Choosing the best free zone for manufacturing in the UAE starts with a number that only one zone publishes. KEZAD in Abu Dhabi lists serviced industrial plots at AED 32 to 38 per square metre a year [1]. The other nine zones on a typical shortlist quote land on application, and directory pages advertise JAFZA land and warehouse space at anywhere from about AED 80 to 484 per square metre [2], a sixfold spread that tells you none of those figures is a quote.
For a factory, land, power and tax status decide the business, and the licence fee barely registers. Manufacturing is also one of the few activities where the free zone 0% corporate tax rate is real, because Ministerial Decision No. 229 of 2025 names it as a Qualifying Activity [3]. Pick a zone whose licence does not cover your process, whose VAT status you assumed, or whose plots are too small, and you pay for a second setup.
Since 2013, BusinessDubai.ae has set up industrial and trading companies across the UAE free zones. This guide compares ten of them on land, power, licence scope, Designated Zone status and the 0% tax test: JAFZA, Dubai Industrial City, Dubai South, KEZAD, Hamriyah Free Zone, SAIF Zone, RAKEZ, Ajman Free Zone, Fujairah Free Zone and UAQ Free Trade Zone.
Which UAE free zones are best for manufacturing in 2026?
The best UAE free zone for manufacturing depends on how your goods move and how heavy your process is. JAFZA and Hamriyah suit heavy or bulk export by sea, KEZAD suits large plots at a published land price, SAIF Zone and Dubai South suit light goods by air, and Ajman Free Zone suits budget light assembly.
Eight of the ten appear on the VAT Designated Zone list, KEZAD and RAKEZ for named areas only. Dubai Industrial City does not appear, and Dubai South's answer turns on a naming question covered below [4][5]. All ten offer a manufacturer the same federal 0% corporate tax route, because manufacturing carries no Designated Zone condition [3].
The table below is the shortlist in one view: where each zone sits, what the list says, and what the zone actually publishes.
| Zone | Emirate | Port or airport | Designated Zone | What the zone publishes | Best suited to |
|---|---|---|---|---|---|
| JAFZA | Dubai | Jebel Ali Port | Yes, North-South [4] | Licences from AED 5,000; Gateway warehouses of 325 to 2,475 m² [6] | Heavy or bulk export by sea |
| Dubai Industrial City | Dubai | Near Jebel Ali and Al Maktoum International | Not on the list [5] | Plots with up to 4 MW of power access [7] | A Dubai address for power-hungry plants |
| Dubai South | Dubai | Al Maktoum International Airport | The list names Dubai Aviation City, not Dubai South [5] | Light-manufacturing licence scope; warehouses from 500 m² [8] | Light, high-value goods by air |
| KEZAD | Abu Dhabi | Khalifa Port | Khalifa Industrial Zone and Khalifa Port free trade zone are listed; confirm your plot [4] | A land tariff: AED 32 to 38 per m² for serviced industrial plots [1] | Large plots at a known price |
| Hamriyah Free Zone | Sharjah | Own deep-water port | Yes [4] | Basic licence AED 11,000; plots from 2,500 m² [9] | Heavy industry, petrochemicals, oil and gas |
| SAIF Zone | Sharjah | Sharjah International Airport | Yes, as Sharjah Airport International Free Zone [4] | Warehouses from 125 m²; plots from 2,500 m² [10] | Light manufacturing and air freight |
| RAKEZ | Ras Al Khaimah | Saqr Port | Al Ghail, Al Hamra and Al Hulaila industrial zones [5] | No land rate; its utility publishes power at 40 fils per kWh plus surcharge [11] | Cost-led medium and heavy industry |
| Ajman Free Zone | Ajman | Ajman Port | Yes [4] | Land from 1,000 m²; warehouses from 100 m² [12] | Budget light assembly |
| Fujairah Free Zone | Fujairah | Port of Fujairah, Gulf of Oman | Yes, with FOIZ listed separately [4] | Little that we could verify | Export through the Gulf of Oman |
| UAQ Free Trade Zone | Umm Al Quwain | Ahmed Bin Rashid Port | Yes, two listed entities [4] | Plots from 2,500 m² on 25-year renewable leases [13] | Budget light industry that needs land |
Read the Designated Zone column first, then check your process against each zone's licence scope further down, before you compare a single price. The trading version of this comparison is our best free zones for trading guide; the answers differ for a factory because of how raw materials, power and consumer sales are treated.
Does a free zone manufacturer really pay 0% corporate tax?
A free zone manufacturer can genuinely pay 0% corporate tax, because Ministerial Decision No. 229 of 2025 lists manufacturing and processing of goods or materials as Qualifying Activities at Article 2(1)(a) and (b). Business-to-business sales, including to mainland companies, can qualify. Sales to individual consumers never do, and they count against a 5% or AED 5,000,000 cap.
Service founders are sold the free zone rate and then find their activity is not on the list. Manufacturers are the exception. Article 2(3) of the decision defines both activities, and the wording matters [3]:
- Manufacturing of goods or materials includes "the production, improvement or assembly of products and materials from raw materials or components."
- Processing of goods or materials includes "the preparation, treatment, transformation or conversion of goods or materials into another form of good or material for commercial or industrial use or sale."
Assembly is named expressly, so a light assembly line sits inside the definition, not only heavy production.
The mainland question is where most guides go wrong. Under Article 3 of Cabinet Decision No. 100 of 2023, income from transactions with a non-free zone person is Qualifying Income "only in respect of Qualifying Activities that are not Excluded Activities" [14]. Manufacturing is a Qualifying Activity, so a free zone factory selling components to a mainland assembler, a Dubai contractor or an Abu Dhabi distributor can earn qualifying income on those sales.
The limit is Article 2(2)(a) of the ministerial decision, which makes "any transactions with natural persons" an Excluded Activity. It waives that only for ships, fund management, wealth and investment management, and aircraft financing and leasing [3]. Manufacturing is not on the waiver list, so a sale to an individual consumer is never qualifying, whichever zone you are in.
| Who buys from your free zone factory | Qualifying income? | Rule |
|---|---|---|
| A free zone company that is the beneficial recipient | Yes | Cabinet Decision No. 100 of 2023, Article 3(1)(a) [14] |
| A mainland company | Yes, for manufacturing or processing income | Article 3(1)(b) [14] |
| An overseas business buyer | Yes, on the same rule as a mainland buyer | Article 3(1)(b) [14] |
| An individual consumer, in the UAE or abroad | No, never | MD 229 of 2025, Article 2(2)(a) [3] |
| Your own mainland branch or place of business | Taxable as a Domestic Permanent Establishment | Article 5 [14] |
Three conditions sit around the rate. Non-qualifying revenue must stay within the lower of 5% of total revenue or AED 5,000,000 in a tax period, and a breach costs Qualifying Free Zone Person status from the start of that period and for the four that follow [3]. The company must also prepare audited financial statements, as our statutory audit guide explains. And under Article 8 of Cabinet Decision No. 100 of 2023, core income-generating activities must be undertaken in a Free Zone or a Designated Zone, with adequate assets, qualified full-time employees and operating expenditure there [14]. For a factory, that means the production line sits in the zone.
