreign ownership 100% tax exemption Quick approval procedures Full repatriation of capital and profits Extended leases Abundant and inexpensive energy An independent Free Zone Authority (FZA) governs each Free Zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ. Investors can either register a new company in the form of a Free Zone Establishment (FZE)/Free Zone Company (FZCO) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. An FZE is a limited liability establishment, incorporated in a Free Zone, owned by one natural or judicial person, whereas an FZCO is a limited liability company incorporated in a Free Zone by more than one shareholder, generally up to five. FZE/FZCO are governed by the rules and the regulations of the Free Zone in which they are established. There is a minimum capital requirement ranging from AED 50,000 to AED 1,000,000 depending upon the selected Free Zone. PKF - Free Zones in the UAE - Free Zones in the UAE 17
  24. 24. Once a legal presence has been established in the Free Zone, the business will need to lease premises or land and acquire a license from the FZA. Different types of licenses are issued in different Free Zones, however companies with valid licenses only can conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE registered official agent is required. Services and products can be obtained from and within the UAE without an agent. The licenses issued by the FZA can be renewed annually as long as a lease agreement is in force with the FTZ. Given hereunder are the various Free Zones established in the Emirate of Dubai: 1. Jebel Ali Free Zone 14. Dubai Multi Commodities Center 2. Dubai Cars and Automotive Zone 15. Jumeirah Lake Towers 3. Gold and Diamond Park 16. Dubai Flower City 4. Techno Park 17. Dubai Airport Free Zone 5. Dubai Internet City - Tecom 18. Dubai Healthcare City 6. Dubai Media City - Tecom 19. Dubai Silicon Oasis 7. Dubai Studio City - Tecom 20. Dubai International Financial Center 8. Int’l Media Production Zone - Tecom 21. International Humanitarian City 9. Knowledge Village - Tecom 22. Dubai Logistics City 10. Dubai International Academic City - Tecom 23. Dubai Maritime City 11. Dubai Outsource Zone - Tecom 24. Dubai Textile City 12. Energy & Environment Park - Tecom 25. Heavy Equipment & Trucks City 13. Dubai Biotechnology & 26. Dubai Auto Parts City Research Park - Tecom Given hereunder are the various Free Zones established in the Emirate of Sharjah and the Northern Emirates: 1. Sharjah Airport Free Zone 2. Hamriyah Free Zone 3. Ajman Free Zone 4. Fujairah Free Zone 5. Fujairah Media Zone / Creative City 6. Ahmed Bin Rashid Free Zone (UAQ) 7. Ras Al Khaimah Free Zone 8. Rak Media City (RAKIA) 18 PKF - Free Zones in the UAE - Free Zones in the UAE
  25. 25. Given hereunder are the various Free Zones established in the Emirate of Abu Dhabi: 1. Abu Dhabi Airport Free Zone 3.Two Four 54 2. Free Trade and Logistics Zone (Taweelah) The UAE Free Zones have been among the strong pillars of the country’s economic performance attracting much foreign investments, creating thousands of jobs, and facilitating the needed transfer of technology into the country. Together, the Free Zones account for more than half of the country’s non-oil exports and underpin the UAE’s ranking as the third most important re-export centre in the world. The Free Zones help in keeping the engine of economic diversification rolling by attracting foreign investment in the private sector, which is central to the region’s overall plan aimed at reducing its economic dependence on oil, while creating employment for its nationals. Moreover, the Free Zones could prove to be the mechanism not only for a new impetus to diversification, but also for changing the very face of economic activity in this region. PKF - Free Zones in the UAE - Free Zones in the UAE 19
  26. 26. 20 PKF - Free Zones in the UAE - Free Zones in the UAE
  27. 27. FREE ZONES IN DUBAI PKF - Free Zones in the UAE - Free Zones in Dubai 21
  28. 28. THE JEBEL ALI FREE ZONE [JAFZ] The Jebel Ali Free Zone (JAFZ) was established by decree No. 1 of 1985 and is located in the Emirate of Dubai. It is around the world’s largest man-made port. Jebel Ali was initially seen as the ideal base for multinationals to warehouse and distribute their products in the Gulf. Over the years, the range of industries has grown from distribution to include the whole spectrum of manufacturing, trading and services and the market has grown to cover regions well beyond just the Middle East. The Free Zone is home to approximately over 6000 companies. Features • Excellent support service from Dubai Ports Authority’s two modern terminals. • On-site chamber of commerce, international banks, insurance companies, consultancies, etc. • Mortgaging of company-owned facilities (excluding leased land). • Lease period up to 50 years. • Types of activities include manufacturing, processing, assembling, packaging, import/ export, distribution, storage, services, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. Facility costs and type of license Facility Size Land Min. 5,000 sq. mts Pre-built factory & warehouse 313 - 556 sq. mts with office space Office Min. 50 sq. mts FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Branch Registration fee one time AED 5,000 Cost in AED per annum 20 - 80 per sq. mt 120,000 - 220,000 1,800 - 2,200 per sq. mt 22 PKF - Free Zones in the UAE - Free Zones in Dubai
  29. 29. Types of Licenses Industrial Trading Service National Industrial General Trading Cost in AED per annum 5,500 5,500 - 12,500 5,500 5,500 30,000 • These figures are indicative and subject to change DUBAI CARS AND AUTOMOTIVE ZONE (DUCAMZ) DUCAMZ was established with the objective of re-exporting used cars to the Asian and African Region where the demand exists and continues to grow. This zone is situated within the Dubai city and comprises of one million square meters of bonded area. The location has easy access to all airports and seaports in the region. From here the automobiles are reloaded onto feeder vessels, or on to trucks which travel throughout the region on a modern network of highways, linking the neighbouring countries to the Middle East and beyond. This area is used for the purpose of the re-export of cars. The vehicles are categorized into two groups, left-hand drive vehicles which are exported into the local markets and are subject to local regulations and right hand drive vehicles which are mainly exported to India, Afghanistan, Pakistan, Yemen and other African Countries. Features • Government support services. • Competitive freight charges. • Ease of administration problems. • No restrictions on import of automobiles. • No import duties. • Hassle free clearance from Police (traffic department), Customs, Port and Banks. • Excellent support systems. • The facilities could be leased for 50 years. • Type of company activities would include trading in cars only. PKF - Free Zones in the UAE - Free Zones in Dubai 23
  30. 30. Form of registration • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 100,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 100,000. Facility costs and type of license Rental facility Size Office Units (for service) Min 17 sq.mts Warehouse Min 334 sq.mts Open land Min land 1000 sq.mts Registration Fee one time (FZCO) AED 20,000 Registration Fee one time (FZE) AED 15,000 Registration Fee one time (Branch) AED 10,000 Type of License Trading Service Cost in AED per annum 2,000 per sq.mt 52,000 approx. 20 - 30 per sq.mt Cost in AED per annum 10,000 10,000 • These figures are indicative and subject to change GOLD & DIAMOND PARK (GDP) GDP is a center for gold and diamond manufacturers, traders and retailers. The center receives special requests from customers for custom made jewellery and other mementos. GDP is owned by EMAAR and through a long term agreement with Jebel Ali Free Zone provided with Free Zone facilities. The park has full Free Zone facilities including 100% foreign ownership. GDP is a competitive place to shop and an enviable location for retailers and manufacturers. Features • Government support services. • Retail shopping facility for visitors. • 24 hrs security services. • Chiller systems free of cost. 24 PKF - Free Zones in the UAE - Free Zones in Dubai
  31. 31. • Worker accommodation ( as per availability) • The facilities could be leased for 15 years. • Central gas distribution system • Type of company activities include gold and diamond trading, designing, manufacturing and crafting of gold and diamond jewellery, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital AED 100,000. Facility, costs and type of license Facility Size Cost in AED per annum Retail outlets No space restriction Rate decided by the management Pre-built manufacturing/office units 310 sq.ft -1200 sq.ft 100 - 200 per sq.ft approx Registration Fee - None Type of License Manufacturing Trading Cost in AED per annum 5,500 5,500 • These figures are indicative and subject to change. TECHNOPARK (TP) TechnoPark (TP) is a fully owned subsidiary of Economic Zones World; which is a part of the government owned organisation that developed the Jebel Ali Free Zone and internationally renowned DP World. It was established according to Law No. 1 of 2003 issued by H.H. the Ruler’s Court and designed to be the leading local economic zone in the Middle Eastern Region. TP aims at developing a knowledge-based technologycentric sustainable business hub, which will not only support the country’s research and development needs in its core sectors but will also support the nation’s long term economic development and growth. TP is about 3 miles from the Jebel Ali Airport and offers high tech industries, with special attention to Desalination, Oil and Gas, a chance to establish themselves in a state-of-the-art facility. PKF - Free Zones in the UAE - Free Zones in Dubai 25
