Choosing the Right Free Zone in the UAE: A Comparison of IFZA, Meydan, and DMCC

Dubai has recently seen monumental growth and expansion due primarily to its emphasis on trade and commerce, creating advantageous business opportunities for those ready to take advantage of them.

In H1 2022 alone, Dubai witnessed a significant growth in new business licenses, with 45,653 licenses issued. This marked a 25% increase compared to H1 2021, where 36,647 licenses were issued.

Before deciding to set up a company in Dubai, one essential factor to consider is the free zone you want to operate under.

This article highlights three of the popular free zones in Dubai: Meydan Free Zone, International Free Zone Authority (IFZA), and Dubai Multi Commodities Centre (DMCC).

1- Meydan Free Zone Overview:

Strategically located near Dubai’s bustling downtown, Mohammed Bin Rashid Al Maktoum City, and the Dubai Logistics Corridor, Meydan Free Zone offers a cost-effective business solution that appeals to investors worldwide.

Moreover, with the freedom to hire foreign labor and no duty taxes on imports and exports, Meydan Free Zone fosters a thriving environment for international trade.

To ensure entrepreneurial success, Meydan Free Zone offers a host of benefits, such as:

– Enjoy the convenience of a MOFA-approved business license:

– FZ LLC operating licenses,

– Over 3500 business license activities,

Business Activities:

You can check from this complete list if your business activity available in Meydan Free Zone.

What are the benefits of Meydan Free Zone?

Meydan Free Zone permits a single license to cover different commercial activities, including up to three business activity groups in various industries.

While most free zones prohibit direct trade with Dubai and UAE mainland businesses, Meydan Free Zone allows its authorized businesses to work together and trade with companies on the mainland through a DET Permit obtained from the Dubai Economy and Tourism Department.

The free zone also helps entrepreneurs get through the process of obtaining the permit and offers the unique ability to lease office space outside the zone by providing a No Objection Certificate (NOC) within one working day.

2- IFZA Overview:

IFZA started out in 2018 in the Fujairah, but it has since moved to the active Dubai Silicon Oasis (DSO) in Dubai.

IFZA is a new business center in Dubai that is run by Dubai Silicon Oasis. IFZA has become very popular with investors around the world in a very short amount of time. This is mostly because it offers attractive company setup packages with highly discounted fees for 3-year and 5-year license options.

Business Activities：

IFZA has two types of business activities:

– Non-Regulated Business Activities that don’t need external approvals,

– Regulated Business Activities that require approval from specific Dubai and/or UAE Federal Government Entities.

What are the benefits of setting up in IFZA Free Zone?

IFZA Academy, a valuable resource for professional development and industry knowledge within the IFZA ecosystem.

In a nutshell, this program is designed to enhance the capabilities of IFZA’s professional partners.

The Academy offers a wide range of training programs and resources to ensure they stay up to date with the latest regulations, industry trends, and best practices.

How the IFZA Academy assists those who wish to open their own business?

While it may not offer direct assistance to business owners in opening their own companies, the IFZA Academy plays a crucial role in supporting their journey.

IFZA focuses on training their Professional Partners, facilitating immense information sharing that translates into a faster, smoother, and more efficient incorporation process for license holders.

3- DMCC Overview

The Financial Times fDi magazine has named it the ‘Global Free Zone of the Year‘ eight times.

DMCC is the Free Zone that boasts global connectivity and serves as the premier hub for trade and enterprise in commodities.

List of DMCC Approved Activities:

You can find the complete list of DMCC-approved activities in a variety of businesses and sectors here.

What are the benefits of setting up in DMCC?

DMCC is one of four Free Trade Zones in Dubai that have signed a strategic partnership agreement with the Department of Economic Development (DED) to collaborate on company licensing in Dubai.

The Dual License shows as a ‘branch’ on the DED Trade License; however, it is not a true UAE Foreign Branch and does not require Ministry of Economy Registration.

It is simply a permission and not a separate legal organization. Only DMCC service licensees with eligible operations are eligible to apply for a No Objection Certificate (NOC) to operate onshore.

At D’Andrea & Partners Legal Counsel, we’ll help you understand all the potential benefits for your business in the IFZA, Meydan, DMCC, or any other free zone in the UAE. We’ll also review any necessary changes to your current corporate structure.