Manufacturing and processing carry no Designated Zone condition. Distribution at Article 2(1)(l) only qualifies "in or from a Designated Zone" [3], which is why traders study the list so closely. A manufacturer in Dubai Industrial City, which is not on it, has the same 0% route as one in JAFZA. A Qualifying Free Zone Person does give up the AED 375,000 nil-rate band and Small Business Relief [15][16], and our Qualifying Free Zone Person guide sets out every condition.
Common Mistake: Adding a direct-to-consumer web shop to a qualifying factory entity. Every dirham of consumer revenue is non-qualifying, and at AED 20,000,000 of revenue the cap is AED 1,000,000, because the 5% limb is lower. Cross it and the whole company loses the 0% rate for that year and the next four [3]. Put the consumer channel in a separate mainland company from day one.
Real Talk: If your plant will turn over less than AED 3,000,000 in its first years, Small Business Relief may be worth more than Qualifying Free Zone Person status. It applies to tax periods ending on or before 31 December 2029, does not depend on who your customers are, and at that size brings no corporate tax audit requirement [16]. A Qualifying Free Zone Person must be audited at any revenue.
Model your tax position before you pick a zone→
Which manufacturing free zones are VAT Designated Zones?
Eight of the ten manufacturing zones appear on the VAT Designated Zone list created by Cabinet Decision No. 59 of 2017: JAFZA, Hamriyah, SAIF Zone, Ajman Free Zone, Fujairah Free Zone and UAQ Free Trade Zone by name, and KEZAD and RAKEZ for named areas only. Dubai Industrial City is absent, and Dubai South is not named.
The annex to Cabinet Decision No. 59 of 2017 named 20 areas across seven emirates from 1 January 2018 [4]. The Cabinet has amended it several times since, and the Federal Tax Authority's consolidated list reflects changes up to Cabinet Decision No. 81 of 2021 [5]. Status attaches to geography, not to the licence: an industrial licence does not make a plot designated.
| Zone | How the list names it | Effective | Status for your plot |
|---|---|---|---|
| JAFZA | Jebel Ali Free Zone (North-South) | 1 January 2018 [4] | Designated |
| Dubai Industrial City | Not listed | Absent from the 2017 annex and the FTA's amended list [5] | Not designated |
| Dubai South | Not listed by that name; the list names "Dubai Aviation City" | 1 January 2018 for Dubai Aviation City [5] | Get the zone to confirm in writing whether your plot is inside the designated area |
| KEZAD | Khalifa Industrial Zone; Free Trade Zone of Khalifa Port | 1 January 2018 [4] | Confirm the specific plot in writing |
| Hamriyah Free Zone | Hamriyah Free Zone | 1 January 2018 [4] | Designated |
| SAIF Zone | Sharjah Airport International Free Zone | 1 January 2018 [4] | Designated |
| RAKEZ | RAK Free Trade Zone in the 2017 annex; Al Hamra, Al Ghail and Al Hulaila Industrial Zones added later | Industrial zones from 4 July 2019, the date RAK Airport Free Zone came off the list [5] | Designated in the three industrial zones, not the business zones |
| Ajman Free Zone | Ajman Free Zone | 1 January 2018 [4] | Designated |
| Fujairah Free Zone | Fujairah Free Zone; FOIZ (Fujairah Oil Industry Zone) listed separately | 1 January 2018 [4] | Designated |
| UAQ Free Trade Zone | Two entries: Ahmed Bin Rashid Port, and Sheikh Mohammed Bin Zayed Road | 1 January 2018 [4] | Designated |
Two rows need care. For KEZAD, the annex names Khalifa Industrial Zone and the Free Trade Zone of Khalifa Port [4], while KEZAD's own land tariff prices "Domestic & Freezone" plots side by side [1], so confirm a specific KEZAD plot's status in writing before you sign. For Dubai South, the list names "Dubai Aviation City", not Dubai South [5]; ask the zone to confirm in writing whether your plot falls inside the designated area.
Common Mistake: Accepting "we are a designated zone" from a sales team. Some zones use the phrase loosely, and a zone that runs both free zone and domestic land can be telling the truth about one plot and not yours. The only test is the Cabinet Decision No. 59 of 2017 annex as amended [4]. Ask for the annex entry by name and the plot it covers, in writing, before you sign a 25-year lease.
Our Designated Zone VAT guide works through the whole list and the conditions a zone must keep meeting to stay on it.
Why does Designated Zone status matter more to a factory than to a trader?
Designated Zone status matters more to a factory because Article 51 of Cabinet Decision No. 52 of 2017 keeps raw materials outside the scope of VAT when they are incorporated into another good made in the same zone. A trader benefits on stock it resells; a manufacturer benefits on every input that ends up inside a product.
Article 51 treats a Designated Zone as outside the UAE for VAT only while it stays fenced, security-controlled and under customs supervision, and a company established there is still resident in the UAE for VAT [17]. Inside that frame, the rules split cleanly for a manufacturer.
| What happens in or from the zone | VAT treatment | What it means for a factory |
|---|---|---|
| Raw materials incorporated into a product made in the same zone, where that product is not itself consumed | Outside the scope [17] | Steel, resin, fabric or components entering the line are not taxed as consumption |
| Goods used up in the zone, such as cleaning materials or canteen supplies | Inside the State, 5% [17] | Consumables are not inputs, and they carry VAT |
| Goods moved to another Designated Zone under customs suspension, not released, used or altered on the way | Outside the scope [17] | Finished stock can move to a port-side zone without VAT |
| Water and energy supplied in the zone | Inside the State, 5% [17] | Your electricity and water bills carry VAT |
| Services supplied in the zone, such as maintenance, security or engineering | Inside the State, 5% [17] | Designated status never helps services |
| Finished goods released to a mainland customer | A taxable import at 5% [17][18] | The importer of record accounts for the VAT |
| Finished goods shipped outside the UAE | Outside the scope [18] | Export sales carry no UAE VAT |
The incorporation rule is the part a trader never uses. A distributor's goods are resold, not consumed. A factory's raw materials are transformed inside the zone, which would ordinarily look like consumption, and the incorporation clause is what keeps them out [17].
Real Talk: For a VAT-registered manufacturer, most of this is cash flow rather than cost, because input VAT on materials is normally recoverable anyway. It bites for the company not yet registered, the one with a long cash cycle, and the one that assumed the zone made its power bill VAT-free. It does not: water and energy are supplied inside the State even in a Designated Zone [17].
Customs duty exemption on imported machinery and raw materials is a separate federal mechanism that runs through MoIAT registration, not through Designated Zone status. Our manufacturing company setup guide covers it, with the federal industrial licence and In-Country Value.
What does industrial land actually cost in a UAE free zone?
Industrial land in a UAE free zone costs AED 32 to 38 per square metre a year for a serviced industrial plot at KEZAD, plus an AED 3 per square metre maintenance levy, according to KEZAD's 2026 tariff. KEZAD is the only one of the ten zones that publishes a land rate; the rest quote on application.