  32. 32. TP is focused on Research, Development and Studies in the field of the country’s core economic sectors viz Energy including Oil and Gas, Desalination and Water Resource Management, Environmental Resource Management and hi- technology driven knowledge based industrial development. The Park’s R & D initiatives focus on nurturing business ideas or new technologies in respective areas and are also directed at improving the existing technologies in the country’s core economic sectors to enhance their production efficiencies. TechnoPark is the official UAE and Middle Eastern representative of the IASP (International Association of Science Parks) and a member of the IDA (International Desalination Association). TechnoPark joins inventors with investors and encourages new ideas to be developed to further increase the awareness and commitment of the UAE in areas such as Oil, Solar Energy and Water reuse. TP actually followed the local rules and regulations of the Emirate of Dubai and is consequently involved with and related to various concerned authorities and departments through a one stop shop (OSS) concept. However, TP also allows branches of Free Zone Establishment (FZE) or Free Zone Companies (FZCO) to be established in the park, thus the branch of the FZE or FZCO can enjoy the benefits of being a 100% foreign owned company. Features • 100% foreign ownership. • The freedom to repatriate both capital and profits. • Abundant inexpensive energy supply. • Efficient transport and distribution facilities. • One Stop Services. • TP is different from other Free Zones as it provides the best of both worlds ie TP is a local economic zone with additional privileges similar to those of the Free Zones. Forms of registration • Limited Liability Company (commercial/ industrial) • Branch of a Free Zone Establishment (FZE) • Branch of a Free Zone Company (FZCO) • Branch of a local and Foreign Company 26 PKF - Free Zones in the UAE - Free Zones in Dubai
  33. 33. Facility costs and type of license Facility Size Office Varies Warehouse Varies Land Min. 10,000 sq.mts DWC LLC Registration Fee one time AED 10,000 Type of License Trading Service Industrial Cost in AED per annum Varies Varies 25 - 80 per sq.mt Cost in AED per annum 5,500 5,500 5,500 • These figures are indicative and subject to change DUBAI INTERNET CITY (DIC) - Tecom The Dubai Internet City (DIC) is a part of the Dubai Technology and Media Free Zone. It was formed under Law No. 1 of 2000 of the Emirate of Dubai. The DIC provides a knowledge-economy ecosystem that is designed to support the development of Information and Communications Technology (ICT) companies. It is the Middle East’s biggest IT infrastructure built inside a Free Trade Zone. The DIC is fully supported by the Government of Dubai and has established Free Zone specific corporate laws that empower the companies in the community and help them grow. Within a short span of time many global ICT companies have established themselves in the Dubai Internet City. The Dubai Internet City is a strategic base for companies targeting emerging markets in a vast region extending from the Middle East to the Indian subcontinent and Africa to the CIS countries, covering 1.6 billion people. Features • State-of-the-art technology. • World class technical infrastructure (high bandwidth, low telecom cost, high speed PKF - Free Zones in the UAE - Free Zones in Dubai 27
  34. 34. support infrastructure etc) built by CISCO, SUNMICROSYSTEM, SIEMENS. • State-of-the-art urban infrastructure (cost competitive, flexible office space, etc). • Largest commercial internet protocol telephony system in the world. • Stringent cyber regulations. • Rich network that companies can tap for resources, partnerships and ideas.  • Easy and fast company registration and licensing procedures. • Lease up to 20 years. • Type of company activities include Software Development, Business Services, Web Based and e-Commerce, Consultancy, Education and Training, Sales and Marketing and Back Office Operations, etc. Form of registration • As a branch of a foreign company -no minimum capital required • As a branch of a UAE company-no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - Minimum share capital is AED 50,000 and the maximum depends on the authorities after review of the business plan. Facility costs and type of license Facility Size Office Min. 700 sq.ft Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Service Cost in AED per annum 180 per sq.ft Cost in AED per annum 15,000 • These figures are indicative and subject to change. DUBAI MEDIA CITY (DMC) - Tecom The Dubai Media City (DMC) is a part of the Dubai Technology and Media Free Zone. It was formed under Law No. 1 of 2000 of the Emirates of Dubai. The Dubai Media City is rapidly emerging as a global media hub. The City provides an advanced infrastructure and supportive environment for media-related businesses to operate globally out of Dubai. 28 PKF - Free Zones in the UAE - Free Zones in Dubai
  35. 35. The DMC is fully supported by the Government of Dubai and has established Free Zone specific corporate laws that empower the companies in the community and help them grow. The facility offers an environment that allows companies and individuals to operate with collective synergy and freedom. The Dubai Media City emphasizes “The Freedom to Create”. The DMC brings to the media community an advanced infrastructure based upon a global interconnected network, linked by satellites, computers, internet, television, radio, journalism, cinema and film production. The City is already home to many international companies including global giants such as CNN, Reuters, Sony Broadcast & Professional, McGraw Hill Publishing, Bertelsmann, and MBC, along with regional companies and new start-ups. Features • The most advanced scalable IT network. • Satellite Uplink / Downlink facilities. • Post production studios and facilities. • Shared Business Centers. • Customer Care Center (provides all technical and support service). • Special facilities for professional freelancers. • 50 year lease contract for land and building. • Type of company activities include broadcast services, music, video/audio publishing, production and post-production, advertising agencies, studios, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - Minimum share capital is AED 50,000 and the maximum depends on the authorities after review of the business plan. PKF - Free Zones in the UAE - Free Zones in Dubai 29
  36. 36. Facility costs and type of license Facility Size Commercial Offices 700 sq.ft onwards Business Centre Varies Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Broadcasting company Publishing Above the line (one activity) Below the line (one activity) Other Commercial Freelancer Segment (one activity) Cost in AED per annum 200 per sq.ft 350 - 450 per sq.ft Cost in AED per annum 25,000 - 40,000 20,000 20,000 15,000 15,000 7,500 • These figures are indicative and subject to change. DUBAI STUDIO CITY (DSC) - Tecom Dubai Studio City (DCS) is a Free Zone dedicated to facilitate the creation and development of an environment and world-class infrastructure to foster the growth of the television, film and music industries in the region. DSC is also a part of the Dubai Technology and Media Free Zone. Designed to accelerate the growth of the broadcast, film, television and music production industries, Dubai Studio City (DSC) is an ultra-modern facility integrating every component of content production & broadcast under one roof. Spread across 22 million square feet, it will include production, post-production, broadcast, equipment rental, freelancers, commercial offices, business centre and satellite facilities among others. It will also have residential areas, hotels, an entertainment centre, film schools and training institutes. This unique combination of world-class infrastructure, qualified professionals and unique networking environment will make it the ideal location for creative people to unleash their imagination. DSC offers an industry cluster environment 30 PKF - Free Zones in the UAE - Free Zones in Dubai
