Free Zones inthe United Arab Emirates PKF - Free Zones in the UAE Contents Preface 1 PKF in the UAE 3 Introduction 7 Economy 9 Jebel Ali Offshore 13 Ras Al Khaimah Offshore 15 Free Zones in the UAE 17 Free Zones in Dubai 21 Free Zones in Sharjah and the Northern Emirates 65 Free Zones in Abu Dhabi 79 About PKF 85 PKF International 87 PKF UAE Publications 89 Annexures 91 PKF - Free Zones in the UAE - Contents PKF - Free Zones in the UAE - Contents Preface The globalization of trade and foreign investment over the turn of the century, as expressed in the World Trade Organisation (WTO), has significantly exposed economies to competitive pressures of the global economy. New global trading rules under the WTO present both steep challenges and fresh new opportunities to national economies. In this respect, trade integration will become a key policy objective if a country is to succeed in increasing the volume of trade and economic development. In pursuing this objective, there are a variety of trade instruments that countries have developed – the most common of which are Free Trade Zones. Although the general concept of a Free Trade Zone is uniform in nature, one encounters a number of different types of Free Trade Zones in different countries. They vary according to national characteristics and the goals set for them by national governments. The Free Trade Zone is not a new concept. It is at least as old as western civilizations, having existed in 300 BC in the Greek island of Delos, which as a result became one of the wealthiest islands in the world for nearly a century. It is estimated that there are now well over 3000 Free Zones operating in about 120 countries. The reason for this remarkable growth is that Free Trade Zones have been an extraordinary mechanism for fostering export-led industrialization worldwide. They promote economic development by attracting investment and generating employment and foreign exchange earnings. Indeed, the Free Zone concept is so powerful, that more and more countries are recognizing a new paradigm of Free Zones. While the old Free Zone was often described as static, labour-intensive, incentive driven, the new zone paradigm is a dynamic investment-intensive, management driven one, enabling an integrated economic development tool. In the UAE, the first Free Zone at Jebel Ali came into existence in 1985 and provided international businesses and corporations a hub, which connected the East and the West and expanded the horizons of their operations. Today there are more than two PKF - Free Zones in the UAE - Preface 1 dozen Free Zones only in Dubai with around 40 Free Zones in all in the UAE providing top class facilities and infrastructure for doing business and most importantly are industry specific in nature. This booklet contains relevant information about these zones. We sincerely believe that the information provided in this booklet would be a guiding torch to investors for selecting a particular zone for their business. 2 PKF - Free Zones in the UAE - Preface PKF in the UAE PKF UAE is a member of PKF International Limited, a network of legally independent member firms. PKF in the UAE operates as a branch of a foreign company providing audit and management assurance, business consulting, regulatory and taxation and corporate finance services. We provide an integrated service spanning multiple disciplines to a large number of local, regional and international clients. With a nearly 35 year old presence in the UAE we have offices at Dubai, Sharjah, Abu Dhabi, Jebel Ali Free Zone, Dubai Internet City and the DIFC. Through each of our offices, our clients have access to the expertise and experience of more than 100 qualified professionals including Chartered Accountants, Cost Accountants, Certified Public Accountants, Certified Internal Auditors and MBAs. Range of Services PKF professionals in the UAE can provide expert advice on various business issues. Our services include: Audit and Management Assurance Services • External Audit • Internal compliance audit • Internal audit - compliance with the requirements of the Dubai Financial Services Authority • Organisation reviews and system studies • Due diligence reviews • Forensic and other investigations • Training and consulting on IFRS • Back office support services – accounting and payroll • Outsourced accounting and payroll services for companies registered in the Dubai International Financial Centre • Management information systems PKF - Free Zones in the UAE - PKF in the UAE 3 Management Advisory Services • Business practices (process) assessment • Business risk identification • Accounting and procedure manuals • Market analysis and feasibility studies • Financial projections • Information memoranda • Business and share valuations • Identification and valuation of intangible assets on a business acquisition • Corporate structuring, acquisitions and disposals • Joint ventures and strategic alliances • Advice on partner/shareholder entry/exit • Fund raising Offshore and Free Zone Services • Entry strategy • Free Zone and offshore company formation • Company secretarial services • Registered agents services • Taxation Locations in the UAE DUBAI/DIFC AI Maidan Tower 2, Suite 301-303, AI Maktoum Street, P.O. Box 13094, Deira, Dubai, U.A.E. Tel: (+971) 4 223 6508; Fax: (+971) 4 223 4524 E-mail:
[email protected] DUBAI INTERNET CITY Office No.217, Bldg. 13, P.O. Box 13094, Tel: (+971) 4 449 5430; Fax: (+971) 4 390 8836 Dubai Internet City, Dubai, U.A.E. E-mail:
[email protected] 4 PKF - Free Zones in the UAE - PKF in the UAE JEBEL ALI FREE ZONE Lease Office Building 16, Office No.133, 1st Floor, Jebel Ali Free Zone, P.O. Box 16952, Jebel Ali, U.A.E. Tel: (+971) 4 881 5452; Fax: (+971) 4 881 5451 E-mail:
[email protected] ABU DHABI The Blue Tower, 15th Floor, Sheikh Khalifa Street, P.O. Box 7479, Abu Dhabi, U.A.E. Tel: (+971) 2 626 1715; Fax: (+971) 2 626 1716 E-mail:
[email protected] SHARJAH Golden Towers, 11th Floor, AI Buhaira Corniche, P.O. Box 6207, Sharjah, U.A.E. Tel: (+971) 6 574 0888; Fax: (+971) 6 574 0808 Visit us at www.pkfuae.com PKF - Free Zones in the UAE - PKF in the UAE 5 United Arab Emirates Ras Al Khaimah Umm Al Quwain Ajman Sharjah Dubai Abu Dhabi Al Ain 6 PKF - Free Zones in the UAE Fujairah Introduction The United Arab Emirates (UAE) was established on 2nd December 1971 and is a federation of seven emirates, namely: Abu Dhabi, Dubai, Sharjah, Ras Al Khaimah, Umm Al Quwain, Ajman and Fujairah. The United Arab Emirates is situated in the Eastern part of the Arab world. It overlooks the Gulf of Oman to the East and the Arabian Gulf to the North. The Arabian Gulf and Gulf of Oman are linked by the Hormuz Strait. The UAE covers an area of approximately 83,600 square kilometers (32,654 square miles), including numerous islands. The coastal area consists primarily of salt marshes. Inland, the topography is predominantly desert, sand dunes and gravel plains with isolated oases, the largest of which are located at Al Ain and Liwa. The Hajar Mountains lie close to the sea on the East coast. The Emirates have a common cultural heritage but the tribal links are very strong within each Emirate. Abu Dhabi is ruled by the Al Nahyan family, which belongs to the Bani Yas tribe. Dubai is ruled by the Al Maktoum family, which belongs to the Al Bu Falasah tribe. The other emirates are also ruled by various families, which belong to powerful tribes of the respective regions. The three most populated Emirates are Abu Dhabi, Dubai and Sharjah; more than 80 percent of the total population belongs to these emirates. The official language is Arabic, and all communications with the government must be in Arabic, although among the expatriate communities various other languages are spoken. Foreigners will find that English, Hindi / Urdu and Malayalam are widely understood. English is used for all written communication between businesses. PKF - Free Zones in the UAE - Introduction 7 8 PKF - Free Zones in the UAE - Introduction Economy The UAE economy has been transformed from a subsistence economy to one of the most prosperous and highly advanced societies in the world. The economy experienced a sudden explosion in GDP in the 1970s and 1980s due to rising oil prices and adverse conditions in the oil market. The government had adopted a policy of controlled diversification, which led to the rise of non-oil sectors and most importantly trade. A combination of diversification and financial reserves has given the UAE economy considerable resilience, which is reflected in the economy. New corporate, stock market and banking legislation, review of laws and development of additional legislative framework are under review. The government is constantly aiming at promoting efficiency and transparency which would further boost the economic development in the UAE. Petroleum dominates the economy of the UAE. At one time an underdeveloped area, by 1985 the region had the highest per capita income in the world. The immense wealth has been invested in capital improvements and social services in all seven of the Emirates. Petroleum production is centered in Abu Dhabi and Dubai. Industrial development is essentially petroleum related. After