KEZAD's land lease tariff page, last modified on 5 June 2026, lists five plot categories [1].
| KEZAD land category | AED per m² per year | Notes |
|---|---|---|
| Serviced industrial plots, Abu Dhabi (domestic and free zone) | 32 to 38 | The core factory product |
| Serviced logistics plots, Abu Dhabi (domestic and free zone) | 36 to 45 | Warehousing and distribution land |
| Temporary industrial plots (domestic zone) | 15 to 20 | Domestic zone, not free zone |
| Serviced industrial plots, KEZAD Al Ain | 15 to 20 | Inland, about half the Abu Dhabi rate |
| Temporary laydown area | 10 to 12 | Storage and staging |
| Common Area Maintenance levy | 3 | On top of every category, adjusted annually |
Two more lines sit on top: annual escalation under the lease terms, and a "further premium levy" on strategic land allocations [1]. The domestic and free zone split in the first two rows is the reason to confirm Designated Zone status plot by plot.
Every other zone on this list prices land privately. Hamriyah, SAIF Zone, Ajman Free Zone and UAQ Free Trade Zone publish plot sizes and lease terms but no rate [9][10][12][13]. Directory pages fill the gap with numbers that disagree with each other: advertised figures for JAFZA land and warehouse space alone run from about AED 80 to 484 per square metre [2]. That spread is the point. Treat any per-metre figure you did not get in writing from the zone as a guess.
Quick Math: A 10,000 square metre serviced industrial plot at KEZAD costs AED 320,000 to 380,000 a year in land, plus AED 30,000 in the maintenance levy, so AED 350,000 to 410,000 before escalation [1]. Halve the plot to 5,000 square metres and it is AED 175,000 to 205,000. Move the same 10,000 square metres to KEZAD Al Ain at AED 15 to 20 and the land line falls to AED 180,000 to 230,000 including the levy.
Pro Tip: Ask every zone for the same five lines in writing: the rate per square metre, the escalation clause, any service or maintenance levy, the lease term and how many years are fixed, and the plot's Designated Zone status by annex name. Hamriyah and UAQ Free Trade Zone both fix the rate for the first five years of a 25-year lease [9][13], so compare what happens in year six, not the year-one rent.
What plot and warehouse sizes does each zone offer?
Published plot floors run from 1,000 square metres at Ajman Free Zone to 2,500 square metres at Hamriyah, SAIF Zone and UAQ Free Trade Zone, with Hamriyah's sea-access maritime plots starting at 5,000 square metres. Pre-built units start at 100 square metres in Ajman, 125 at SAIF Zone and 325 at JAFZA.
The sizes tell you who each zone is built for, and the lease terms tell you how long you are committing.
| Zone | Smallest plot stated | Pre-built units stated | Lease terms stated |
|---|---|---|---|
| Hamriyah Free Zone | 2,500 m² general; 5,000 m² sea-access maritime [9] | 200, 276, 400 and 600 m² [9] | 25 years, first five years fixed |
| SAIF Zone | 2,500 m² [10] | 125, 250, 400 and 600 m², combinable [10] | Not published |
| UAQ Free Trade Zone | 2,500 m², serviced with power and water [13] | Not itemised | 25 years renewable, first five years at a fixed land rate |
| Ajman Free Zone | 1,000 m² [12] | From 100 m² [12] | Rent annually in advance, or three years upfront |
| JAFZA | Not stated | Gateway units of 325 to 2,475 m² [6] | Not published |
| Dubai South | Not stated | Logistics District warehouses from 500 m² [8] | Not published |
| Dubai Industrial City | Not stated; plots marketed with power access of up to 4 MW [7] | Not itemised here | Not published |
| KEZAD | Priced per m², floor not stated [1] | Not itemised here | Annual escalation plus levy |
| RAKEZ | Not confirmed on RAKEZ's own pages | Not confirmed | Ask for a written offer |
| Fujairah Free Zone | Not verified | Not verified | Ask for a written offer |
A 100 square metre Ajman unit is an assembly bench with a loading door. A 5,000 square metre Hamriyah maritime plot is a berth-side plant. UAQ Free Trade Zone adds labour accommodation on site [13], which matters when a production shift needs housing within a short drive.
If you are between a unit and a plot, decide on power and floor loading first. A pre-built warehouse fixes both; a plot lets you specify them and then build.
What does factory power cost, and who supplies it?
Factory power in the RAKEZ, Ajman and UAQ zones costs a flat 40 fils per kWh plus a 4 fils surcharge from Etihad Water and Electricity, per its tariff page updated 22 August 2026. DEWA supplies the Dubai zones on a slabbed industrial tariff. Sharjah and Abu Dhabi rates should be confirmed with the zone in writing.
Etihad Water and Electricity lists a single slab for industrial customers, with no consumption tiers [11]. DEWA publishes its industrial tariff as consumption slabs; read the current slab rates and any surcharge on DEWA's own slab tariff page before you model a Dubai plant [19]. We do not quote Sharjah or Abu Dhabi industrial rates here, because we could not confirm them on the utilities' own pages.
| Zone | Utility | What is published for industrial power |
|---|---|---|
| RAKEZ, Ajman Free Zone, UAQ Free Trade Zone | Etihad Water and Electricity | 40 fils per kWh, single slab, plus a 4 fils surcharge [11] |
| JAFZA, Dubai Industrial City, Dubai South | DEWA | Slabbed industrial tariff on DEWA's tariff page [19] |
| Hamriyah Free Zone, SAIF Zone | SEWA | Confirm the current industrial rate in writing |
| KEZAD | Abu Dhabi distribution utility | Confirm the rate for your plot with KEZAD in writing |
| Fujairah Free Zone | Confirm with the zone | Confirm the utility and rate in writing |
Price is only half the question; capacity decides whether the plant runs. Dubai Industrial City markets plots with power access of up to 4 MW [7]. Hamriyah's standard warehouses come with loads from 20 kW to 150 kW, per its June 2025 brochure [9]. If your line needs more than a unit's rated load, you are into a plot and a new connection, not a warehouse.
Quick Math: At Etihad Water and Electricity's 40 fils plus 4 fils, every kWh costs AED 0.44 [11]. A light plant drawing 20,000 kWh a month pays about AED 8,800 a month, or AED 105,600 a year. The 5% VAT on top is inside the State even in a Designated Zone [17], though a registered manufacturer normally recovers it.
Pro Tip: None of the ten zones publishes a connection time for a new industrial supply that we could verify, and directory tables that list one cite no source. Put the contracted load and the energisation date in the lease or the zone's offer letter, with the zone's obligation if it slips. A factory with machines on site and no power is paying rent on a warehouse.
Light industrial or full industrial licence: which does each zone issue?
Dubai South's industrial licence covers light manufacturing, assembly and packaging only, while SAIF Zone, JAFZA, Ajman Free Zone and RAKEZ issue broader industrial licences covering manufacturing and processing, and Hamriyah takes heavy industry, petrochemicals and oil and gas. Match the licence to your process before you sign the lease, not after.
