Dubai City Information Site

Tax Free Trading & Business at the Jebel Ali Free Zone Dubai

Hi, Sunil here to talk about Jebel Ali free zone Dubai. (I have updated some of the facts to reflect current numbers as of 2008; Updated in 2012)

You have most likely already read about my discussion on the 1985 decree and establishment of this tax free zone that launched Dubai on the business platform.

Dubai has not looked back since.

When you think about Dubai and the business atmosphere, it is hard not to think about the Jebel Ali free zone in Dubai.

This is one establishment that has single handedly managed to give Dubai business, local or other wise a boost.

Personally, I think that the whole idea is just fantastic given the fact that revenue from oil contributes a bare 6% to Dubai’s economy. Naturally, the whole idea is turning out to be one big opportunity bonanza for everyone, including multi-national companies.

The fact is that even those who live in Dubai don’t know much about the juicy details regarding JAFZA as it is called. Well, JAFZA as the Jebel Ali free zone Dubai is called, is an economic free zone offering any number of incentives to companies to set up shop within its boundaries.

For one, if you are planning to open a company in the UAE in areas other than the designated ‘free zones’ you would be required to enter into a partnership with a local company or sponsor, with the other person/company holding at least 51% of the company stock and profits. But here in JAFZA, you can open a company and own it outright with the promise of not having to pay any hefty corporate tax.

Jebel Ali Free Zone Dubai

In reality, you would be required to pay about 0% of company tax and the benefits do not end there. JAFZA was and still is a bold venture, one that started the ball rolling for the business development of Dubai as a whole. Today, the Jebel Ali free zone, coupled with the Jebel Ali port, stands out as an example as to what a simple but aggressive idea can do.

Sounds a bit like a sales pitch but that is the literal truth about JAFZA, an idea in the making for it is undergoing further development as I write this (2008). Located some 35 kilometers south of Dubai; JAFZA has become the perfect setting for businesses to expand further.

Although you may know the bare essentials about JAFZA, you may not be aware of the projects currently underway here like the AED 2.5 billion Jebel Ali Free Zone Convention Center Complex which should go a long way to helping both local and international businesses achieve their goals.

Today many economic free zones have appeared all over UAE as a result of JAFZA. But for some reason, none of them can match up to the original. Maybe it is the location of the Jebel Ali port, or perhaps everyone wants a piece of the original? I am not sure.

Today, the Jebel Ali free zone is home to some 6,000 companies, a long cry from just 19 when it was started in 1985. No wonder that most of the foreign investment comes from here especially when you consider facts like 0% import or re-export duties, no personal tax, no currency restriction and certainly no restriction on hiring foreign employees.

These are just some of the reasons why you can find at least 150 of the fortune 500 companies currently camping out in JAFZA! That is a huge number concentrated in one small area. I don’t know of any other area like that, not even New York City.

View this little history piece on Dubai ports and their contribution to what Dubai has become today

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