riding the crest of the wave of fast paced modernization and a booming economy, the country has also grappled with the global recessionary pressures in recent times. Dubai is seeking long term investments as the Emirate’s regional status will continue to open huge opportunities for multinationals interested in the region’s markets and its neighboring areas in the Middle East and North Afrcian region. Tourism, continued improvement in the transportation infrastructure and the government’s proposed intention to allow FDI in certain sectors, are expected to promote growth in the retail sector in the near future. PKF - Free Zones in the UAE - Economy 9 Population According to end of 2010 figures available from the UAE National Bureau of Statistics, UAE’s population reached 8.26 million compared to 5.01 million in 2006, representing a growth of 65% in four years. The population has been growing at a steady rate for the last decade. The UAE has the highest population growth rate in the Arab World due to improved health services and the ongoing migration of expatriates to the country. As a result of the consistent growth, the UAE has maintained its position as having one of the highest per capita incomes in the World. The growth has increased the demand for all kind of goods. Consequently there has been growth in trade and related activities like imports, manufacturing, etc. Population (in Millions) (Estd) Total 2008 8.07 2009 8.20 2010 8.26 Source: UAE National Bureau of Statistics Foreign Trade The foreign trade had a noticeable and continual increase before recession affected growth rates in the region. In the process of regenerating a consistent growth rate, the push in imports is accredited to intensification of the re-export trade, a distinctive fact of the UAE economy. This has been further supplemented by the development of capital and consumption goods. Foreign Trade (US$ in Billions) (Estd) Imports Export 2008 176.3 239.2 2009 149.7 191.8 2010 161.4 212.3 Source: Business Monitor International Limited Gross Domestic Product (GDP) Total GDP for the year 2010 was estimated at AED 1,093 billion of which the non-oil sector to attract investments of expertise and capital, the governments of the individual Emirates contributed AED 427 billion. Figures for GDP in 2008 were AED 1156 billion with non-oil sector seeking to reinvigorate the business environment. 10 PKF - Free Zones in the UAE - Economy The GDP by sector for 2008, 2009 and 2010 is as follows: GDP (AED in Billions) (Estd) Oil Sector GDP Non-Oil Sector Total GDP 2008 729 427 1,156 2009 706 287 993 2010 749 344 1,093 Source: Ministry of Planning PKF - Free Zones in the UAE - Economy 11 12 PKF - Free Zones in the UAE - Economy Jebel Ali Offshore The announcement of the Jebel Ali Free Zone Offshore Companies Regulations in early 2003 by the Jebel Ali Free Zone Authority was highly appreciated by the investors. The regulation permitted formation of offshore companies within the Free Zone and confirmed the Free Zone’s commitment to continuous growth in a rapid, dynamic and changing economic environment keeping pace with world-wide developments. Offshore companies can be suitably utilized as an investment holding company; real estate holding company; for further investments in local or Free Zone companies; and for International Trading. Firms of accountants and lawyers as approved by the Authority are permitted to provide services to clients for registering offshore companies, registered office and for acting as agents for the companies. A recent decision by the Dubai Land Department has made Jebel Ali Offshore companies more attractive to investors. The Dubai Land Department signed a Memorandum of Understanding with the Jebel Ali Free Zone Authority to regulate registration of property in the name of offshore companies. In effect, offshore companies incorporated in foreign jurisdictions such as Isle of Man, British Virgin Islands, Mauritius, etc. will not be permitted to register ownership of property in Dubai except through a Jebel Ali Offshore Company. This new policy is also expected to apply to foreign-owned free zone or offshore companies established in other Emirates. Salient features of the offshore companies are: • Limited Liability Company • No minimum capital requirement • Requirement to have an approved registered agent either within the Free Zone or in the Emirate of Dubai • Requirement to appoint shareholder, Directors, Manager and Secretary • Bearer shares not permitted • No personal or corporate income tax PKF - Free Zones in the UAE - Jebel Ali Offshore 13 • Issue of shares of only one class permitted. • Requirement to have accounts audited on annual basis. Offshore companies are allowed to: • Have contacts with legal consultants, lawyers, accountants and auditors • Have bank account in theUAE • Become shareholders in a new or existing Free Zone Entities or an LLC • Hold shareholders and directors meeting within the UAE • Carry out International Trading Offshore companies are not allowed to: • Carry on business with persons resident in the UAE • Own an interest in real estate property situated in the UAE, other than a lease property referred to in the regulations or approved by the authorities • Carry on a banking business • Carry on business as an insurance or re-insurance company, insurance agents or insurance brokers • Carry on any other business which may, by regulations be prohibited by the authorities 14 PKF - Free Zones in the UAE - Jebel Ali Offshore Ras Al Khaimah Offshore Similar to the concept of offshore company in the Jebel Ali Free Zone , the Ras Al Khaimah Free Trade Zone Authorities have laid down the regulations to incorporate International Companies in the Ras Al Khaimah Free Trade Zone (RAKFTZ). The regulations prescribe that the incorporation of the International Company shall be through a registered agent. The firms of accountants and lawyers approved and licensed for that purpose by the RAKFTZ are permitted to provide services to clients for registering International companies, registered office and for acting as the agents for the companies. Salient features of the International Company are: • Companies will have a limited liability status and the possible name suffixes are “Limited” or “Incorporated” or their abbreviations “Ltd” or “Inc” • No minimum capital requirement • Requirement to have an approved registered agent either within the Free Zone or in the Emirate of Dubai • Requirement to appoint shareholder, Directors, Manager and Secretary • Bearer shares are permitted. However, the bearer shareholding is permitted with a restriction that it shall be held by the registered agent acting as a nominee on behalf of the beneficial shareholder. The beneficial shareholders details and any change thereof would be required to be furnished to the RAKFTZ • Shares can be of different classes • Provision for the shareholders / members to apply for the inheritance law of their choice • No personal or corporate income tax • No requirement to have the accounts audited on an annual basis International companies are allowed to: • Have contacts with legal consultants, lawyers, accountants and auditors • Have bank account in the UAE PKF - Free Zones in the UAE - Ras Al Khaimah Offshore 15 • Become shareholders in a new or existing Free Zone Entities or an LLC • Hold shareholders and directors meeting within the UAE • Carry out International Trading International companies are not allowed to: • Carry on business with persons resident in the UAE • Carry on a banking business • Carry on business as an insurance or re-insurance company, insurance agents or insurance brokers • Carry on any other business which may, by regulations be prohibited by the authorities To attract investments of expertise and capital, the governments of the individual Emirates seek to provide an attractive business environment. The following are some of the principle features of the economic and business environment in the UAE: • A virtual absence of taxation • Excellent communication systems • A well-structured financial sector with no exchange control regulations • A coordinated infrastructure that provides all essential utilities to the major centers • Free Trade Zones that ensure ease of registration and efficient operating facilities • An attractive social environment, including modern educational, medical and recreational facilities • Liberation of property ownership, which is one of the factors contributing to the UAE’s booming property market The Government’s far-sighted planning and fast execution of projects has led to the most phenomenal development in the second half of the last century - the rise of a city, the emergence of a new economy. 