The difference is not a label. A light licence lists the operations you may perform, and a process outside that list is unlicensed however small it is.
| Zone | Industrial licence scope the zone states | Light or full |
|---|---|---|
| Dubai South | Light manufacturing, assembly and packaging: blending, mixing, purifying, assembling, forming, repacking and wrapping [8] | Light only |
| SAIF Zone | Raw material import, manufacturing, processing, assembly, packaging and export [10] | Full |
| JAFZA | Industrial licence needing a production facility or warehouse inside the zone, with periodic HSE audits [6] | Full, tied to the facility |
| Hamriyah Free Zone | Heavy industry, petrochemicals, oil and gas, with steel and maritime sub-zones [9] | Full, including heavy |
| Ajman Free Zone | Manufacturing facilities, raw material import, manufacture and product export [12] | Full |
| RAKEZ | Manufacturing, processing, assembly and packaging in Al Ghail, Al Hamra or Al Hulaila [20] | Full |
| Dubai Industrial City | An industrial licence among its categories [7] | Confirm per process |
| KEZAD, Fujairah Free Zone, UAQ Free Trade Zone | Confirm the scope for your process in writing | Confirm per process |
Common Mistake: Buying a light-industrial licence because the activity sounds light. Dubai South's scope lists blending, mixing, purifying, assembling, forming, repacking and wrapping [8]. A process involving casting, chemical reaction, surface coating or heat treatment may not fit that list, and if the zone decides mid fit-out that your line needs full industrial approval, you are amending the licence, redrawing the layout or moving. Send the process flow, the machine list and the chemicals list before you sign.
Our JAFZA guide covers its licence categories and HSE audit regime, and our Dubai South guide covers the Dubai Aviation City Corporation licence types in detail.
Which environmental and civil defence approvals apply in each zone?
Environmental and civil defence approvals follow the emirate. A JAFZA factory goes through Dubai Municipality and Dubai Civil Defence, Hamriyah and SAIF Zone plants go through Sharjah's EPAA and Sharjah Civil Defence, and a RAKEZ plant goes through RAK's EPDA under an agreement with RAKEZ that speeds up industrial approvals.
The table covers the four zones where we have confirmed the route. For the other six, ask the zone to name the environmental authority and the civil defence sequence in writing before you commission layout drawings.
| Zone | Environmental route | Fire and life-safety route |
|---|---|---|
| JAFZA | Dubai Municipality [24] | Dubai Civil Defence, two stages: drawing review, then inspection [24] |
| Hamriyah Free Zone | Hamriyah's own EEHS department first, then Sharjah's Environment and Protected Areas Authority (EPAA) [21] | Sharjah Civil Defence [21] |
| SAIF Zone | Sharjah's EPAA [21] | Sharjah Civil Defence [21] |
| RAKEZ | RAK's Environment Protection and Development Authority (EPDA), under an EPDA-RAKEZ agreement on industrial approvals [20] | Confirm with RAKEZ's HSE team |
| Dubai Industrial City, Dubai South, KEZAD, Ajman Free Zone, Fujairah Free Zone, UAQ Free Trade Zone | Ask the zone to name it in writing | Ask the zone to name it in writing |
Higher-risk processes (chemicals, coatings, food, metal working) draw the closest environmental scrutiny, so put them in the first conversation with the zone rather than the drawings. The full Dubai sequence, including the MoIAT inspection that follows the zone licence, is in our manufacturing company setup guide.
These approvals do not end at opening. JAFZA's industrial tenants face periodic HSE audits [6], and licence renewals, visa files and inspection follow-ups fall due every year. Our post-setup services team runs that calendar so an audit does not land on a production week.
What do JAFZA, Dubai Industrial City and Dubai South offer a manufacturer?
JAFZA offers a Designated Zone beside Jebel Ali Port with an industrial licence tied to an in-zone facility. Dubai Industrial City offers a Dubai address and plots with up to 4 MW of power, but no Designated Zone status. Dubai South offers airport-side light manufacturing at Al Maktoum International Airport.
JAFZA
JAFZA sits beside Jebel Ali Port and is listed as Jebel Ali Free Zone (North-South) [4]. Its industrial licence is tied to a production facility or warehouse inside the zone, with periodic HSE audits, and its only published price is that licences start at AED 5,000 [6]. It suits heavy or bulk exporters who want the port and Designated Zone status in one place. Our JAFZA guide goes further, and if your goods are light and fly, our DAFZA vs JAFZA comparison tests the airport alternative.
Dubai Industrial City
Dubai Industrial City is a free zone and part of TECOM Group, marketing plots with power access of up to 4 MW [7]. It is not on the Designated Zone list [5], so inputs bought in are inside the scope of VAT, but the 0% corporate tax route stays open because manufacturing carries no Designated Zone condition [3]. It suits a power-hungry plant that wants a Dubai address and sells B2B, where recoverable input VAT is cash flow rather than cost.
Dubai South
Dubai South is built around Al Maktoum International Airport, with Logistics District warehouses from 500 square metres and a light-only industrial licence [8]. Dubai Aviation City Corporation's tariff lists a new one-year licence at AED 10,000, with no facility or visas in it [8]. On VAT, get the zone's written confirmation for your plot, since the list names Dubai Aviation City rather than Dubai South [5]. It suits light, high-value goods that move by air.
What do KEZAD, Hamriyah and SAIF Zone offer a manufacturer?
KEZAD offers serviced industrial plots at a published AED 32 to 38 per square metre beside Khalifa Port. Hamriyah Free Zone offers a deep-water port and sub-zones for heavy industry, petrochemicals and oil and gas. SAIF Zone offers an explicit industrial licence and small warehouses beside Sharjah International Airport.
KEZAD
KEZAD runs industrial and logistics land in Abu Dhabi, including beside Khalifa Port, and in Al Ain, and it is the only zone here with a published land tariff [1]. Because it also leases domestic-zone land at the same bands, the plot decides your Designated Zone status [4]. It suits manufacturers who need large plots at a price a bank can model, and plants supplying Abu Dhabi industrial buyers, where In-Country Value counts. Our business setup in Abu Dhabi page covers the emirate's other licensing routes if part of your operation sits outside KEZAD.
Hamriyah Free Zone
Hamriyah Free Zone is Sharjah's first listed Designated Zone [4] and runs its own deep-water port, with sub-zones including Oil and Gas, Petrochemical, Steel City and Maritime City [9]. It publishes a basic licence cost of AED 11,000 and nothing on rent [9]. It suits heavy industry and bulk export by sea on a Sharjah budget. Our Hamriyah guide sets out the sub-zones and facilities.
SAIF Zone
SAIF Zone sits beside Sharjah International Airport, is listed as Sharjah Airport International Free Zone [4], and issues an explicit industrial licence with combinable warehouses from 125 square metres [10]. It publishes no rates. It suits light manufacturing and air freight without a Dubai address. Our SAIF Zone guide compares it with Hamriyah line by line, and our business setup in Sharjah page prices both Sharjah routes against the emirate's other options.
What do RAKEZ, Ajman, UAQ and Fujairah offer a manufacturer?