  37. 37. with excellent networking opportunities. With all the elements of the film entertainment industry under one roof, support services such as marketing and ancillary services are also available, making Dubai Studio City an ideal destination for the audio-visual industry. Over the past few years, the audio-visual industry has witnessed a revolutionary change. With the rapid increase in the number of TV channels, the fastest-growing media industry today is TV Content Production and Distribution. Technically advanced animation films are gaining popularity, as digital portable devices reinvent the music industry. In such a pulsating scenario, it makes sound business sense to invest in a costcompetitive development like Dubai Studio City which has the potential to make history. Dubai Studio City aims at attracting investors from the production and broadcast industries. Companies providing support services like animation, dubbing, make-up, costume design, casting, talent agencies are also invited to be a part of Dubai Studio City. Film schools and universities offering accredited programs, as well as film workshops and short courses will be made available at Dubai Studio City. The institutes and education centres will help identify and groom future talent for the industry. Features • Industry Cluster Environment • Advanced and scalable Telecoms and Broadband • Networking Opportunities • Tap into the creative and innovative energy in the zone for new ideas • Excellent networking opportunities in the Media Hub • Commercial, residential, educational and recreational facilities • Type of company activities include TV and radio broadcasting, broadcast management, filmed entertainment, film production / post production, sound production, various production services, music & entertainment etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital AED 50,000 – AED 2,500,000 depending on the type of license. PKF - Free Zones in the UAE - Free Zones in Dubai 31
  38. 38. Facility costs and type of license Facility Size Commercial Offices Varies Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (branch) AED 3,500 Type of License TV & Radio station (terrestrial /satellite) TV & Radio network (terrestrial /satellite) Broadcast Management Cost in AED per annum 200 per sq.ft apprx Cost in AED per annum 25,000 40,000 15,000 • These figures are indicative and subject to change. INTERNATIONAL MEDIA PRODUCTION ZONE (IMPZ) - Tecom The International Media Production Zone (IMPZ), the first dedicated trade zone created in the region for media-related production activities. The new initiative is a part of Dubai Technology and Media Free Zone and His Highness Sheikh Mohammed’s vision to develop Dubai into a media hub, provides a highly pro-business environment and a complete technology and community infrastructure to support and foster the growth of media production. Dubai’s International Media Production Zone (IMPZ) is a unique cluster environment for media production companies from across the industry value chain and from across the world, to interact and collaborate effectively. IMPZ caters engaging in Graphic Art, Publishing and Packaging, thus providing a pro-business environment, sophisticated technology and community infrastructure to support and foster the growth of media production. Companies joining IMPZ can avail of 100 per cent ownership. Exempt from almost all corporate taxes and personal taxes including those for machinery, equipment, raw materials and spares utilized by the industry. Co-existing at a single location will enable print companies to coordinate production activities efficiently with feeder companies like machinery and equipment providers and suppliers of raw materials and spares. For small and medium-sized businesses, the time and costs involved in sourcing requirements will 32 PKF - Free Zones in the UAE - Free Zones in Dubai
  39. 39. be considerably reduced, as they can avail of several shared services. Superior infrastructure for various activities, available as leasehold land and distinct units for printing, production and warehousing. Printing companies also have the option of taking multiple units or having a combination of both land and production units. IMPZ will deploy and promote eco-friendly industrial environments, where tested concepts and practices will be adopted to recycle waste and enable companies to utilize each others’ by-products instead of disposing them as waste. Renewable energy sources will be included in the site’s infrastructure to guarantee reliable and clean power. The following clusters are allowed in IMPZ like Printing and Manufacturing Machinery, Printing Press, Packaging, Publishing, New Media like Digital and Interactive Game Development , Media Services and Storage. Features • State-of-the-art communications. • High-quality thermally-insulated production units. • Complete facility for production operations. • The land could be leased for 30 years. • Type of company activities would include pre-press, printing, post-press, distribution services, logistics services, support service providers, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - share capital is dependent on the business activity and varies from AED 200,000 to AED 500,000. Facility costs and type of licenses Facility Size Office space Varies Production/Warehouse units Varies with attached offices Land Varies Registration Fee AED 3,500 (one time fee) Cost in AED per annum 150 – 250 per sq.mt Varies Varies PKF - Free Zones in the UAE - Free Zones in Dubai 33
  40. 40. Type of License General Segments Publishing Cost in AED per annum 15,000 20,000 • These figures are indicative and subject to change. DUBAI KNOWLEDGE VILLAGE (DKV) - Tecom Knowledge Village was formed under Law No. 1 of 2000 of the Emirate of Dubai. DKV is set up to position the Dubai Technology and Media Free Zone as a center of excellence for learning and innovation. This new education and training hub is also set up to complement the Free Zone’s other two clusters: Dubai Internet City as IT hub and Dubai Media City as Media hub. DKV is a vibrant, connected learning community that will develop the region’s talent pool and accelerate its move to the knowledge economy. Knowledge Village will provide the infrastructure for developing, sharing and applying knowledge. In addition, KV will facilitate, promote, and become the flagship for e-Learning throughout the region. Features • Government support services. • Conference centers. • Dormitory. • Multimedia library and other common facilities. • The facilities could be leased for 50 years. • Type of company activities include IT and Media Corporate Schools, Executive Education Centre, HR Development Centre, Professional Training Centers, Vocational Training Centers, Assessment Centre, Testing Centre, Linguistic Institute, Innovation Centre, Academic Service Provider, School, e-Learning Provider, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital varies from AED 50,000 – AED 2,500,000 depending on the type of license 34 PKF - Free Zones in the UAE - Free Zones in Dubai
  41. 41. Facility costs and type of licenses Facility Size Open offices (furnished) No space restrictions Closed office /Exec temp Offices Varies Commercial office (unfurnished) No space limit Retail Offices Various sizes Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License University segment School segment Boarding School General segment Freelancer Cost in AED per annum 15,000 per desk (upto 6 months) 32,000 - 35,000 (upto 6 months) 200 sq.ft 200 per sq.ft onwards Cost in AED per annum 50,000 - 100,000 300,000 100,000 15,000 7,500 • These figures are indicative and subject to change. DUBAI INTERNATIONAL ACADEMIC CITY (DIAC) - Tecom Dubai Knowledge Village (DKV) announced the launch of Dubai International Academic City (DIAC), the World’s only Free Zone dedicated to international higher education. Located in Dubai Academic City, DIAC will serve as the regional base for premier international higher education institutions. Spread across an area of 25 million square feet, the DIAC campus provides an intellectually inspiring environment for students and faculty. Dubai Academic City already houses seven universities. DIAC will only house international universities separating them from other public colleges and institutions in the area. The project is expected to be completed in the next five to seven years according to business projections and will have very stringent selection criteria for approving licenses of colleges. This thriving knowledge community was founded as part of a long-term economic strategy to develop the region’s talent pool, to accelerate its move into a knowledge PKF - Free Zones in the UAE - Free Zones in Dubai 35
  42. 42. economy. Benefits for DIAC investors include 100% foreign ownership, 100% tax free, 100% repatriation of profits. There are currently many international universities of higher learning from diverse regions including Australia, India, Pakistan, Iran, Russia, Belgium, UK and Ireland operating out of DIAC, however the authority expects to further house 25 international universities to cater to more than 30,000 students in the future. These institutions offer programs that range in duration from one year to four years. Major academic programs on offer include engineering, computer science, fashion and design, biotechnology, environmental studies, quality management and business management programs. The selection of international universities depends on a number of criteria including university ranking, strength and programmes that correspond to the UAE’s industry needs. DIAC will be spread across an area of 25 million square feet. There will be areas dedicated to the international education zone, research and development centres, sports facilities, student unions and student and faculty accommodations. However currently there is no mandate for the international universities based in DKV to move to the DIAC. The set-up in DKV is not as appropriate for the universities that need to expand as DKV will focus more on house training and human resources companies. At DIAC universities have the option of either building their own campus or moving into the ready-made buildings . Features • Government support services. • Wellness centres, dining facilities and entertainment venues including movie theatres, gaming centres etc. • Student Accommodation • Sports centres • Multimedia library and other common facilities. • Type of company activities include Universities, colleges, sports facility management, library management, accommodation service provider, academic support services, etc. 36 PKF - Free Zones in the UAE - Free Zones in Dubai
