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Why the UAE

Why Investors Use UAE Free Zones

The Ministry of Economy and Tourism counts more than 40 free zones across the UAE, which allow tax exemptions and 100% ownership for foreign investors. Each zone has its own authority that licenses companies, leases offices and sponsors visas.

Updated October 2026 · Figures checked 21 October 2026

Free zones in the UAE
40+1
Free zones in the UAE
Corporate tax on qualifying income
0%2
Corporate tax on qualifying income

Why Investors Use UAE Free Zones

The advantages, and the limit

  • 100% foreign ownership in every zone.
  • 0% corporate tax on qualifying income for a Qualifying Free Zone Person; 9% on other income.
  • No restrictions on foreign trade, as long as goods do not enter the mainland without customs clearance.
  • The limit: selling on the UAE mainland needs a distributor, a mainland branch or company, or the required licences.

Source: UAE Ministry of Economy and Tourism: Free zones for company incorporation; Federal Tax Authority: What are the UAE CT rates?; UAE Government Portal: Running a business in a free zone1,2,3

Sources

  1. UAE Ministry of Economy and Tourism: Free zones for company incorporation
  2. Federal Tax Authority: What are the UAE CT rates?
  3. UAE Government Portal: Running a business in a free zone

Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

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