RAKEZ offers three designated industrial zones with power at 40 fils per kWh plus surcharge, Ajman Free Zone offers the smallest published units from 100 square metres, UAQ Free Trade Zone offers 2,500 square metre plots on 25-year leases, and Fujairah Free Zone offers a port on the Gulf of Oman.
RAKEZ
RAKEZ runs three industrial zones, Al Ghail, Al Hamra Industrial and Al Hulaila, all on the Designated Zone list from 4 July 2019 [5]. The 2017 annex also lists the RAK Free Trade Zone, which merged into RAKEZ, so confirm in writing which RAKEZ area your plot or unit sits in before you rely on Designated Zone treatment [4]. Power is Etihad Water and Electricity's 40 fils plus 4 fils [11], and environmental approvals run through RAK's EPDA [20]. It suits cost-led medium and heavy industry with Saqr Port access. Our RAKEZ guide maps each industrial zone.
Ajman Free Zone
Ajman Free Zone sits beside Ajman Port, is a Designated Zone [4], and pairs an industrial licence with the smallest published units in this comparison: warehouses from 100 square metres and land from 1,000 [12]. It suits budget light assembly. Our Ajman Free Zone guide covers the licence categories, and our business setup in Ajman page shows what the emirate's routes cost beside it.
UAQ Free Trade Zone
UAQ Free Trade Zone appears on the list twice, at Ahmed Bin Rashid Port and on Sheikh Mohammed Bin Zayed Road [4]. Its serviced plots from 2,500 square metres come with labour accommodation on site [13], but the land page we relied on is dated January 2024, so re-confirm the terms. It suits budget light industry that needs land rather than a unit. Our Umm Al Quwain setup guide and business setup in Umm Al Quwain page cover the emirate.
Fujairah Free Zone
Fujairah Free Zone sits beside the Port of Fujairah on the Gulf of Oman, outside the Strait of Hormuz [22]. FOIZ, the Fujairah Oil Industry Zone for oil, gas and petrochemical operators, is listed separately as a Designated Zone [4]. We could not verify a plot floor, land rate or utility tariff on the zone's own site, so get every facility figure in writing. It suits manufacturers exporting east without transiting Hormuz. Our Fujairah free zone guide explains FFZA and FOIZ, and our business setup in Fujairah page covers the emirate's other routes.
Why is the licence the smallest line in a factory budget?
A free zone industrial licence is the smallest line in a factory budget. Zone-published licence fees run from AED 5,000 at JAFZA to AED 11,000 at Hamriyah, while a 10,000 square metre serviced plot at KEZAD costs AED 350,000 to 410,000 a year before a building, fit-out or a single machine.
The table puts the lines side by side. Only the land and power rows carry a published rate, and only for the zones named.
| Cost line | Amount (AED) | Notes |
|---|---|---|
| Licence fee, zone-published | 5,000 (JAFZA, "from"); 10,000 (Dubai South, one year); 11,000 (Hamriyah, basic) | Licence line only, no facility, visas or establishment card [6][8][9] |
| Licence and visa bundle, advertised | About 14,088 to 40,211 in year one | Advertised by freezonecompare.com, April 2026, across seven zones; bundles, not quotes [2] |
| Land, KEZAD serviced industrial plot, 10,000 m² | 320,000 to 380,000 a year | AED 32 to 38 per m² [1] |
| Common Area Maintenance levy, 10,000 m² | 30,000 a year | AED 3 per m², adjusted annually [1] |
| Land at any other zone | Written quote only | No other zone in this guide publishes a rate |
| Electricity, 20,000 kWh a month | About 105,600 a year | Etihad Water and Electricity rate, before 5% VAT [11] |
| Building, fit-out and machinery | Project-specific | Usually the largest lines in the budget |
| Year two | Land escalates, levy adjusts, licence renews | KEZAD states annual escalation [1] |
The package prices on our money pages are office and trading packages; they are not factory budgets, and nobody should read them as one. Machinery, building and fit-out dwarf the licence fee, and our manufacturing company setup guide works through capex, the MoIAT licence and the approval chain. Sector specifics are in our cosmetics manufacturing and water bottling guides.
Quick Math: Hamriyah's AED 11,000 basic licence is about 3% of the AED 350,000 to 410,000 a year a 10,000 square metre KEZAD plot costs in land and levy alone [1][9]. Saving AED 5,000 on the licence is worth less than a week's land rent on that plot, so choose on land, power and scope, and let the licence fall where it falls.
Real Talk: If a consultant quotes your factory as a single package price, they have priced a licence and a desk. A factory quote has at least five lines the zone sets separately: licence, land or unit rent, any service or maintenance levy, utility connection and deposits, and the building or fit-out. Ask for each on the zone's letterhead. The two lines that move in year two are escalation and levies, and KEZAD states both [1].
For an itemised quote across your shortlist, with written land, power and status confirmations, get an itemised factory quote→
Should a manufacturer choose a free zone or the mainland?
A manufacturer selling to other businesses or exporting should usually choose a free zone, because manufacturing income can qualify for 0% corporate tax there. A manufacturer selling mainly to consumers gains little, since consumer sales never qualify, and a mainland company pays 0% to AED 375,000 of taxable income and 9% above with no customer restriction.
The honest comparison is about who buys from you, not where the land is cheaper.
| Factor | Free zone factory | Mainland factory |
|---|---|---|
| Corporate tax | 0% on qualifying income as a Qualifying Free Zone Person, 9% on the rest [15] | 0% to AED 375,000, 9% above [15] |
| Selling to consumers | Always non-qualifying; capped at the lower of 5% of revenue or AED 5,000,000 [3] | No restriction |
| Selling to mainland businesses | Can qualify for manufacturing income [14] | Direct |
| VAT on raw materials | Outside the scope in a Designated Zone when incorporated [17] | Inside the scope, normally recoverable |
| Small Business Relief | Not available to a Qualifying Free Zone Person [16] | Available under AED 3,000,000 revenue to 31 December 2029 [16] |
| Audited accounts for corporate tax | Required at any revenue [3] | Required above AED 50,000,000 revenue [23] |
| A mainland place of business | Income attributable to it is taxable [14] | Not applicable |
A common working answer is both: a free zone factory selling B2B and to export, and a small mainland company for any consumer channel. That is two licences and a transfer pricing question, so it is worth it only once consumer sales are real. Our free zone company setup and mainland company setup pages itemise each route, including what the renewal costs in year two.
What do manufacturers get wrong when they pick a zone?
The six recurring mistakes are choosing on licence price, buying a light licence for a full industrial process, assuming Designated Zone status, budgeting land from directory figures, forgetting VAT on power and services, and running consumer sales through the qualifying entity. Each one costs a relocation, an amendment or the 0% rate.