  43. 43. Form of registration As a branch of a foreign company - no minimum capital required. As a branch of a UAE company - no minimum capital required. As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital varies and depends on the authorities after review of the business plan. . Facility costs and type of licenses Facility Size Cost in AED per annum Offices 18,000 - 20,000 sq.ft 145 - 180 per sq.ft Land 250,000 sq.ft onwards 20 - 30 per sq.ft Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License University segment Branch University segment Cost in AED per annum 50,000 - 100,000 15,000 - 100,000 • These figures are indicative and subject to change. DUBAI OUTSOURCE ZONE (DOZ) - Tecom Dubai Outsource Zone is the World’s first Free Zone dedicated to the outsourcing industry. Dubai Outsource Zone (DOZ) provides a comprehensive infrastructure and environment for outsourcing companies to set up global or regional hubs servicing the worldwide market. DOZ is yet another initiative of Dubai Technology and Media Free Zone. Dubai Outsource Zone is an initiative of Dubai Internet City, the state-of-the-art global hub within Dubai. It is the perfect base for companies that provide mid- to high-end IT and business processes outsourcing (BPO) services. Some of the key sectors covered are finance, accounting, IT, payroll processing, graphic design, engineering, biotech, R&D and design. It also serves as a centre for disaster recovery facilities for call centres located offshore elsewhere in the world. The Zone caters to offshore requirements from Europe, USA, the Middle East, Asia and Africa. PKF - Free Zones in the UAE - Free Zones in Dubai 37
  44. 44. DOZ provides a custom made infrastructure to enable outsourcing companies to set up efficient operations as well as support their development. The package of telecom services include reliable and redundant high-bandwidth connectivity, IP telephony,  automatic call distribution (ACD), interactive voice response (IVR) and predictive dialing systems, satellite communication services as well as technical and infrastructure support. These facilities form part of a plug-and-play infrastructure which helps offshore service providers start operations quickly with minimal upfront investment. Features • 100 percent exemption from taxes • 100 percent repatriation of capital and profits • Host of support Services to eliminate problems faced by outsourcing companies and to reduce operational hassles for outsourcing service providers. They include Speedy Incorporation and Trade Licensing, Hospitality Services and Event Management Services, etc. • Facilities to plug-and-play infrastructure which helps offshore service providers to start operations with minimal upfront investment. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital AED 300,000. Facility costs and type of license Facility Size Offices Varies 1,500 sq.ft Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License General Segments Cost in AED per annum 160 - 200 per sq.ft Cost in AED per annum 15,000 • These figures are indicative and subject to change. 38 PKF - Free Zones in the UAE - Free Zones in Dubai
  45. 45. ENERGY AND ENVIRONMENT PARK (Enpark) - Tecom Energy and Environment Park (Enpark) is an initiative of Dubai Technology and Media Free Zone. Enpark is a Free Zone spanning over 8 million square feet of office, research centre, residential, educational and leisure facilities located next to the Dubai Police School, United Arab Emirates. Phase I of the ENPARK project is set to be completed by 2010. Enpark is a special destination for clean energy and environmental technology companies to operate and a fully-integrated knowledge community that includes programs, services, partnerships and amenities to support the success of environment companies and their employees. Combining the unique assets of being at the heart of the international hub for the Region with the exclusive experience of a sustainable community, ENPARK’s ambition is to offer a world class sustainable lifestyle and build a sustainable culture. The park proposes to create a comprehensive eco-friendly community while ensuring a high level of welfare and quality of living for residents and workers. ENPARK will work with leading energy and environment companies to ensure best practices and policies are implemented in every element in the design and construction of the park. ENPARK will have renewable and efficient water utilities, as well as clean and efficient transportation facilities as part of its infrastructure. Intelligent building systems, including energy management control, renewable energy production monitoring, fire alarm monitoring and security systems, will be a feature of the park. The park also emphasizes on Clean vehicle technologies (retrofit/showcases), circulation within the zone will be dedicated to green cars certification standards, fully pedestrian friendly area renewable and efficient utilities: water conservation and reclamation, gas/hydrogen infrastructure. Efficient power, water and cooling infrastructure augmented by renewable energy as well as advanced waste processing and recycling. Fully Green Buildings park featuring state-of-the-art telecommunication infrastructure for this self-contained and self-sustaining community. PKF - Free Zones in the UAE - Free Zones in Dubai 39
  46. 46. Features • 100% tax free • 100% foreign ownership • No corporate tax • No income tax for 50 years • No custom duty • Full currency convertibility • Hassle-free company laws and legal framework Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital is AED 300,000. Facility costs and type of license Facility Size Land Varies Executive Office Varies Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Varies Cost in AED per annum Varies Varies Cost in AED per annum 15,000 • These figures are indicative and subject to change. DUBAI BIOTECHNOLOGY AND RESEARCH PARK (DuBiotech) - Tecom DuBiotech would be the World’s first Free Zone dedicated to the biotechnology industry and is a part of Dubai Technology and Media Free Zone. DuBiotech will create a comprehensive infrastructure and environment to develop biotechnology in the region. 40 PKF - Free Zones in the UAE - Free Zones in Dubai
  47. 47. The park will be built in several phases on a 300 hectare area located close to the Dubailand project. This zone aims at serving knowledge that benefits both the society and the economy and would be an ideal platform for the regional and international scientific community to interact closely. Construction of DuBiotech’s main infrastructure is underway and the first phase was completed in 2007. The DuBiotech Laboratory Complex will be completed by the end of 2008 and DuBiotech’s Headquarters will be completed by mid 2009. Discoveries and inventions can be patented through the Industrial Property Directorate (the UAE equivalent of the Patent Office), at the Ministry of Finance and Industry. The applications are then examined and following approval, a UAE patent is granted. Innovators also have the option of applying through the GCC patent office in Saudi Arabia, which provides GCC-wide protection. Additionally, the UAE is party to the Patent Cooperation Treaty (PCT). This allows for a centralised application system where any PCT member state can designate any other PCT member state for patent filing. This is an easy and cost effective way of protecting a patent internationally. Intellectual Property (IP) rights are recognised in the UAE and therefore strict enforcement will exist for DuBiotech based companies. DuBiotech supports companies registering Intellectual Property rights and expedites processing and registering these rights. Small and medium enterprises and large biotechnology and pharmaceutical companies, R&D laboratories, biotechnology related educational and academic institutions, suppliers, manufacturing, incubators and other associated sectors are encouraged to establish operations at DuBiotech. The UAE Ministry of Health oversees the approval of medical drugs and products for use within the UAE. DuBiotech, through its MOU, regulations and close collaboration with the UAE Ministry of Health, assists DuBiotech based companies to successfully launch drugs in national and regional markets. Any drugs that are exported to the US or Europe have to be approved by the FDA and EMEA respectively. DuBiotech understands that clinical trial regulations are needed in the region and these are currently under development. Stem cell research will be conducted in a regulated environment conforming to international standards. DuBiotech will be an incubator for researchers and scientists and a centre for production, creativity and development. In order to achieve that, the authorities will ensure a suitable PKF - Free Zones in the UAE - Free Zones in Dubai 41