16 PKF - Free Zones in the UAE - Ras Al Khaimah Offshore Free Zones in the UAE The Free Trade Zones (FTZs) of the UAE have been a veritable opportunity for the country to showcase its development and special area approach. The UAE in the last decade has witnessed a quantum increase in industrial development and one of the most significant and remarkable achievement is the success of Free Zones. Free Trade Zones are established under a special Decree passed by the Ruler of the Emirate in which the Free Zone is created. To date the Free Zones have been successful in attracting a large number of foreign companies and foreign direct investment. The share of the Free Zones in non-oil exports has increased considerably along with the net exports from the Free Zones. The incentives offered by various Free Zones of the UAE are generally similar and include: 100% foreign ownership 100% tax exemption Quick approval procedures Full repatriation of capital & profits Extended leases Abundant & inexpensive energy An independent Free Zone Authority (FZA) governs each Free Zone, and is the agency responsible for issuing FTZ operating licenses and assisting companies with establishing their business in the FTZ. Investors can either register a new company in the form of a Free Zone Establishment (FZE)/Free Zone Company (FZCO) or simply establish a branch or representative office of their existing or parent company based within the UAE or abroad. A FZE is a limited liability establishment, incorporated in a Free Zone, owned by one natural or judicial person, whereas a FZCO is a limited liability company incorporated in a Free Zone by more than one shareholder, generally up to five. FZE/FZCOs are governed by the rules and the regulations of the Free Zone in which they are established. There is a minimum capital requirement ranging from AED 50,000 to AED 1,000,000 depending upon the selected Free Zone. Some free zones have even relaxed the capital requirements to attract more investors. PKF - Free Zones in the UAE - Free Zones in the UAE 17 Once a legal presence has been established in the Free Zone, the business will need to lease premises or land and acquire a license from the FZA. Different types of licenses are issued in different Free Zones; however companies with valid licenses only can conduct business within the Free Zone or abroad. To sell their products in the UAE, a UAE registered official agent is required. Services and products can be obtained from and within the UAE without an agent. The licenses issued by the FZA can be renewed annually as long as a lease agreement is in force with the FTZ. Given hereunder are various Free Zones established in the Emirate of Dubai: 1. Jebel Ali Free Zone 2. Dubai Cars & Automotive Zone 3. Gold & Diamond Park 4. Techno Park 5. Dubai Internet City-Tecom 6. Dubai Media City - Tecom 7. Dubai Studio City - Tecom 8. Intíl Media Production Zone-Tecom 9. Knowledge Village-Tecom 10. Dubai International Academic City -Tecom 11. Dubai Outsource Zone- Tecom 12. Energy & Environment Park-Tecom 13. Dubai Biotechnology & Research Park -Tecom 14. Dubai Industrial City 15. Dubai Multi Commodities Center 16. Jumeirah Lake Towers 17. Dubai Flower City 18. Dubai Airport Free Zone 19. Dubai Healthcare City 20. Dubai Silicon Oasis 21. Dubai International Financial Center 22. International Humanitarian City 23. Dubai Logistics City 24. Dubai Textile City 25. Heavy Equipment & Trucks City 26. Dubai Auto Parts City Given hereunder are the various Free Zones established in the Emirate of Sharjah and the Northern Emirates:1. Sharjah Airport Free Zone 2. Hamriyah Free Zone 3. Ajman Free Zone 4. Fujairah Free Zone 5. Fujairah Media Zone/Creative City 6. Ahmed Bin Rashid Free Zone (Umm Al Quwain) 7. Ras Al Khaimah Free Trade Zone (RAKFTZ) 8. Ras Al Khaimah Investment Authority (RAKIA) 9. Ras Al Khaimah Media Free Zone (RAKMFZ) 18 PKF - Free Zones in the UAE - Free Zones in the UAE Given hereunder are the various Free Zones established in the Emirate of Abu Dhabi: 1. Abu Dhabi Airport Free Zone 3. Two Four 54 2. Free Trade and Logistics Zone (Taweelah) The UAE Free Zones have been among the strong pillars of the country’s economic performance attracting much foreign investments, creating thousands of jobs, and facilitating the needed transfer of technology into the country. Together, the Free Zones account for more than half of the country’s non-oil exports and underpin the UAE’s ranking as the third most important re-export centre in the world. The Free Zones help in keeping the engine of economic diversification rolling by attracting foreign investment in the private sector, which is central to the region’s overall plan aimed at reducing its economic dependence on oil, while creating employment for its nationals. Moreover, the Free Zones are swiftly proving to be the mechanism not only for an impetus to diversification, but also for changing the very face of economic activity in this region. PKF - Free Zones in the UAE - Free Zones in the UAE 19 20 PKF - Free Zones in the UAE - Free Zones in the UAE FREE ZONES IN DUBAI PKF - Free Zones in the UAE - Free Zones in Dubai 21 THE JEBEL ALI FREE ZONE [JAFZ] The Jebel Ali Free Zone (JAFZ) was established by decree No. 1 of 1985 and is located in the Emirate of Dubai. It is around the world’s largest man-made port. Jebel Ali was initially seen as the ideal base for multinationals to warehouse and distribute their products in the Gulf. Over the years, the range of industries has grown from distribution to include the whole spectrum of manufacturing, trading and services and the market has grown to cover regions well beyond just the Middle East. The Free Zone is home to more than 8000 companies. Features • Excellent support from Dubai Ports Authority’s two modern terminals. • On-site chamber of commerce, international banks, insurance companies, consultancies, etc. • Mortgaging of company-owned facilities (excluding leased land). • Lease period up to 50 years. • Types of activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage, services, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. Facility costs and type of license Facility Size* Land Min. 5,000 sq.mtr Pre-built factory & warehouse 313 - 1000 sq.mtr with office space Office 27 sq.mtr -100 sq.mtr FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Branch Registration fee one time AED 5,000 Cost in AED per annum* 30 - 80 per sq.mtr 120,000 - 220,000 1,800 - 2,200 per sq. mtr 22 PKF - Free Zones in the UAE - Free Zones in Dubai Type of Licenses Industrial Trading General Trading Logistics (branch of UAE based company) Service (branch of UAE based company) Cost in AED per annum* 5,500 - 9,000 5,500 - 12,500 30,000 30,000 8,000 * These figures are indicative and subject to change DUBAI CARS AND AUTOMOTIVE ZONE (DUCAMZ) DUCAMZ was established with the objective of re-exporting used cars to the Asian and African Region where the demand exists and continues to grow. This zone is situated within the Dubai city and comprises of one million square meters of bonded area. The location has easy access to all airports and seaports in the region. From here the automobiles are reloaded onto feeder vessels, or on to trucks which travel throughout the region on a modern network of highways, linking the neighbouring countries to the Middle East and beyond. This area is used for the purpose of the re-export of cars. The vehicles are categorized into two groups, left-hand drive vehicles which are exported into the local markets and are subject to local regulations and right hand drive vehicles which are mainly exported to India, Afghanistan, Pakistan, Yemen and other African Countries. Features • Government support services. • Competitive freight charges. • Ease of administration problems. • No restrictions on import of automobiles. • No import duties. • Hassle free clearance from Police (traffic department), Customs, Port and Banks. • Excellent support systems. • The facilities could be leased for 50 years. • Type of company activities would include trading in cars only. PKF - Free Zones in the UAE - Free Zones in Dubai 23 Types of registration • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 100,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 100,000. Facility costs and type of license Only showroom with 10 sq.mtr office is available Registration Fee one time (FZCO) AED 20,000 Registration Fee one time (FZE) AED 15,000 Registration Fee one time (Branch) AED 10,000 Type of License Trading Cost in AED per annum 12,000 * These figures are indicative and subject to change GOLD & DIAMOND PARK (GDP) GDP is a center for gold and diamond manufacturers, traders and retailers. The center receives special requests from customers for custom made jewellery and other mementos. GDP is owned by EMAAR and through a long term agreement with Jebel Ali Free Zone provided with Free Zone facilities. The park has full Free Zone facilities including 100% foreign ownership. GDP is a competitive place to shop and an enviable location for retailers and manufacturers. Features • Government support services. • Retail shopping facility for visitors. • 24 hrs security services. • Chiller systems free of cost. • Worker accommodation (subject to availability) 24 PKF - Free Zones in the UAE - Free Zones in Dubai • The facilities could be leased for 15 years. • Central gas distribution system • Type of company activities include gold and diamond trading, designing, manufacturing and crafting of gold and diamond jewellery, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital AED 100,000. Facility, costs and type of license Facility Size Cost in AED per annum Retail outlets No space restriction As per free zone discretion