The expensive ones are the ones found after the lease is signed, because by then every fix involves a landlord.
| Mistake | What it costs | The fix |
|---|---|---|
| Choosing on licence price | Nothing at first, then land and power you did not price | Compare land, levy, power and scope before the licence |
| Light licence for a full process | A licence amendment, a redrawn layout or a move | Send the process flow and chemicals list to the zone first |
| Assuming Designated Zone status | Raw materials inside the VAT scope; a lease you cannot undo | Get the annex entry for your plot in writing |
| Budgeting land from a directory | A budget off by a multiple | Written quote with escalation and levies |
| Forgetting VAT on power and services | Cash tied up every month | Register for VAT and recover input tax |
| Consumer sales in the qualifying entity | The 0% rate for five tax periods once the cap is breached | A separate mainland company for consumer sales |
Pro Tip: Write a one-page plant brief before you talk to any zone: the product, the process steps, the machines with their power ratings, the chemicals, the floor area, the headcount per shift, and who buys the output. Send the same page to every zone on your shortlist and ask each to reply on it. You get comparable answers, the zone's licence team sees the real process, and the written reply becomes your evidence if the scope is questioned later.
Which free zone should your factory pick?
Pick the zone on how your goods move, how heavy your process is and who buys from you. Sea-freight heavy industry fits JAFZA or Hamriyah, air-freight light goods fit Dubai South or SAIF Zone, budget assembly fits Ajman Free Zone, and a published land price with large plots points to KEZAD.
The table below is the summary the ranking pages do not publish.
| Your manufacturer profile | Zone to shortlist | Why, and what to watch |
|---|---|---|
| Heavy or bulk export by sea | JAFZA, or Hamriyah Free Zone on a Sharjah budget | Port on site and Designated Zone status; Hamriyah takes petrochemicals, oil and gas [4][9] |
| Light, high-value goods by air | SAIF Zone, or Dubai South | SAIF Zone has a full industrial licence; Dubai South is light only and its plot status needs written confirmation [8][10] |
| Budget light assembly | Ajman Free Zone, or SAIF Zone | Units from 100 m² in Ajman and 125 m² at SAIF Zone, both designated [10][12] |
| Needs a published land price and large plots | KEZAD | AED 32 to 38 per m² for serviced industrial plots, plus levy and escalation; confirm plot status [1] |
| Wants a Dubai address for light industry | Dubai South, or Dubai Industrial City | Dubai Industrial City is not designated, but the 0% route still applies to manufacturing [3][5] |
| Exporting via the Gulf of Oman | Fujairah Free Zone, or FOIZ for oil and petrochemicals | Port of Fujairah outside Hormuz; get facility terms in writing [22] |
| Selling mainly to consumers | The zone that fits the plant, or the mainland | Consumer sales never qualify, so the QFZP 0% rate is largely lost; consider Small Business Relief [3][16] |
| Supplying ADNOC or government | KEZAD or another zone that fits the plant, plus ICV | In-Country Value certification weighs heavily in tender awards; see our manufacturing guide |
For the last row, the certificate and the MoIAT registration behind it are covered in our manufacturing company setup guide. The founder who should slow down is the one not yet sure whether the output goes to businesses or consumers, because that answer moves the zone, the tax route and the entity structure.
Check which zone fits your plant→
Real Client Stories
These are composite examples built from the situations manufacturers most often face when choosing a zone. Names and details are illustrative, and the only figures used are the zones' own published tariffs and the rules cited above.
Arjun's metal furniture line (Dubai South, then SAIF Zone)
Arjun, an Indian founder assembling steel office furniture for fit-out contractors, took a Dubai South industrial licence because he wanted a Dubai address near Al Maktoum International. Assembly and packaging were inside its light-manufacturing scope. When he added powder coating, with a chemical pretreatment line and a curing oven, the zone told him the process sat outside the activities his licence listed. He moved coating to a SAIF Zone industrial licence and a 400 square metre warehouse, and kept assembly in Dubai. It cost a second licence, a second lease and roughly a quarter of trading. "I chose the address first and the process second."
Elena's food packaging plant (KEZAD)
Elena, a Russian founder producing food-grade packaging for GCC distributors, chose KEZAD because it was the only zone that gave her bank a land price it could model: AED 32 to 38 per square metre a year. Her 5,000 square metre plot came to AED 175,000 to 205,000 a year including the maintenance levy. The first plot offered was domestic-zone land, which would have put her outside the free zone and its 0% route, so she switched to a free zone plot in the same band and got its status confirmed in writing. "The published tariff started the negotiation. It did not finish it."
Tunde's skincare filling line (Ajman Free Zone)
Tunde, a Nigerian founder filling private-label skincare for salon chains, set up in Ajman Free Zone with an industrial licence and a warehouse, and his B2B sales qualified for 0%. Then a marketing hire launched an online shop selling direct to consumers from the same company. Consumer sales never qualify for a manufacturer, and his were on course to pass 5% of revenue within the year, which would have cost the 0% rate for that period and the next four. We moved the shop into a separate mainland company before year end. "The factory was fine. The shop nearly cost me five years of tax."
Your next steps on a UAE factory location
Three decisions matter for a factory, and none of them is the licence fee. Whether your process fits the zone's licence scope, light or full. Whether your plot is on the Designated Zone list by name, confirmed in writing rather than assumed. And who buys from you, because consumer sales never qualify for the 0% rate while business and export sales can. Land and power then set the budget, and outside KEZAD's tariff and the Etihad Water and Electricity rate, you get both numbers only by asking in writing.
BusinessDubai.ae has completed 700+ company registrations across the UAE, including industrial and manufacturing setups, with itemised pricing and no hidden fees. We will put a free zone company setup for your plant beside a mainland company setup for any consumer channel, request written land, power and Designated Zone confirmations from your shortlist, and hand the renewals, HSE follow-ups and visa files to our post-setup services team.
If you have not yet worked through the federal industrial licence, In-Country Value or customs duty exemption, start with our manufacturing company setup guide and come back to the zone choice with those answers.
Frequently Asked Questions
What is the best free zone for manufacturing in the UAE?
There is no single best zone; it depends on your process and how your goods move. JAFZA and Hamriyah suit heavy or bulk export by sea, KEZAD suits large plots at a published AED 32 to 38 per square metre, SAIF Zone and Dubai South suit light goods by air, and Ajman Free Zone suits budget light assembly.
Is JAFZA or KEZAD better for a factory?
JAFZA is better if you need Jebel Ali Port and a Dubai base; KEZAD is better if you need a large plot at a known price. KEZAD publishes serviced industrial land at AED 32 to 38 per square metre a year, while JAFZA publishes no land rate. Both appear on the Designated Zone list, though at KEZAD you should confirm your specific plot in writing.
What is the difference between Hamriyah and SAIF Zone for manufacturing?
Hamriyah Free Zone is port-side and built for heavy industry, petrochemicals, oil and gas, with plots from 2,500 square metres. SAIF Zone sits beside Sharjah International Airport and issues an explicit industrial licence with warehouses from 125 square metres. Both are Designated Zones in Sharjah.
Does a free zone manufacturer really get 0% corporate tax?
Yes, if it is a Qualifying Free Zone Person earning qualifying income. Ministerial Decision No. 229 of 2025 lists manufacturing and processing of goods or materials as Qualifying Activities. The company must also stay within the de minimis limit, keep its core activities in the zone and prepare audited accounts.
Can a free zone factory sell to mainland UAE companies and keep 0%?