  48. 48. environment and the basic infrastructure that will attract the best scientists, research centers and biotechnology laboratories. BioTiqania Advanced Training Institute was founded as a spin-off initiative of Dubai Biotechnology and Research Park (DuBiotech). BioTiqania is committed to providing a high standard of innovative technical training in various scientific and industrial fields. The park will comprise two main initiatives - an industry cluster and the Foundation for Research and Innovation (FRI). As part of developing a cluster, DuBiotech seeks to attract a synergistic mix of biotechnology and pharmaceutical companies active in discovery, R&D, testing, production, storage, sales and distribution. It will also attract companies offering business support services for this industry such as legal and venture capital (VC) firms specializing in the biotech industry, educational and training institutions focused on biotech, and equipment, materials and consumables suppliers. The main license categories are Therapeutics, Diagnostics and Analysis, Agricultural, Forestry and Horticulture, Environment, Specialty supplies, Equipment, Life Science consultancy and Life Science and Biomedical Associations, etc. Features • State-of-the-art infrastructure • Special areas have been set aside for companies who wish to construct their own buildings. • Dedicated production, warehousing and distribution areas will be created. • Laboratory space. • Common facilities include a library, video-conferencing, auditorium, theatre, meeting rooms, etc • 24/7 electrical power back up • Waste management and effluent treatment including the disposal of chemical, biological and hazardous materials Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital varies depending on the authorities after review of the business plan. 42 PKF - Free Zones in the UAE - Free Zones in Dubai
  49. 49. Facility costs and type of license Facility Size Land (lease-hold only) Min 38,000 sq.ft onwards Executive Office Varies Pre-Built Units Varies Laboratory Space Varies Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Production Manufacturing Others Cost in AED per annum Varies 450/ sq.ft Varies Varies Cost in AED per annum 25,000 25,000 15,000 • These figures are indicative and subject to change. DUBAI MULTI COMMODITIES CENTRE (DMCC) The Dubai Multi Commodities Centre (DMCC) has been created as a strategic goal of the Dubai Government to establish a commodity market place in Dubai. The DMCC was launched on April 24th 2002 by a decree from the Government of Dubai. The 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. The DMCC offers ownership of business premises in addition to all other standard Free Zone services. DMCC’s facilities will include a commercial tower, refineries and manufacturing complex, with close proximity to Jebel Ali Port. Plots of land have also been allocated for the larger manufacturing units and refineries. DMCC’s activities are organised into three main areas which are Gold and Precious Metals, Diamond and Colored Stones and Commodities. PKF - Free Zones in the UAE - Free Zones in Dubai 43
  50. 50. DMCC plans to strengthen Dubai’s position as the leading regional centre for bullion business by offering improved facilities to enterprises establishing themselves under the Centre’s auspices. The infrastructure at DMCC will accommodate every facet of the business - manufacturing, trade, education, certification and technology. Alliances with other players in the trade such as finance organisations, government institutions, etc. will promote complete growth of the industry. To further boost the regional diamond trade, the official announcement was made on the Dubai Diamond Exchange (DDE), which is the first WFDB (World Federation of Diamond Bourses) affiliated bourse in the Arab World. DMCC has also entered into a joint venture between MCX (Multi Commodity Exchange of India and FTIL (Financial Technologies India Ltd) and has formed the Dubai Gold and commodities exchange (DGCX). DGCX provides advanced electronic infrastructure and an organized monitored environment. DMCC also aims bringing the best of educational institutions to Dubai, to make the latest in technology and processes available to the local and regional market. DMCC has been instrumental in implementing the Kimberely Process in the United Arab Emirates as part of its endeavor to streamline the trade with global standards and protecting the legitimate diamond industry. Features • Trading in various commodities including gold and precious metals, diamonds and colored stones and various services that compliment the main core business. • Free hold ownership of business premises • Diamond exchange • 50 years tax holiday. Form of registration • As a branch of a foreign company - no minimum capital required. • As a Free Zone Company (DMCCO) - minimum share capital is AED 200,000. 44 PKF - Free Zones in the UAE - Free Zones in Dubai
  51. 51. Facility costs and type of license Facility Size Office in commercial tower Flexible for purchase Offices in Business Avenue 22 sq.m - 110 sq.m. Registration Fee one time AED 5,010 Cost in AED per annum 1,200 - 1,800 per sq.ft 180 per sq.ft (approx) Type of License Manufacturing Cost in AED per annum 8,000 to 25,000 (depends on the units or area leased) Trading Service 15,010 15,010 • These figures are indicative and subject to change. JUMEIRAH LAKES TOWERS (JLT) Jumeirah Lakes Towers (JLT) is a dynamic waterfront community and is one of the designated areas within the Dubai Multi Commodities Centre (DMCC). The DMCC Authority (DMCCA) will be the licensing authority for businesses operating in the Jumeirah Lakes Towers. Businesses in JLT therefore, will benefit from a Free Zone status, making JLT the first mixed-use Free Zone Freehold development in Dubai. JLT have attractive residential and office towers alongside hotels, leisure and retail outlets. Out of the 79 towers, 3 towers will be developed by the Dubai Multi Commodities Centre. These are the Almas, Au and Ag Towers. The landmark Almas Tower is the natural focal point of the development, situated on an island surrounded by water in the centre of the community. The tower shall house the Dubai Diamond Exchange and Dubai Multi Commodities Centre (DMCC) member businesses in the gold, diamond, energy and commodities industries. JLT is situated adjacent to Sheikh Zayed Road, between Interchanges 5 and 6. A total of 79 towers stand tall in this prestigious project that will become one of Dubai’s most recognised addresses, where property investors have been given the opportunity to own and develop towers on a freehold basis. PKF - Free Zones in the UAE - Free Zones in Dubai 45
  52. 52. The DMCCA offers investors 100% foreign ownership of businesses established in JLT. A separate set of DMCCA operating regulations governs Core Companies in DMCC as compared to Non-Core Companies in JLT. Non-Core Companies are entities established in the JLT and licensed pursuant to the operating regulations that do not trade in commodities or other activities that are licensed through DMCC. A licensee must hold either a valid JLT office lease or be the registered owner of freehold office space within the JLT and must also hold a valid license issued by the DMCCA in order to operate in the JLT. Licensees are required to renew their licenses (and leases, if applicable) within the time frame set by the concerned DMCCA. DMCCA issues the following licenses to Non - Core companies by the nature of the activity: • Trading license: To carry out any permitted trading activity. • Service license: To carry out any permitted service activity. • Professional license: To carry out any permitted professional activity as per an existing Dubai license from the concerned authority. Companies are strictly forbidden from carrying out activities other than those appearing on their license. Companies violating this rule may be fined as per the operating regulations. Licensees in JLT cannot under any circumstances legally operate outside the designated area. In JLT the following categories will not be licensed: • Licenses to Core companies of DMCC • New licenses to “manufacture garments” • General Trading license Form of registration • As a branch of a foreign company - no minimum capital required. • As a Jumeirah Lake Tower entity (JLT) - minimum share capital is AED 300,000 Facility costs and type of license Facility Size Office Space flexible Registration Fee one time AED 10,010 Cost in AED per annum Fixed by individual developers 46 PKF - Free Zones in the UAE - Free Zones in Dubai