Pre-built manufacturing/office units 310 sq.ft -1200 sq.ft 100 - 200 per sq.ft approx Registration Fee - None Type of License Manufacturing Trading Cost in AED per annum 5,500 5,500 * These figures are indicative and subject to change TECHNOPARK (TP) TechnoPark (TP) is a fully owned subsidiary of Economic Zones World; which is a part of the government owned organisation that developed the Jebel Ali Free Zone and internationally renowned DP World. It was established according to Law No. 1 of 2003 issued by H.H. the Ruler’s Court and is the leading local economic zone in the Middle Eastern Region. TP is a knowledge-based technology-centric sustainable business hub, which not only supports the country’s research and development needs in its core sectors but also supports the nation’s long term economic development and growth. TP is about 3 miles from the Jebel Ali Airport and offers high tech industries, with special attention to Desalination, Oil and Gas, a chance to establish themselves in a state-of-the-art facility. PKF - Free Zones in the UAE - Free Zones in Dubai 25 TP is focused on Research, Development and Studies in the field of the country’s core economic sectors viz Energy including Oil and Gas, Desalination and Water Resource Management, Environmental Resource Management and hi- technology driven knowledge based industrial development. The Park’s R & D initiatives focus on nurturing business ideas or new technologies in respective areas and are also directed at improving the existing technologies in the country’s core economic sectors to enhance their production efficiencies. TechnoPark is the official UAE and Middle Eastern representative of the IASP (International Association of Science Parks) and a member of the IDA (International Desalination Association). TechnoPark joins inventors with investors and encourages new ideas to be developed to further increase the awareness and commitment of the UAE in areas such as Oil, Solar Energy and Water reuse. TP actually followed the local rules and regulations of the Emirate of Dubai and is consequently involved with and related to various concerned authorities and departments through a one stop shop (OSS) concept. However, TP also allows branches of Free Zone Establishment (FZE) or Free Zone Companies (FZCO) to be established in the park, thus the branch of the FZE or FZCO can enjoy the benefits of being a 100% foreign owned company. Features • 100% foreign ownership. • The freedom to repatriate both capital and profits. • Abundant inexpensive energy supply. • Efficient transport and distribution facilities. • TP is different from other Free Zones as it provides the best of both worlds ie TP is a local economic zone with additional privileges similar to those of the Free Zones. Types of registration • Limited Liability Company (commercial/ industrial) (100% foreign ownership available for JAFZ license holders) • Branch of a Free Zone Establishment (FZE) • Branch of a Free Zone Company (FZCO) • Branch of a local and Foreign Company 26 PKF - Free Zones in the UAE - Free Zones in Dubai Facility costs and type of license Facility Size Office 100 sq. mtr Land 10,000 sq. mtr DWC LLC Registration Fee one time AED 10,000 Type of License Trading Service Industrial Cost in AED per annum 1500 per sq.mtr 35 per sq.mtr Cost in AED per annum 5,500 5,500 5,500 * These figures are indicative and subject to change DUBAI INTERNET CITY (DIC) - TECOM The Dubai Internet City (DIC) is a part of the Dubai Technology and Media Free Zone. It was formed under Law No. 1 of 2000 of the Emirate of Dubai. The DIC provides a knowledge-economy ecosystem that is designed to support the development of Information and Communications Technology (ICT) companies. It is the Middle East’s biggest IT infrastructure built inside a Free Trade Zone. The DIC is fully supported by the Government of Dubai and has established Free Zone specific corporate laws that empower the companies in the community and help them grow. Within a short span of time many global ICT companies have established themselves in the Dubai Internet City. The Dubai Internet City is a strategic base for companies targeting emerging markets in a vast region extending from the Middle East to the Indian subcontinent and Africa to the CIS countries, covering 1.6 billion people. Features • State-of-the-art technology. • World class technical infrastructure (high bandwidth, low telecom cost, high speed support infrastructure etc) built by CISCO, SUN MICROSYSTEMS, SIEMENS. PKF - Free Zones in the UAE - Free Zones in Dubai 27 • State-of-the-art urban infrastructure (cost competitive, flexible office space, etc). • Largest commercial internet protocol telephony system in the world. • Stringent cyber regulations. • Rich network that companies can tap for resources, partnerships and ideas. • Easy and fast company registration and licensing procedures. • Lease up to 20 years. • Type of company activities include Software Development, Business Services, Web Based and e-Commerce, Consultancy, Education and Training, Sales and Marketing and Back Office Operations, etc. Types of registration • As a branch of a foreign company -no minimum capital required • As a branch of a UAE company-no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - Minimum share capital is AED 50,000 and the maximum depends on the authorities after review of the business plan. Facility costs and type of license Facility Size Office Min. 100 sq.mtr Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Service Cost in AED per annum 1500 per sq.mtr Cost in AED per annum 15,000 * These figures are indicative and subject to change. DUBAI MEDIA CITY (DMC) - TECOM The Dubai Media City (DMC) is a part of the Dubai Technology and Media Free Zone. It was formed under Law No. 1 of 2000 of the Emirates of Dubai. The Dubai Media City is rapidly emerging as a global media hub. The City provides an advanced infrastructure 28 PKF - Free Zones in the UAE - Free Zones in Dubai and supportive environment for media-related businesses to operate globally out of Dubai. The DMC is fully supported by the Government of Dubai and has established Free Zone specific corporate laws that empower the companies in the community and help them grow. The facility offers an environment that allows companies and individuals to operate with collective synergy and freedom. The Dubai Media City emphasizes “The Freedom to Create”. The DMC brings to the media community an advanced infrastructure based upon a global interconnected network, linked by satellites, computers, internet, television, radio, journalism, cinema and film production. The City is already home to many international companies including global giants such as CNN, Reuters, Sony Broadcast & Professional, McGraw Hill Publishing, Bertelsmann, and MBC, along with regional companies and new start-ups. Features • The most advanced scalable IT network. • Satellite Uplink / Downlink facilities. • Post production studios and facilities. • Shared Business Centers. • Customer Care Center (provides all technical and support service). • Special facilities for professional freelancers. • 50 year lease contract for land and building. • Type of company activities include broadcast services, music, video/audio publishing, production and post-production, advertising agencies, studios, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - Minimum share capital is AED 50,000 and the maximum depends on the authorities after review of the business plan. PKF - Free Zones in the UAE - Free Zones in Dubai 29 Facility costs and type of license Facility Size Office 500 sq.ft onwards Business Centre Varies Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Broadcasting company Publishing Above the line (one activity) Below the line (one activity) Other Commercial Freelancer Segment (one activity) Cost in AED per annum 160 per sq.ft 350 - 450 per sq.ft Cost in AED per annum 25,000 - 40,000 20,000 20,000 15,000 15,000 7,000 * These figures are indicative and subject to change. DUBAI STUDIO CITY (DSC) - TECOM Dubai Studio City (DCS) is a Free Zone dedicated to facilitate the creation and development of an environment and world-class infrastructure to foster the growth of the television, film and music industries in the region. DSC is also a part of the Dubai Technology and Media Free Zone. Designed to accelerate the growth of the broadcast, film, television and music production industries, Dubai Studio City (DSC) is an ultra-modern facility integrating every component of content production & broadcast under one roof. Spread across 22 million square feet, it includes production, post-production, broadcast, equipment rental, freelancers, commercial offices, business centre and satellite facilities among others. It also has residential areas, hotels, an entertainment centre, film schools and training institutes. This unique combination of world-class infrastructure, qualified professionals and unique networking environment makes it the ideal location for creative people to unleash their imagination. DSC offers an industry cluster environment with excellent 30 PKF - Free Zones in the UAE - Free Zones in Dubai networking opportunities. With all the elements of