Yes, for business customers. Under Cabinet Decision No. 100 of 2023, income from a non-free zone person is qualifying where it comes from a Qualifying Activity that is not excluded, and manufacturing is one. Sales to individual consumers remain non-qualifying.
What happens if a free zone factory sells to consumers?
Consumer revenue is always non-qualifying for a manufacturer, because transactions with natural persons are an Excluded Activity with no carve-out for manufacturing. If non-qualifying revenue exceeds the lower of 5% of revenue or AED 5,000,000, the company loses Qualifying Free Zone Person status for that tax period and the next four.
Does a factory have to be in a Designated Zone to get 0% corporate tax?
No. Manufacturing and processing carry no Designated Zone condition under Ministerial Decision No. 229 of 2025; only distribution at Article 2(1)(l) does. A manufacturer in Dubai Industrial City, which is not a Designated Zone, has the same 0% route as one in JAFZA.
How much does industrial land cost per square metre in the UAE?
KEZAD is the only zone in this comparison that publishes it: AED 32 to 38 per square metre a year for serviced industrial plots in Abu Dhabi, AED 36 to 45 for logistics plots and AED 15 to 20 in KEZAD Al Ain, plus AED 3 for maintenance. Every other zone quotes on application, so get a written quote.
Is Dubai Industrial City a free zone, and is it a Designated Zone?
Dubai Industrial City is a free zone and part of TECOM Group, but it is not on the VAT Designated Zone list. Manufacturers there can still reach 0% corporate tax, because manufacturing has no Designated Zone condition. Goods bought into the zone are inside the scope of VAT.
Is Dubai South a Designated Zone?
The Federal Tax Authority's list does not name Dubai South; it names Dubai Aviation City. Whether a particular Dubai South plot falls inside the designated area is a question to put to the zone, and the answer should come in writing before you sign a lease.
Are RAKEZ's Al Ghail and Al Hamra industrial zones Designated Zones?
Yes. Al Hamra, Al Ghail and Al Hulaila Industrial Zones were added to the Designated Zone list effective 4 July 2019, the same date RAK Airport Free Zone came off it. The RAKEZ business zones are not on the list.
Is KEZAD a Designated Zone?
Partly. The 2017 annex names Khalifa Industrial Zone and the Free Trade Zone of Khalifa Port, and KEZAD also leases domestic-zone land at the same tariff bands. Confirm your specific plot's status with KEZAD in writing before you sign.
What is FOIZ, and how is it different from Fujairah Free Zone?
FOIZ, the Fujairah Oil Industry Zone, is a specialist zone for oil, gas and petrochemical operators, listed separately from Fujairah Free Zone on the Designated Zone list. Fujairah Free Zone, beside the Port of Fujairah, is the general zone for trading, logistics and warehousing.
Do raw materials used in a Designated Zone factory attract VAT?
Not while they are incorporated into another good made in the same zone that is not itself consumed, under Article 51 of Cabinet Decision No. 52 of 2017. Consumables used up in the zone, services and utilities are taxed at 5%.
Do factory electricity bills in a Designated Zone carry VAT?
Yes. Article 51 of the VAT Executive Regulation treats water and energy supplied in a Designated Zone as supplied inside the State, so they carry 5%. A VAT-registered manufacturer normally recovers it as input tax.
What does electricity cost for a factory in RAKEZ, Ajman or UAQ?
Etihad Water and Electricity charges industrial customers a single rate of 40 fils per kWh plus a 4 fils surcharge, per its tariff page updated 22 August 2026. A plant using 20,000 kWh a month pays about AED 8,800 a month before VAT.
Who supplies power to factories in the Dubai free zones?
DEWA supplies JAFZA, Dubai Industrial City and Dubai South. Its industrial tariff is charged in consumption slabs, so check the current slab rates and surcharge on DEWA's own tariff page before you model a Dubai plant.
How long does it take to get power connected to a new factory?
No zone publishes a connection time that we could verify, and directory tables that list one cite no source. Write the contracted load and the energisation date into your lease or offer letter, with the zone's obligation if it slips.
What is Dubai South's industrial licence for?
It covers light manufacturing, assembly and packaging, which Dubai South describes as blending, mixing, purifying, assembling, forming, repacking and wrapping. A heavier process needs a zone with a full industrial licence, so send your process flow to the zone before you sign.
Does Ajman Free Zone support manufacturing?
Yes. Ajman Free Zone issues an industrial licence for manufacturing facilities, raw material import, manufacture and product export, offers land from 1,000 square metres and warehouses from 100 square metres, and is a Designated Zone. It suits budget light assembly best.
Is UAQ Free Trade Zone good for light industry?
It can be, if you need land rather than a unit. UAQ Free Trade Zone offers serviced plots from 2,500 square metres on 25-year renewable leases with the first five years at a fixed rate, labour accommodation on site, and Designated Zone status on both its listed entities.
Is Fujairah Free Zone good for manufacturing?
It suits manufacturers exporting through the Gulf of Oman, since the zone sits beside the Port of Fujairah outside the Strait of Hormuz, and it is a Designated Zone. Its published facility data is thin, so get plot sizes, rent and utility terms from the zone in writing.
What is the minimum plot size for industrial land in a UAE free zone?
It depends on the zone: Ajman Free Zone starts at 1,000 square metres, and Hamriyah, SAIF Zone and UAQ Free Trade Zone at 2,500. Hamriyah's sea-access maritime plots start at 5,000 square metres. JAFZA, KEZAD and RAKEZ do not publish a floor that we could confirm.
Do I need a civil defence approval for a free zone factory?
Yes. A JAFZA factory goes through Dubai Civil Defence in two stages, drawing review then inspection. Hamriyah plants go through the zone's EEHS department and then Sharjah Civil Defence, and SAIF Zone plants through Sharjah Civil Defence.
Which authority issues environmental permits for factories in Sharjah and RAK?
In Sharjah it is the Environment and Protected Areas Authority (EPAA), for both Hamriyah and SAIF Zone. In Ras Al Khaimah it is the Environment Protection and Development Authority (EPDA), which has an agreement with RAKEZ to speed up industrial approvals.
Do I need an ICV certificate to supply ADNOC from a free zone factory?
It is close to essential if you want to compete for ADNOC or government tenders, because In-Country Value scores feed their supplier selection. The certificate, the MoIAT industrial licence behind it and the costs are covered in BusinessDubai.ae's manufacturing company setup guide.
Can a free zone factory import machinery duty-free?
A factory registered with the Ministry of Industry and Advanced Technology (MoIAT) can apply for customs duty exemption on machinery and, once producing, on raw materials. It is not automatic, and it runs through MoIAT, separately from your zone licence and your Designated Zone status.
How much does a free zone industrial licence cost?
Zone-published licence fees are small: JAFZA says licences start at AED 5,000, Dubai Aviation City Corporation's tariff lists a new one-year Dubai South licence at AED 10,000, and Hamriyah publishes a basic licence at AED 11,000. Land, power, building and machinery cost many times more.
Can I run a factory from a flexi-desk licence?