  53. 53. Type of License Trading/service Cost in AED per annum 20,010 • These figures are indicative and subject to change. DUBAI FLOWER CITY [DFC] Strategically located within the boundaries of Dubai International Airport, Dubai Flower Centre (DFC) is a new hub of growth for the floriculture industry in the 21st century. With the explosive growth in global trade of flowers and perishables, there is an increasing demand for innovative logistics and commercial solutions to enable the industry to reduce transit times, improve quality and grow profits. To add value to the chain, DFC will operate as a Free Zone, where international traders, logistic companies and service providers can establish operations in an “offshore” environment. More than just a logistics hub, the Dubai Flower Centre will also offer the floriculture industry a commercial base. Through the DFC Free Zone, exporters, importers and wholesalers can establish trading companies to transact business in a tax, duty and exchange-control-free environment. To support the development of trade links, DFC will also provide a range of commercial and technical services to companies shipping through, or operating within, the facility. Features • World class logistics hub. • Increased capacity and connections to and from major global trading points. • Provides cost effective, high quality point of import and distribution. • Range of innovative technology. • The world’s best cool chain management. • Resources and facilities to enable cost effective value addition. • Facilities and support to enable efficient commercial transactions. • Rapid consolidation and trans-shipment facilities. • Specialised perishables handling team. • Flower treatment facilities. • Type of company activities would include import consolidation, re-export, wholesale/ trading, grower, other value added services, technical service providers, re-packaging, bouquet making/bunching/assembling and logistics service providers. PKF - Free Zones in the UAE - Free Zones in Dubai 47
  54. 54. Form of registration • As a branch of a foreign company - no minimum capital required • As a branch of a UAE company - no minimum capital required • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000 Facility, costs and type of licenses Facility Size Office suites Varies General lease offices Varies Business center offices Per desk unit basis Warehouse Min 350 - 800 sq.mts Registration Fee - yet to be finalized Type of License Trading Service Industrial Cost in AED per annum 500 - 2,500 per sq.mt (approx) 500 - 2,000 per sq.mt (approx) Prices vary depending on usage Varies Cost in AED per annum 10,000 10,000 10,000 • These figures are indicative and subject to change. DUBAI AIRPORT FREE ZONE (DAFZ) Dubai Airport Free Zone (DAFZ) was established under Law No.2 of 1996 and its amendment No.2 of 2000. It is wholly owned by the Government of Dubai. DAFZA is the only airport-oriented Free Zone in Dubai, and it’s located within the boundary of Dubai International Airport. DAFZA is an ideal location for high-tech/IT products, luxury items, jewellery, light industry and activities related to the aviation industry. Features • Located within the boundaries of Dubai International Airport. • Fast and efficient cargo clearance services (8-24 hours). • International Freight Forwarders and Logistics companies at DAFZ. 48 PKF - Free Zones in the UAE - Free Zones in Dubai
  55. 55. • Online customer service (e-Services). • Land with easy access to airport apron. • Type of activities include manufacturing, processing, assembling, packaging, import / export, distribution, storage, services, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZC) - minimum share capital is AED 500,000. • Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. Facility cost and type of license Facility Size Land Min. 2,500 sq.m Light industrial units 350 sq.m (pre-built units) Office Min. 50 sq.m FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Industrial Trading Service Cost in AED per annum 300 per sq.m 800 per sq.m 1,800 - 2,200 per sq.m Cost in AED per annum 10,000 10,000 10,000 • These figures are indicative and subject to change. DUBAI HEALTH CARE CITY (DHCC) The Dubai Healthcare City (DHCC) is formed under Decree No. 1 of 2003. DHCC initiative is to provide the highest quality of healthcare services to medical care and wellness seekers from the region (comprised of the GCC, Indian Subcontinent, Northern Gulf, Central Asia, the Levant, North and East Africa) by creating a world-class cluster of healthcare professionals and service providers in the heart of Dubai. PKF - Free Zones in the UAE - Free Zones in Dubai 49
  56. 56. DHCC aspires to provide excellent medical care services in selected disciplines that are relevant to the health problems facing patients in the region. The ‘core’ of the healthcare cluster economy is a University Medical Complex; consisting of a University Specialty Hospital, a Post-Graduate Medical School and Nursing School, and a Life Science Research Center. The combination of these 3 components will enable Dubai to leapfrog to the forefront of regional medical practices, establishing a position of regional leadership through leading edge education and research, and thereby becoming a center of excellence in global healthcare. DHCC will be a welcoming gateway for patients coming from abroad, visiting doctors, conference participants, post-graduate interns and staff members. DHCC will cater to both the medical and the wellness clusters. The Wellness Cluster is a collection of independent businesses that are designed with the long-term health and wellness of the patient or customer in mind. The holistic approach will focus on a customer’s well being and enhancing the quality of life. Features • Low operating costs. • State-of-the-art medical facilities. • Integrated healthcare community. • Specialized first class medical care. • Holistic centers, healthcare malls and other support services. • The facilities could be leased or on free hold basis. • The types of activities allowed in DHCC are wellness centers, nutrition centers, rehabilitation centers, health resorts and spa, health farm, research centers, pharmaceutical companies, private hospital and clinics, nursing school, science specialists, university complexes, tele-health and e-enabled services, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZ LLC) - share capital varies, depending on the type of project. Clinical - minimum AED. 300,000 Non Clinical - minimum AED.100,000 Hospitals - To be advised by the authority 50 PKF - Free Zones in the UAE - Free Zones in Dubai
  57. 57. Facility costs and type of license Facility Size Offices / clinics Varies Retail Unit Varies Land Varies Registration Fee (FZ-LLC) AED 3,500 Type of License Commercial License Hospitals Professional License Cost in AED per annum 30 - 250 per sq.ft 275 - 400 per sq.ft (approx) Varies Cost in AED per annum 20,000 40,000 - 50,000 Varies • These figures are indicative and subject to change. DUBAI SILICON OASIS (DSO) Dubai Silicon Oasis is an exciting global collaborative initiative, combining decisive forces that will shape the semiconductor industry under the leadership of Dubai Airport Free Zone Authority. A combination of forces that will trigger off a paradigm shift in the worldwide semiconductor industry, to new locations, whilst establishing Dubai as a key centre of future developments in semiconductors. The Dubai Silicon Oasis is spread across 6.5 million square meters and it will be the first and only purpose-built industrial park for the semiconductor industry and is expected to represent businesses across the semiconductor value-chain. Spread across 6.5 million sq mts, DSO will provide: • Developed land for customized buildings. • Ready-built space (with power, water, telecom, datacom). Dubai Silicon Oasis will be the definitive environment for the global semiconductor industry and will provide every facility required for success in today’s fast-changing world: from incubators, to networking and outsourcing support, business link-ups, venture capital, consulting, etc. PKF - Free Zones in the UAE - Free Zones in Dubai 51
  58. 58. The most authoritative and comprehensive portal on the semiconductor industry will be managed out of DSO, which will knit together the significant players in the semiconductor industry. The portal will be configured to be an excellent marketing vehicle with the potential to create enormous business opportunities. The Dubai Silicon Incubation Centre (DSIC) at DSO will provide the facility for Broadband and Wireless Incubation for the development and commercialisation of Intellectual Property and will help create regional enterprises at the top end of the technology spectrum. Features • World-class campus, exquisite layout. • Plug-and-play facilities. • Comprehensive support facilities for IC companies. • All suppliers and service providers under one roof - cost and time savings. • Mutually - supporting community - joint projects, shared facilities. • Type of company activities would include CAD/CAE companies, design companies, packaging companies, testing companies, etc. Form of registration • As a branch of foreign company. • As a branch of a UAE company. • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000 Facility costs and type of license Facility Size Office Min 50 sq.mts Warehouse Min 366 sq.mts Land Min 5,000 sq.mts FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Cost in AED per annum 2,300 per sq.mt 600 per sq.mts 150 - 250 sq.mts approx Type of License Cost in AED per annum Manufacturing 15,000 52 PKF - Free Zones in the UAE - Free Zones in Dubai Trading 15,000