the film entertainment industry under one roof, support services such as marketing and ancillary services are also available, making Dubai Studio City an ideal destination for the audio-visual industry. Over the past few years, the audio-visual industry has witnessed a revolutionary change. With the rapid increase in the number of TV channels, the fastest-growing media industry today is TV Content Production and Distribution. Technically advanced animation films are gaining popularity, as digital portable devices reinvent the music industry. In such a pulsating scenario, it makes sound business sense to invest in a cost-competitive development like Dubai Studio City which has the potential to make history. Dubai Studio City attracts investors from the production and broadcast industries. Companies providing support services like animation, dubbing, make-up, costume design, casting, talent agencies are also invited to be a part of Dubai Studio City. Film schools and universities offering accredited programs, as well as film workshops and short courses are made available at Dubai Studio City. The institutes and education centres help identify and groom future talent for the industry. Features • Industry Cluster Environment • Advanced and scalable Telecoms and Broadband • Networking Opportunities • Tap into the creative and innovative energy in the zone for new ideas • Excellent networking opportunities in the Media Hub • Commercial, residential, educational and recreational facilities • Type of company activities include TV and radio broadcasting, broadcast management, film entertainment, film production / post production, sound production, various production services, music & entertainment etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital is AED 100,000. PKF - Free Zones in the UAE - Free Zones in Dubai 31 Facility costs and type of license Facility Size Commercial 500 sq.ft Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (branch) AED 3,500 Type of License TV & Radio station (terrestrial /satellite) TV & Radio network (terrestrial /satellite) Broadcast Management Cost in AED per annum 90 per sq.ft Cost in AED per annum 25,000 40,000 15,000 * These figures are indicative and subject to change. INTERNATIONAL MEDIA PRODUCTION ZONE (IMPZ) - TECOM The International Media Production Zone (IMPZ), the first dedicated trade zone created in the region for media-related production activities. The new initiative is a part of Dubai Technology and Media Free Zone and His Highness Sheikh Mohammed’s vision to develop Dubai into a media hub, provides a highly pro-business environment and a complete technology and community infrastructure to support and foster the growth of media production. Dubai’s International Media Production Zone (IMPZ) is a unique cluster environment for media production companies from across the industry value chain and from across the world, to interact and collaborate effectively. IMPZ caters to those engaging in Graphic Art, Publishing and Packaging. Companies joining IMPZ can avail of 100 per cent ownership. Exempt from almost all corporate taxes and personal taxes including those for machinery, equipment, raw materials and spares utilized by the industry. Co-existing at a single location will enable print companies to coordinate production activities efficiently with feeder companies like machinery and equipment providers and suppliers of raw materials and spares. For small and medium-sized businesses, the time and costs involved in sourcing requirements will be considerably reduced, as they can avail of several shared services. 32 PKF - Free Zones in the UAE - Free Zones in Dubai Superior infrastructure for various activities, available as leasehold land and distinct units for printing, production and warehousing. Printing companies also have the option of taking multiple units or having a combination of both land and production units. IMPZ deploys and promotes eco-friendly industrial environments, where tested concepts and practices are adopted to recycle waste and enable companies to utilize each others’ by-products instead of disposing them as waste. Renewable energy sources are included in the site’s infrastructure to guarantee reliable and clean power. The following clusters are allowed in IMPZ like Printing and Manufacturing Machinery, Printing Press, Packaging, Publishing, New Media like Digital and Interactive Game Development, Media Services and Storage. Features • State-of-the-art communications. • High-quality thermally-insulated production units. • Complete facility for production operations. • The land could be leased for 30 years. • Type of company activities would include pre-press, printing, post-press, distribution services, logistics services, support service providers, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - share capital is dependent on the business activity and varies from AED 50,000 to AED 500,000. Facility costs and type of licenses Facility Size Office space 500 sq.ft Production/Warehouse units Varies with attached offices Land Varies Registration Fee (one time) AED 3,500 Cost in AED per annum 100 – 250 per sq.ft PKF - Free Zones in the UAE - Free Zones in Dubai 33 Type of License General Segments Publishing Cost in AED per annum 15,000 20,000 * These figures are indicative and subject to change. DUBAI KNOWLEDGE VILLAGE (DKV) - TECOM Knowledge Village was formed under Law No. 1 of 2000 of the Emirate of Dubai. DKV is set up to position the Dubai Technology and Media Free Zone as a center of excellence for learning and innovation. This new education and training hub is also set up to complement the Free Zone’s other two clusters: Dubai Internet City as IT hub and Dubai Media City as Media hub. DKV is a vibrant, connected learning community that will develop the region’s talent pool and accelerate its move to the knowledge economy. Knowledge Village will provide the infrastructure for developing, sharing and applying knowledge. In addition, KV will facilitate, promote, and become the flagship for e-Learning throughout the region. Features • Government support services. • Conference centers. • Dormitory. • Multimedia library and other common facilities. • The facilities could be leased for 50 years. • Type of company activities include IT and Media Corporate Schools, Executive Education Centre, HR Development Centre, Professional Training Centers, Vocational Training Centers, Assessment Centre, Testing Centre, Linguistic Institute, Innovation Centre, Academic Service Provider, School, e-Learning Provider, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital is AED 50,000. 34 PKF - Free Zones in the UAE - Free Zones in Dubai Facility costs and type of licenses Facility Size Open offices (furnished) 91-100 sq.ft Closed office / Exec temp Offices Varies Commercial office (unfurnished) No space limit Retail Office Various sizes Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License University Segment School Segment Boarding School General Segment Freelancer Cost in AED per annum 120 pr sq.ft (upto 6 months) 32,000 - 35,000 (upto 6 months) 200 sq.ft 200 sq.ft onwards Cost in AED per annum 50,000 - 100,000 300,000 100,000 15,000 7,500 * These figures are indicative and subject to change. DUBAI INTERNATIONAL ACADEMIC CITY (DIAC) - TECOM Dubai Knowledge Village (DKV) launched Dubai International Academic City (DIAC), the World’s only Free Zone dedicated to international higher education. Located in Dubai Academic City, DIAC serves as the regional base for premier international higher education institutions. Spread across an area of 25 million square feet, the DIAC campus provides an intellectually inspiring environment for students and faculty. Dubai Academic City already houses seven universities. DIAC only houses international universities separating them from other public colleges and institutions in the area. This thriving knowledge community was founded as part of a long-term economic strategy to develop the region’s talent pool, to accelerate its move into a knowledge economy. Benefits for DIAC investors include 100% foreign ownership, 100% tax free, 100% repatriation of profits. There are currently many international universities of higher learning from diverse regions including Australia, India, Pakistan, Iran, Russia, Belgium, PKF - Free Zones in the UAE - Free Zones in Dubai 35 UK and Ireland operating out of DIAC, however the authority expects to further house 25 international universities to cater to more than 30,000 students in the future. These institutions offer programs that range in duration from one year to four years. Major academic programs on offer include engineering, computer science, fashion and design, biotechnology, environmental studies, quality management and business management programs. The selection of international universities depends on a number of criteria including university ranking, strength and programmes that correspond to the UAE’s industry needs. DIAC is spread across an area of 25 million square feet. There are areas dedicated to the international education zone, research and development centres, sports facilities, student unions and student and faculty accommodations. However currently