It has been observed that since 1970s number of countries across the globe has started thinking to buildup free trade zone to facilitate investors and business people to establish their business. It is actually a specific area which is free from tariffs and taxes and allows companies to import goods for manufacturing of different items and export of their products at reduced manufacturing cost. Developed countries allocate certain specific areas within their borders for this purpose. Establishing such zones actually support foreign investors to make investment in other countries. It also minimizes trade barriers and enable investors to do export and import under good economic conditions. Many business owners are not aware with free trade zones and their advantages. Besides eliminating taxes and tariffs, it also reduces routine rules and regulation. Free trade zones play very important role to improve global market and successfully attract foreign investors to make investments across the borders.
Free Trade Zones are ideally located near entry ports of any country. Choosing locations near to air port and seaport for this zone is just to facilitate foreign investors and business persons. But in some cases it’s better to build this zone in other areas near to oil refineries and large manufacturing sites as it is not possible to move such industries from their original location. Investors belong to any business category including manufacturing, import or export can take benefits of establishing their businesses here. Common economic benefits they will be enjoying include elimination of all custom duties, certain tax exemptions and tariff relief. Such areas also facilitate other business related operations like excellent storage facilities, enhanced security and insurance on goods and exceptional operating facilities.
Free Trade Zone in UAE
United Arab Emirates is experiencing an economic boom every day. It is earning highest per capita income among countries located in this region. Highly stable economy of this country successfully attracted investors across the globe who wants to take benefits of its strong economy. UAE also have strong association with oil industry that is indeed a richest industry in whole world. It has been observed that government also works on other industries to improve and modernise its infrastructure. Moreover, it also announces several schemes to drag and facilitate foreign business people on its shores. Government took such steps to build country’s image as one of the most industry friendly country of this world. Free trade zone is actually an investment scheme to facilitate foreign investors.
Famous Free Trade Zones in UAE
UAE has buildup various free zones across its seven emirates. But Dubai is exceptionally famous for its free trade zone areas. Well renowned areas include Dubai Internet City, Dubai Airport Free Zone and Jebel Ali Free Zone. Major advantages of investing in a free zone of UAE are listed below:
- Foreign Investors will be entitled for 100% ownership of their company.
- They are allowed to do 100% tax free import and export.
- Investors can get 100% repayment of capital and profits.
- They also get special exemption from corporate taxes for 15 years. Moreover they can renew their contracts for next 15 years.
- Investors are not required to pay any kind of income taxes.
- Government also provides special assistance for labor recruitment and support for other additional things like housing and sponsorship.
How Free Trade Zone in UAE help foreign investors?
Free trade zones in UAE facilitate investors on all levels whether they are large manufacturers, small business and even an individual person. It provides various additional incentives for businessmen establishing their manufacturing plants and service centers in these zones. Government implement specific laws related to ownership, hiring labor and tax payment. As we all know that whole world has become a global village and it has become a common trend of investors to make investments in other countries. Free trade zones facilitate foreign investors to make profitable investments with negligible taxes and tariffs. Government of UAE is paying special attention to make these areas well equipped with all amenities encompassing strong communication system requires to setup business.
In UAE anyone can utilize free trade zone whether he belongs to manufacturing business, service provider and import/export business.