Free zone areas aka free trade zones in Dubai, are designated business zones that exempt the companies operating in them from taxation. These areas are exclusively used for business and don’t have any residential properties. Setting up business in a free trade zone is perfect for foreign companies and business owners that have the bulk of their business outside the UAE, but are looking to use the UAE for regional manufacturing or as a distribution base. Free trade zones in Dubai have been designed to encourage foreign investment in Dubai, as its tax exemption allows for a lucrative business environment for the registered companies in the Dubai free zone. Business owners who set up their business in a free trade zone have 100% ownership of the business.
There are currently 24 free zones operating in Dubai, with the popular ones being Dubai Multi Commodities Centre (DMCC) and Jebel Ali Free Zone (JAFZA) which is also one of the oldest free trade zones in Dubai.
Dubai’s freehold areas are locations where non-GCC nationals can own properties. Purchasing a property in a freehold area allows a buyer ownership of the land and the housing unit on the property. Once a buyer has purchased any freehold property, they are free to sell, lease or live on the property. The buyer of a freehold property doesn’t need to be a resident of the UAE, foreign nationals can purchase land in the freehold areas in Dubai.
The decree to buy property in Dubai on a freehold basis was passed in 2002 by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai. When you purchase a property in any of the freehold areas in Dubai, you have registered the buyer’s name with the Dubai Land Department (DLD) as the ‘landowner’ – this grants you the title deed for the property. The freehold contract is applicable in perpetuity, and when the owner passes away, an heir can inherit it. So essentially, the property stays in the same family.
Currently, there are 23 neighbourhoods which have been designated as freehold location in Dubai, with most popular freehold areas in Dubai being Dubai Marina, Downtown Dubai and Jumeirah Village Circle (JVC).