there is no mandate for the international universities based in DKV to move to the DIAC. The set-up in DKV is not as appropriate for the universities that need to expand as DKV will focus more on house training and human resources companies. At DIAC universities have the option of either building their own campus or moving into the ready-made buildings. Features • Government support services. • Wellness centres, dining facilities and entertainment venues including movie theatres, gaming centres etc. • Student Accommodation • Sports centres • Multimedia library and other common facilities. • Type of company activities include Universities, colleges, sports facility management, library management, accommodation service provider, academic support services, etc. Types of registration As a branch of a foreign company - no minimum capital required. As a branch of a UAE company - no minimum capital required. As a Free Zone Limited Liability Company (FZ-LLC) - minimum share capital varies 36 PKF - Free Zones in the UAE - Free Zones in Dubai and depends on the authorities after review of the business plan. Facility costs and type of licenses Facility Size Cost in AED per annum Offices 18,000 - 20,000 sq.ft 200 per sq.ft Land 250,000 sq.ft onwards 20-30 per sq.ft Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License University segment Branch University segment Cost in AED per annum 50,000 - 100,000 15,000 - 100,000 * These figures are indicative and subject to change. DUBAI OUTSOURCE ZONE (DOZ) - TECOM Dubai Outsource Zone is the World’s first Free Zone dedicated to the outsourcing industry. Dubai Outsource Zone (DOZ) provides a comprehensive infrastructure and environment for outsourcing companies to set up global or regional hubs servicing the worldwide market. DOZ is yet another initiative of Dubai Technology and Media Free Zone. Dubai Outsource Zone is an initiative of Dubai Internet City, the state-of-the-art global hub within Dubai. It is the perfect base for companies that provide mid- to high-end IT and business processes outsourcing (BPO) services. Some of the key sectors covered are finance, accounting, IT, payroll processing, graphic design, engineering, biotech, R&D and design. It also serves as a centre for disaster recovery facilities for call centres located offshore elsewhere in the world. The Zone caters to offshore requirements from Europe, USA, the Middle East, Asia and Africa. DOZ provides a custom made infrastructure to enable outsourcing companies to set up efficient operations as well as support their development. The package of telecom services include reliable and redundant high-bandwidth connectivity, IP telephony, automatic call distribution (ACD), interactive voice response (IVR) and predictive PKF - Free Zones in the UAE - Free Zones in Dubai 37 dialing systems, satellite communication services as well as technical and infrastructure support. These facilities form part of a plug-and-play infrastructure which helps offshore service providers start operations quickly with minimal upfront investment. Features • 100 percent exemption from taxes • 100 percent repatriation of capital and profits • Host of support Services to eliminate problems faced by outsourcing companies and to reduce operational hassles for outsourcing service providers. They include Speedy Incorporation and Trade Licensing, Hospitality Services and Event Management Services, etc. • Facilities to plug-and-play infrastructure which helps offshore service providers to start operations with minimal upfront investment. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital AED 300,000. Facility costs and type of license Facility Size Offices Varies Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License General Segments Cost in AED per annum 110 per sq.ft Cost in AED per annum 15,000 * These figures are indicative and subject to change. 38 PKF - Free Zones in the UAE - Free Zones in Dubai ENERGY AND ENVIRONMENT PARK (Enpark) - TECOM Energy and Environment Park (Enpark) is an initiative of Dubai Technology and Media Free Zone. Enpark is a Free Zone spanning over 8 million square feet of office, research centre, residential, educational and leisure facilities located next to the Dubai Police School, United Arab Emirates. Phase I of the ENPARK project was completed in 2010. Enpark is a special destination for clean energy and environmental technology companies to operate and a fully-integrated knowledge community that includes programs, services, partnerships and amenities to support the success of environment companies and their employees. Combining the unique assets of being at the heart of the international hub for the Region with the exclusive experience of a sustainable community, ENPARK offers a world class sustainable lifestyle and builds a sustainable culture. The park creates a comprehensive eco-friendly community while ensuring a high level of welfare and quality of living for residents and workers. ENPARK works with leading energy and environment companies to ensure best practices and policies are implemented in every element in the design and construction of the park. ENPARK has renewable and efficient water utilities, as well as clean and efficient transportation facilities as part of its infrastructure. Intelligent building systems, including energy management control, renewable energy production monitoring, fire alarm monitoring and security systems, are a feature of the park. The park also emphasizes on Clean Vehicle technologies (retrofit/showcases), circulation within the zone is dedicated to green cars certification standards, fully pedestrian friendly area, renewable and efficient utilities: water conservation and reclamation, gas/hydrogen infrastructure. Efficient power, water and cooling infrastructure augmented by renewable energy as well as advanced waste processing and recycling. Fully Green Buildings park featuring state-of-the-art telecommunication infrastructure for this self-contained and self-sustaining community. PKF - Free Zones in the UAE - Free Zones in Dubai 39 Features • 100% tax free • 100% foreign ownership • No corporate tax • No income tax for 50 years • No custom duty • Full currency convertibility • Hassle-free company laws and legal framework Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital is AED 300,000. Facility costs and type of license Facility Size Land Varies Executive Office 100 sq.ft Serviced Office Varies Laboratory Varies Warehouse Varies Registration Fee one time (FZ-LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Varies Cost in AED per annum Varies 120 - 180 per sq.ft 25,000 - 85,000 160 per sq.ft 60 per sq.ft Cost in AED per annum 15,000 * These figures are indicative and subject to change. 40 PKF - Free Zones in the UAE - Free Zones in Dubai DUBAI BIOTECHNOLOGY AND RESEARCH PARK (DuBiotech) - TECOM DuBiotech is the World’s first Free Zone dedicated to the biotechnology industry and is a part of Dubai Technology and Media Free Zone. DuBiotech creates a comprehensive infrastructure and environment to develop biotechnology in the region. The park is built in several phases on a 300 hectare area located close to the Dubailand project. This zone serves knowledge that benefits both the society and the economy and is an ideal platform for the regional and international scientific community to interact closely. Discoveries and inventions can be patented through the Industrial Property Directorate (the UAE equivalent of the Patent Office), at the Ministry of Finance and Industry. The applications are then examined and following approval, a UAE patent is granted. Innovators also have the option of applying through the GCC patent office in Saudi Arabia, which provides GCC-wide protection. Additionally, the UAE is party to the Patent Cooperation Treaty (PCT). This allows for a centralised application system where any PCT member state can designate any other PCT member state for patent filing. This is an easy and cost effective way of protecting a patent internationally. Intellectual Property (IP) rights are recognised in the UAE and therefore strict enforcement will exist for DuBiotech based companies. DuBiotech supports companies registering Intellectual Property rights and expedites processing and registering these rights. Small and medium enterprises and large biotechnology and pharmaceutical companies, R&D laboratories, biotechnology related educational and academic institutions, suppliers, manufacturing, incubators and other associated sectors are encouraged to establish operations at DuBiotech. The UAE Ministry of Health oversees the approval of medical drugs and products for use within the UAE. DuBiotech, through its MOU, regulations and close collaboration with the UAE Ministry of Health, assists DuBiotech based companies to successfully launch drugs in national and regional markets. Any drugs that are exported to the US or Europe have to be approved by the FDA and EMEA respectively. DuBiotech understands that clinical trial regulations are needed in the region and these are currently under development. PKF - Free Zones in the UAE - Free Zones in Dubai 41 Stem cell research will be conducted in a regulated environment conforming to