  59. 59. Office Min 50 sq.mts Warehouse Min 366 sq.mts Land Min 5,000 sq.mts FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Manufacturing Trading Service 2,300 per sq.mt 600 per sq.mts 150 - 250 sq.mts approx Cost in AED per annum 15,000 15,000 15,000 • These figures are indicative and subject to change. DUBAI INTERNATIONAL FINANCIAL CENTRE ( DIFC) The DIFC is the world’s newest international financial centre. The DIFC was initiated by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. He had the original vision to create an international financial centre in Dubai. The DIFC is expected to make a strong contribution to the GDP growth of Dubai, as well as that of the United Arab Emirates and the region as a whole. The DIFC is an “onshore” financial centre, offering a platform of choice for leading financial institutions and service providers looking to do business in the region. It has been established as part of the goal to position Dubai as a recognised hub for institutional finance, and as the regional gateway for capital and investment. It aims to play a pivotal role in meeting the growing financial needs and requirements of the region, while strengthening links between the financial markets of Europe, the Far East and the Americas. With the recent economic development, rapid expansion of trade, population growth and the vast infrastructure projects currently underway, there is a growing requirement for a financial centre to serve the rapidly expanding needs of institutions and governments in this region. The DIFC is a Federal Financial Free Zone attached to the Government of Dubai, established in accordance with United Arab Emirates Federal Law and by Dubai Law. The President of DIFC is His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai. The DIFC concept has evolved as a means of: • Providing depth to the regional financial markets by broadening the range of traditional methods of financing currently provided by regional banks. PKF - Free Zones in the UAE - Free Zones in Dubai 53
  60. 60. • Attracting liquidity back into investment opportunities within the region, thereby contributing to its economic growth. • Facilitating planned privatisations in the region and enabling initial public offerings of privately owned companies, thus providing impetus to the programme of deregulation and market liberalisation throughout the region. • Contributing to the development of regional stock markets which, in turn, will contribute towards broadening the capital and ownership base of private sector companies; and, promoting the growth of Islamic finance and the development of the region’s reinsurance sector. NASDAQ DUBAI (Formerly known as The Dubai International Financial Exchange Limited {DIFX}), a subsidiary of the DIFC Authority, is expected to play a major role in the development of regional capital markets by attracting key regional companies to list their shares and other issued securities on the exchange. This, in turn, is expected to attract international investors and encourage additional portfolio flows to the region, thereby accelerating the process of the region’s integration with world markets. The DIFC has three independent bodies overlooking its operations, which enable it to function as a self contained financial service center and each body is assigned independent functions. These are DIFC Judicial Authority (DIFC Courts), DIFC Authority [with its subsidiary DIFC Investments and NASDAQ DUBAI and Dubai Financial Services Authority (DFSA)]. Legal Restrictions on Authorized Firms in DIFC • DIFC entities may not offer any products or services to the retail market • Insurance activities in the UAE are restricted to re-insurance • UAE federal laws regarding the Criminalisation of Money Laundering apply, while federal civil and commercial laws do not apply. • DIFC entities may not take deposits, deal and offer any products or services in UAE dirham • All DIFC licensed entities must be resident in the DIFC. If no space is available in DIFC, the entity may apply to be resident in Dubai until such time space is available. While the DFSA permits a wide range of financial services to be carried out from within the DIFC, some restrictions apply. Authorised Firms are not permitted to undertake the following activities: 54 PKF - Free Zones in the UAE - Free Zones in Dubai
  61. 61. • Dealing with an individual client with less than US$ 1 million in liquid assets • Dealing with an institutional client with share capital or net assets less than US$5 million • Accepting deposits from the United Arab Emirates market • Conducting insurance business with individuals • Providing money services unless it is connected with another financial service for which the firm is authorized Features • Internationally accepted laws and regulatory processes. • A world-class, independent, regulatory agency working alongside other financial regulatory agencies located in major global jurisdictions. • A wholly transparent operating environment, complying with global best practices. • A dollar denominated environment. • An international stock exchange with primary and secondary listings of debt and equity instruments. • A variety of legal vehicles that may be established with capital structuring flexibility. • The DIFC focuses on several sectors of financial activity like the Banking Services (Investment Banking, Corporate Banking and Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Re-insurance; Islamic Finance; Business Processing Operations and Ancillary Services. Forms of registration • Company with Limited Liability: - Companies with limited liability are incorporated under Law No. 2 of 2004 – Companies Law. • Limited Liability Partnership:- Limited Liability Partnerships are formed under Law No. 5 of 2004 – Limited Liability Partnership Law. By signing and filing with the Registrar an application for incorporation, any two or more persons may apply for the incorporation of a Limited Liability Partnership, in accordance with the terms of the Limited Liability Partnership Agreement. • General Partnership: General Partnerships are formed under Law No. 11 of 2004 – General Partnership Law. Under the General Partnership Law, all partners are jointly, and severally liable without limit, for the debts and obligations of the partnership. PKF - Free Zones in the UAE - Free Zones in Dubai 55
  62. 62. • Branch of a Foreign Entity: Branches of foreign companies, limited liability partnerships, and general partnerships may be established within the DIFC as recognised entities. Entities can be set up in the DIFC either as: • Authorised firms • Authorised market institutions • Ancillary service providers Facility costs and type of license Facility Offices Type of License Varies Size Varies Cost in AED per annum Varies Cost in AED per annum Varies INTERNATIONAL HUMANITARIAN CITY (IHC) International Humanitarian City (IHC) is a global humanitarian and aid hub, given a Free Zone status in Dubai. IHC is an independent Free Zone created by the Government of Dubai and chaired by HRH Princess Haya Bint Al Hussein, Wife of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, Ruler of Dubai. IHC consolidates Dubai as an essential link in the humanitarian value chain. International Humanitarian City (IHC) which aims to facilitate aid and development efforts by providing local and international humanitarian entities with facilities and services specifically designed to meet their needs. More than 55 organisations and commercial companies are currently registered with IHC. IHC is a non-religious, nonpolitical and non-profit organisation. IHC brings together United Nations agencies, local and international aid and development organisations, commercial companies and other stakeholders in a secure environment that fosters partnerships, social responsibility and global change. Currently IHC is located in central Dubai near Business Bay, however IHC will be expanding to meet the rapidly growing requirements of the global humanitarian 56 PKF - Free Zones in the UAE - Free Zones in Dubai
  63. 63. community and relocating to new facilities which will be developed on land allocated by the Government of Dubai in Dubai World Central (near to new upcoming Jebel Ali international airport). Those interested in establishing any organisation / company within IHC and wish to receive more information about the offering and registration procedures, should complete the “Expression Of Interest Form”. Upon receipt of this Expression of Interest Form, a member of the IHC team will contact the potential client you want to meet and schedule a meeting to discuss your specific needs and what IHC has to offer. Features • Strategic location. • Logistics Hub • World class infrastructure. • Ability to assimilate relief aid suppliers. • Organisations and donors within an integrated city. • Cost Effective procurement options • Easy access to the port and the international airport. • Type of organisations in IHC would include United Nations agencies, local and international aid and development organisations, well established NGO’s, commercial companies relief agencies, donors and complimentary business, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Subsidiary - minimum share capital varies . • As a New Company - minimum share capital varies . Facility costs and type of licenses Facility Size Office suites Varies Business center offices Varies Warehouse Varies Registration Fee - yet to be finalized Cost in AED per annum Varies Prices vary depending on usage Varies PKF - Free Zones in the UAE - Free Zones in Dubai 57