No. An industrial licence needs physical premises, and JAFZA, for example, requires a production facility or warehouse inside the zone with periodic HSE audits. A desk licence gives you nowhere to put a machine and no industrial power connection.
Can a small manufacturer claim Small Business Relief instead of the 0% rate?
Yes, if revenue is under AED 3,000,000 and it does not claim Qualifying Free Zone Person status. Small Business Relief applies to tax periods ending on or before 31 December 2029 and does not depend on who your customers are, which suits a small plant with a consumer channel.
References
[1] KEZAD Group. Land Lease Tariff: serviced industrial plots in Abu Dhabi AED 32 to 38 per m² a year, serviced logistics plots AED 36 to 45, temporary industrial plots (domestic zone) and serviced industrial plots in KEZAD Al Ain AED 15 to 20, temporary laydown AED 10 to 12, Common Area Maintenance levy AED 3 per m² adjusted annually, annual escalation and a premium levy on strategic land (page modified 5 June 2026). kezadgroup.com
[2] Free zone directory and comparison pages, 2026. Advertised JAFZA land and warehouse figures from about AED 80 to 484 per m² (uaefreezonefinder.com and uaefreezonecompare.com, August 2026) and advertised year-one licence and visa bundles for manufacturing from AED 14,088 to 40,211 (freezonecompare.com, April 2026). Advertised figures, not zone quotes. freezonecompare.com
[3] Ministry of Finance. Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities: Article 2(1)(a) and (b) manufacturing and processing, Article 2(1)(l) distribution in or from a Designated Zone, Article 2(2)(a) transactions with natural persons, Article 2(3)(a) and (b) definitions, Article 3 de minimis, Article 5 audited accounts and loss of status for the period and four following. mof.gov.ae
[4] Cabinet Decision No. 59 of 2017 on Designated Zones, annex effective 1 January 2018 (unofficial translation): Khalifa Industrial Zone and the Free Trade Zone of Khalifa Port in Abu Dhabi; Jebel Ali Free Zone (North-South) and Dubai Aviation City in Dubai; Hamriyah Free Zone and Sharjah Airport International Free Zone; Ajman Free Zone; both Umm Al Quwain Free Trade Zone entities; RAK Free Trade Zone; Fujairah Free Zone and FOIZ. Twenty areas across seven emirates. dhruvaconsultants.com
[5] Federal Tax Authority. List of Designated Zones as amended by Cabinet Decisions No. 35 of 2018, 43 of 2019, 34 of 2021, 63 of 2021 and 81 of 2021: Al Hamra, Al Ghail and Al Hulaila Industrial Zones added and RAK Airport Free Zone removed effective 4 July 2019; Dubai Aviation City listed; Dubai Industrial City not listed. tax.gov.ae
[6] Jebel Ali Free Zone. Licence categories, the industrial licence requirement for an in-zone production facility or warehouse with periodic HSE audits, licences from AED 5,000, and JAFZA Gateway warehouses of 325 to 2,475 m². jafza.ae
[7] Dubai Industrial City, part of TECOM Group. Industrial land plots with power access of up to 4 MW and the zone's industrial licensing. dubaiindustrialcity.ae
[8] Dubai South and Dubai Aviation City Corporation. Industrial licence scope for light manufacturing, assembly and packaging, Logistics District warehouses from 500 m², and the Tariff of Fees, Registration and Licensing listing a new one-year licence at AED 10,000. dubaisouth.ae
[9] Hamriyah Free Zone Authority. FAQ basic licence cost of AED 11,000, licence application sub-zones, and the June 2025 corporate brochure: industrial land from 2,500 m² and 5,000 m² for sea-access maritime plots on 25-year leases with the first five years fixed, and warehouses of 200, 276, 400 and 600 m² with loads from 20 kW to 150 kW. hfza.ae
[10] SAIF Zone Authority. Licence categories including the industrial licence for raw material import, manufacturing, processing, assembly, packaging and export; pre-built warehouses of 125, 250, 400 and 600 m²; land plots from 2,500 m²; no published rates. saif-zone.com
[11] Etihad Water and Electricity. Tariff page: industrial electricity at a single slab of 40 fils per kWh plus a 4 fils surcharge (page last updated 22 August 2026). etihadwe.ae
[12] Ajman Free Zone Authority. Land from 1,000 m², warehouses from 100 m², rent payable annually in advance or three years upfront, utilities billed at Etihad Water and Electricity rates, and the industrial licence category. afz.gov.ae
[13] Umm Al Quwain Free Trade Zone. Industrial land from 2,500 m², serviced with power and water, on 25-year renewable leases with the first five years at a fixed land rate, with on-site labour accommodation (page dated January 2024). uaqftz.gov.ae
[14] Ministry of Finance. Cabinet Decision No. 100 of 2023 on Determining Qualifying Income for the Qualifying Free Zone Person: Article 3 Qualifying Income including transactions with non-free zone persons in Qualifying Activities, Article 5 Domestic Permanent Establishment income, Article 8 adequate substance in a Free Zone or Designated Zone. mof.gov.ae
[15] Federal Tax Authority. Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses: 0% to AED 375,000 and 9% above, and the Qualifying Free Zone Person regime. tax.gov.ae
[16] Ministry of Finance. Ministerial Decision No. 73 of 2023 on Small Business Relief as amended by Ministerial Decision No. 131 of 2026: AED 3,000,000 revenue threshold for tax periods ending on or before 31 December 2029, not available to a Qualifying Free Zone Person. mof.gov.ae
[17] Federal Tax Authority. Cabinet Decision No. 52 of 2017, VAT Executive Regulation, Article 51: conditions for Designated Zone treatment, goods incorporated into another good in the same zone, transfers between Designated Zones under customs suspension, water and energy and services supplied inside the State, and VAT residence of zone companies. tax.gov.ae
[18] Federal Tax Authority. Designated Zones VAT Guide (VATGDZ1): release of goods from a Designated Zone into the mainland as an import, and goods shipped out of the UAE from a Designated Zone. tax.gov.ae
[19] Dubai Electricity and Water Authority. Slab tariff page for industrial, commercial and residential electricity. dewa.gov.ae
[20] RAK Economic Zone. Al Ghail, Al Hamra and Al Hulaila industrial zones, industrial licence scope, HSE NOC guidance, and the RAKEZ agreement with the Environment Protection and Development Authority on industrial approvals. rakez.com
[21] Hamriyah Free Zone Authority EEHS guidance and Sharjah Environment and Protected Areas Authority: environmental permitting for industrial premises in Sharjah free zones, with the zone's EEHS review and Sharjah Civil Defence approval. hfza.ae
[22] Fujairah Free Zone Authority. Zone location beside the Port of Fujairah on the Gulf of Oman. freezone.fujairah.ae
[23] Ministry of Finance. Ministerial Decision No. 84 of 2025 on Audited Financial Statements: the AED 50,000,000 revenue limb and the Qualifying Free Zone Person limb. mof.gov.ae
[24] BusinessDubai.ae. How to Set Up a Manufacturing Company in Dubai (2026): the Dubai Municipality, Dubai Civil Defence and DEWA approval chain. businessdubai.ae