international standards. DuBiotech is an incubator for researchers and scientists and a centre for production, creativity and development. In order to achieve that, the authorities ensure a suitable environment and the basic infrastructure attracts the best scientists, research centers and biotechnology laboratories. BioTiqania Advanced Training Institute was founded as a spin-off initiative of Dubai Biotechnology and Research Park (DuBiotech). BioTiqania is committed to providing a high standard of innovative technical training in various scientific and industrial fields. The park comprises of two main initiatives - an industry cluster and the Foundation for Research and Innovation (FRI). As part of developing a cluster, DuBiotech attracts a synergistic mix of biotechnology and pharmaceutical companies active in discovery, R&D, testing, production, storage, sales and distribution. It also attracts companies offering business support services for this industry such as legal and venture capital (VC) firms specializing in the biotech industry, educational and training institutions focused on biotech, and equipment, materials and consumables suppliers. The main license categories are Therapeutics, Diagnostics and Analysis, Agricultural, Forestry and Horticulture, Environment, Specialty supplies, Equipment, Life Science consultancy and Life Science and Biomedical Associations, etc. Features • State-of-the-art infrastructure • Special areas have been set aside for companies who wish to construct their own buildings • Dedicated production, warehousing and distribution areas will be created. • Laboratory space • Common facilities include a library, video-conferencing, auditorium, theatre, meeting rooms, etc • 24/7 electrical power back up • Waste management and effluent treatment including the disposal of chemical, biological and hazardous materials 42 PKF - Free Zones in the UAE - Free Zones in Dubai Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Limited Liability Company (FZ LLC) - minimum share capital varies depending on the authorities after review of the business plan. Facility costs and type of license Facility Size Land (lease hold only) Min 38,000 sq.ft onwards Executive Office Varies Pre-Built Units Varies Laboratory Space Varies Registration Fee one time (FZ LLC) AED 3,500 Registration Fee one time (Branch) AED 3,500 Type of License Production Manufacturing Others Cost in AED per annum Varies 450/ sq.ft Varies Varies Cost in AED per annum 25,000 25,000 15,000 * These figures are indicative and subject to change. DUBAI MULTI COMMODITIES CENTRE (DMCC) The Dubai Multi Commodities Centre (DMCC) has been created as a strategic goal of the Dubai Government to establish a commodity market place in Dubai. The DMCC was launched on April 24th 2002 by a decree from the Government of Dubai. The DMCC offers a unique opportunity for participants in a wide range of metals and commodities industries. It provides facilities that bring together the gold trade, the diamond trade (housing a Diamond Exchange), and trading in other selected commodities. The Centre aims to attract key players throughout the entire value chain of each of these industry sectors, together with relevant support industries such as finance, logistics and insurance. PKF - Free Zones in the UAE - Free Zones in Dubai 43 The DMCC offers ownership of business premises in addition to all other standard Free Zone services. DMCC’s facilities will include a commercial tower, refineries and manufacturing complex, with close proximity to Jebel Ali Port. Plots of land have also been allocated for the larger manufacturing units and refineries. DMCC’s activities are organised into three main areas which are Gold and Precious Metals, Diamond and Colored Stones and Commodities. DMCC has strengthened Dubai’s position as the leading regional centre for bullion business by offering improved facilities to enterprises establishing themselves under the Centre’s auspices. The infrastructure at DMCC accommodates every facet of the business - manufacturing, trade, education, certification and technology. Alliances with other players in the trade such as finance organizations, government institutions, etc. will promote complete growth of the industry. To further boost the regional diamond trade, the official announcement was made on the Dubai Diamond Exchange (DDE), which is the first WFDB (World Federation of Diamond Bourses) affiliated bourse in the Arab World. DMCC has also entered into a joint venture between MCX (Multi Commodity Exchange of India and FTIL (Financial Technologies India Ltd) and has formed the Dubai Gold and commodities exchange (DGCX). DGCX provides advanced electronic infrastructure and an organized monitored environment. DMCC also aims bringing the best of educational institutions to Dubai, to make the latest in technology and processes available to the local and regional market. DMCC has been instrumental in implementing the Kimberley Process in the United Arab Emirates as part of its endeavor to streamline the trade with global standards and protecting the legitimate diamond industry. Features • Trading in various commodities including gold and precious metals, diamonds and colored stones and various services that compliment the main core business. • Free hold ownership of business premises. • Diamond exchange. • 50 years tax holiday. 44 PKF - Free Zones in the UAE - Free Zones in Dubai Types of registration • As a branch of a foreign company - no minimum capital required. • As a Free Zone Company (DMCCO) - minimum share capital is AED 50,000 (per shareholder). Facility costs and type of license Facility Size Serviced desk space Varies Serviced office space Varies Office (Shell & Core) Freehold properties sale Registration fee (one time) - AED 5,010 Cost in AED per annum 22,000 40,000 - 60,000 30 - 100 sq.ft/per annum 450 - 700 sq.ft Type of License Manufacturing (depends on the units or area leased) Cost in AED per annum 8,000 - 25,000 Trading Service 15,010 15,010 * These figures are indicative and subject to change. JUMEIRAH LAKES TOWERS (JLT) Jumeirah Lakes Towers (JLT) is a dynamic waterfront community and is one of the designated areas within the Dubai Multi Commodities Centre (DMCC). The DMCC Authority (DMCCA) is the licensing authority for businesses operating in the Jumeirah Lakes Towers. Businesses in JLT therefore, benefit from a Free Zone status, making JLT the first mixed-use Free Zone Freehold development in Dubai. JLT has attractive residential and office towers alongside hotels, leisure and retail outlets. Out of the 79 towers, 3 towers will be developed by the Dubai Multi Commodities Centre. These are the Almas, Au and Ag Towers. The landmark Almas Tower is the natural focal point of the development, situated on an island surrounded by PKF - Free Zones in the UAE - Free Zones in Dubai 45 water in the centre of the community. The tower houses the Dubai Diamond Exchange and Dubai Multi Commodities Centre (DMCC) member businesses in the gold, diamond, energy and commodities industries. JLT is situated adjacent to Sheikh Zayed Road, between Interchanges 5 and 6. A total of 79 towers stand tall in this prestigious project making it one of Dubai’s most recognised addresses, where property investors are given the opportunity to own and develop towers on a freehold basis. The DMCCA offers investors 100% foreign ownership of businesses established in JLT. A separate set of DMCCA operating regulations governs Core Companies in DMCC as compared to Non-Core Companies in JLT. Non-Core Companies are entities established in the JLT and licensed pursuant to the operating regulations that do not trade in commodities or other activities that are licensed through DMCC. A licensee must hold either a valid JLT office lease or be the registered owner of freehold office space within the JLT and must also hold a valid license issued by the DMCCA in order to operate in the JLT. Licensees are required to renew their licenses (and leases, if applicable) within the time frame set by the concerned DMCCA. DMCCA issues the following licenses to Non -Core companies by the nature of the activity: • Trading license: To carry out any permitted trading activity. • Service license: To carry out any permitted service activity. • Professional license: To carry out any permitted professional activity as per an existing Dubai license from the concerned authority. Companies are strictly forbidden from carrying out activities other than those appearing on their license. Companies violating this rule may be fined as per the operating regulations. Licensees in JLT cannot under any circumstances legally operate outside the designated area. In JLT the following categories will not be licensed: • Licenses to Core companies of DMCC 46 PKF - Free Zones in the UAE - Free Zones in Dubai • New licenses to “manufacture garments” • General Trading license Types of registration • As a branch of a foreign company - no minimum capital required. • As a Jumeirah Lake Tower entity (JLT) - minimum share capital is AED 300,000 • Minimum share capital for General Trading license is AED 1 Million Facility costs and type of license Facility Size Office Space flexible Service desk