  64. 64. Type of License Trading Service Industrial Cost in AED per annum Varies Varies Varies DUBAI LOGISTICS CITY (DLC) Dubai Logistics City (DLC) is a integrated logistics platform, with all transport modes, logistics and value added services, including manufacturing and light assembly. DLC is part of Dubai World Central (DWC), which is a massive, multi-phase development centred around the world’s largest international airport; the Jebel Ali International Airport. DWC is the world’s first truly integrated logistics platform, with all transport modes, logistics and value added services, including manufacturing and assembly, in a single bonded and Free Zone environment. Hence DLC Free Zone is adjacent to the upcoming Jebel Ali International Airport and adjacent to the Jebel Ali Port and Free Zone. DLC can be used as • A global supply chain hub for sea-air or air-air transport combinations • A global hub for value adding logistics operations such as merge-in-transit, customisation, postponement, packaging and labelling, final assembly • A distribution hub for the greater region while reducing the number of required warehouses and improving customer service • A platform to re-gain control of the distribution channel, e.g. by the introduction of direct sales DLC provides this Free Zone platform exclusively for logistics businesses to ensure the logistics community can optimally collaborate and will find sufficient space to expand in the future. With the exception of applications for the DLC Office Park, Free Zone and operations licenses will only be issued to companies closely related to logistics business, e.g. forwarders engaged in multi-modal cargo handling logistics service providers offering warehousing and value added services in a multi-client environment and with multi-modal transport needs contract logistics service providers with dedicated 58 PKF - Free Zones in the UAE - Free Zones in Dubai
  65. 65. or custom designed facilities for distribution and value added services industry and trading companies which self-operate their distribution centers, final assembly and other value adding activities as part of their down-stream order fulfilment processes companies supporting the logistics community. Features Air cargo terminals: Directly at the apron and designed for air cargo terminal handling service providers who want to address their individual market of airlines. Land plots for industry or contract logistics: With most flexible plot layouts to support dedicated industry or contract logistics facilities and larger multi-client warehousing operations. Land plots for forwarders: Exclusively for forwarders with access to the airport’s apron and optimal for mid-sized and larger forwarding businesses who want to combine shipment handling and consolidation operations and warehousing/distributions services. Shared forwarders warehouses: Near the air cargo terminals and optimal for small and medium sized cargo handling operations. Integrator facilities: a dedicated section for integrator facilities directly at the apron provides amenities facilities throughout the premises. All logistics services and transport modes are integrated into a single customs bonded and a Free Zone environment and allow companies to focus on the optimisation of their supply chains. Form of registration As a branch of a foreign / UAE company. As a Dubai World Central Limited Liability Company (DWC LLC) - Minimum share capital is AED 300,000 OR capital varies depending on the business plan. Facility costs and type of license Facility Size Office Varies Warehouse Varies Land Min 10,000 sq.mts DWC LLC Registration Fee one time AED 10,000 Type of License Trading Service Cost in AED per annum Not yet finalized Not yet finalized Not yet finalized Cost in AED per annum 5,500 PKF - Free Zones in the UAE - Free Zones in Dubai 59 5,500
  66. 66. Facility Size Office Varies Warehouse Varies Land Min 10,000 sq.mts DWC LLC Registration Fee one time AED 10,000 Type of License Trading Service Cost in AED per annum Not yet finalized Not yet finalized Not yet finalized Cost in AED per annum 5,500 5,500 • These figures are indicative and subject to change. DUBAI MARITIME CITY The principle objectives of Dubai Maritime City are to introduce the World’s first purpose built maritime cluster, to develop Dubai’s ship repair industry and support Dubai’s waterfront development. DLC will provide a strategic global location for seven key industry sectors within the entire maritime business - maritime management, maritime services, maritime retail and recreation, maritime education and research, ship repair and maintenance, yacht repair and maintenance. The state-of-the-art facilities within Dubai Maritime City are comprehensive and will continue to be developed in anticipation of customer’s demands. Dubai Maritime City will be a vibrant mixed use development for the maritime industry. This mix includes industrial, commercial, residential and leisure facilities housed on a man made peninsula. As a peninsula development, Dubai Maritime City harnesses the benefits of open sea access for the industrial community, and creates a mesmerising living and working environment with breathtaking sea views in a vibrant commercial hub. The facilities in Dubai Maritime City will include office, land, workshop without yard, warehouse / LIU, ship supply stores, showrooms (including warehouse), retail outlet and academic areas, staff accommodation, etc. The state-of-the-art facilities within Dubai Maritime City are comprehensive and will continue to be developed in anticipation of customer’s demands. All the facilities will be ready in Dubai Maritime City by the end of 2012. However once a project is approved the FZ authority would give the company the permission to operate from a facility outside till such time that the facilities are ready within the Zone. Features • Industry Cluster Environment • Government support services 60 PKF - Free Zones in the UAE - Free Zones in Dubai
  67. 67. • Tap into the creative and innovative energy in the zone for new ideas • Excellent networking opportunities • Commercial, residential, educational and recreational facilities Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZC) - minimum share capital is AED 500,000. • Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. Facility cost and type of license Facility Size Land Varies Light industrial units Varies (pre-built units) Office Varies FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Industrial Trading Service Cost in AED per annum Not yet finalized Not yet finalized Not yet finalized Cost in AED per annum 5,500 5,500 5,500 • These figures are indicative and subject to change. PKF - Free Zones in the UAE - Free Zones in Dubai 61
  68. 68. 62 PKF - Free Zones in the UAE - Free Zones in Dubai
  69. 69. FREE ZONES IN SHARJAH AND THE NORTHERN EMIRATES PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 63
  70. 70. SHARJAH AIRPORT INTERNATIONAL FREE ZONE (SAIF ZONE) Sharjah Airport International Free Zone (SAIF Zone) was established by an Emiri Decree No.2 in 1995. SAIF Zone is placed on the crossroads of major trading routes between East and West. Sharjah offers excellent global, sea, land and air transport links with access to a market of over 1.4 billion consumers, covering member state of the GCC and the Arab World, Iran, CIS countries, the Asian Sub-continent and parts of Africa and the Eastern Mediterranean. Adjacent to Sharjah International Airport and just a few minutes from Sharjah City and Port Khalid, the location of SAIF Zone is enhanced by its secondary seaport facility located in the Gulf of Oman at Port Khorfakkan. Features • The only Emirate with seaports on the East and West coasts. • SAIF Zone is the world’s first ISO certified Airport Free Zone. • Access to ports in the Arabian Gulf and the Indian Ocean. • Lease period upto 25 years. • Type of company activities include manufacturing, processing, assembling, packaging, Import/export, distribution, storage, services, etc. Form of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 150,000. • Free Zone Establishment (FZE) - minimum share capital is AED 150,000. Facility costs and type of license Facility Size Land Min. 2500 sq.mts Executive Offices Min. 24 sq mts Factory/Warehouse 134 - 645 sq.mts FZE / FZCO Registration Fee AED 10,000 (one time fee) Branch Registration Fee AED 5,000 (one time fee) Cost in AED per annum 50 - 100 per sq.mts 1650 per sq.mts Varies from 63,000 - 185,000 64 PKF -License Type of Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates Cost in AED per annum Industrial 7,500 -10,000

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