space Varies Service office space Varies Registration fee (one time) AED 10,010 Type of License Trading/service General Trading Cost in AED per annum Fixed by individual developers 22,000 22,000 Cost in AED per annum 20,010 50,010 * These figures are indicative and subject to change. DUBAI FLOWER CITY [DFC] Strategically located within the boundaries of Dubai International Airport, Dubai Flower Centre (DFC) is a new hub of growth for the floriculture industry in the 21st century. With the explosive growth in global trade of flowers and perishables, there is an increasing demand for innovative logistics and commercial solutions to enable the industry to reduce transit times, improve quality and grow profits. To add value to the chain, DFC will operate as a Free Zone, where international traders, logistic companies and service providers can establish operations in an “offshore” environment. More than just a logistics hub, the Dubai Flower Centre will also offer the floriculture industry a commercial base. Through the DFC Free Zone, exporters, importers and wholesalers can establish trading companies to transact business in a PKF - Free Zones in the UAE - Free Zones in Dubai 47 tax, duty and exchange-control-free environment. To support the development of trade links, DFC will also provide a range of commercial and technical services to companies shipping through, or operating within, the facility. Features • World class logistics hub. • Increased capacity and connections to and from major global trading points. • Provides cost effective, high quality point of import and distribution. • Range of innovative technology. • The world’s best cool chain management. • Resources and facilities to enable cost effective value addition. • Facilities and support to enable efficient commercial transactions. • Rapid consolidation and trans-shipment facilities. • Specialized perishables handling team. • Flower treatment facilities. • Type of company activities would include import consolidation, re-export, wholesale/ trading, grower, other value added services, technical service providers, re-packaging, bouquet making/bunching/assembling and logistics service providers. Types of registration • As a branch of a foreign company - no minimum capital required • As a branch of a UAE company - no minimum capital required • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000 Facility, costs and type of licenses Facility Size Office Suites Varies General Lease Office Varies Business Center Offices Per desk unit basis Warehouse Min 350 - 800 sq.mts Registration Fee - yet to be finalized Cost in AED per annum 130 - 186 per sq.ft (approx) 82 per sq.ft (approx.) Prices vary depending on usage Varies 48 PKF - Free Zones in the UAE - Free Zones in Dubai Type of License Trading Service Industrial Cost in AED per annum 10,000 10,000 10,000 * These figures are indicative and subject to change. DUBAI AIRPORT FREE ZONE (DAFZ) Dubai Airport Free Zone (DAFZ) was established under Law No.2 of 1996 and its amendment No.2 of 2000. It is wholly owned by the Government of Dubai. DAFZA is the only airport-oriented Free Zone in Dubai, and it’s located within the boundary of Dubai International Airport. DAFZA is an ideal location for high-tech/IT products, luxury items, jewellery, light industry and activities related to the aviation industry. Features • Located within the boundaries of Dubai International Airport. • Fast and efficient cargo clearance services (8-24 hours). • International Freight Forwarders and Logistics companies at DAFZ. • Online customer service (e-Services). • Land with easy access to airport apron. • Type of activities include manufacturing, processing, assembling, packaging, import / export, distribution, storage, services, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZC) - minimum share capital is AED 500,000. • Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000. PKF - Free Zones in the UAE - Free Zones in Dubai 49 Facility costs and type of license Facility Size Land Min. 2,500 sq.mtr Light industrial units 350 sq.mtr (pre-built units) Office Min. 50 sq.mtr # Business Enabled Office 25 sq.mtr FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Industrial Trading Service Cost in AED per annum 300 per sq.mtr 800 per sq.mtr 1,800 - 2,200 per sq.mtr from AED 6,000 per month Cost in AED per annum 10,000 10,000 10,000 * These figures are indicative and subject to change. # DAFZ has recently launched ‘Business Enabled Office’. This package includes a 25 sqm fully operational standard office and all start up expenses, such as licensing, registration and employment visas, all for an inclusive monthly rent starting from AED 6,000. The standard 25 sqm ‘Business Enabled Office’ includes: Wallpaper, flooring, false ceiling, lighting, blinds, air-conditioning, standard floor boxes, office signage; Telephone, fax and internet line; Electricity; Furniture; License and Registration; Commercial services (2 employment visas); Housekeeping services. DUBAI HEALTH CARE CITY (DHCC) The Dubai Healthcare City (DHCC) is formed under Decree No. 1 of 2003. DHCC initiative is to provide the highest quality of healthcare services to medical care and wellness seekers from the region (comprised of the GCC, Indian Subcontinent, Northern Gulf, Central Asia, the Levant, North and East Africa) by creating a world-class cluster of healthcare professionals and service providers in the heart of Dubai. 50 PKF - Free Zones in the UAE - Free Zones in Dubai DHCC provides excellent medical care services in selected disciplines that are relevant to the health problems faced by patients in the region. The ‘core’ of the healthcare cluster economy is a University Medical Complex; consisting of a University Specialty Hospital, a Post-Graduate Medical School and Nursing School, and a Life Science Research Center. The combination of these 3 components has enabled Dubai to leapfrog to the forefront of regional medical practices, establishing a position of regional leadership through leading edge education and research, and thereby becoming a center of excellence in global healthcare. DHCC is a welcoming gateway for patients coming from abroad, visiting doctors, conference participants, post-graduate interns and staff members. DHCC caters to both the medical and the wellness clusters. The Wellness Cluster is a collection of independent businesses that are designed with the long-term health and wellness of the patient or customer in mind. The holistic approach focuses on a customer’s well being and enhancing the quality of life. Features • Low operating costs. • State-of-the-art medical facilities. • Integrated healthcare community. • Specialized first class medical care. • Holistic centers, healthcare malls and other support services. • The facilities could be leased or on free hold basis. • The types of activities allowed in DHCC are wellness centers, nutrition centers, rehabilitation centers, health resorts and spa, health farm, research centers, pharmaceutical companies, private hospital and clinics, nursing school, science specialists, university complexes, tele-health and e-enabled services, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZ LLC) - share capital varies, depending on the type of project. Clinical - minimum AED.300,000 Non Clinical - minimum AED.100,000 Hospitals - To be advised by the authority PKF - Free Zones in the UAE - Free Zones in Dubai 51 Facility costs and type of license Facility Size Offices / Clinics Suites Varies Retail Unit Varies Land Varies Registration Fee FZ-LLC AED 3,500 Type of License Commercial License Hospitals Professional License Cost in AED per annum 30 - 250 per sq.ft 275 - 400 per sq.ft (approx) Varies Cost in AED per annum 20,000 40,000 - 50,000 Varies * These figures are indicative and subject to change. DUBAI SILICON OASIS (DSO) Dubai Silicon Oasis is an exciting global collaborative initiative, combining decisive forces that shaped the semiconductor industry under the leadership of Dubai Airport Free Zone Authority. A combination of forces that triggered off a paradigm shift in the worldwide semiconductor industry, to new locations, whilst establishing Dubai as a key centre of future developments in semiconductors. The Dubai Silicon Oasis is spread across 6.5 million square meters and is the first and only purpose-built industrial park for the semiconductor industry and represents businesses across the semiconductor value-chain. Spread across 6.5 million square meters, DSO provides: • Developed land for customized buildings. • Ready-built space (with power, water, telecom, datacom). Dubai Silicon Oasis is the definitive environment for the global semiconductor industry and provides every facility required for success in today’s fast-changing world: from incubators, to networking and outsourcing support, business link-ups, venture capital, consulting, etc. 52 PKF - Free Zones in the UAE - Free Zones in Dubai The most authoritative and comprehensive portal on the semiconductor industry will be managed out of DSO, which will knit together the significant players in the semiconductor industry. The portal will be configured to be an excellent marketing vehicle with the potential to create enormous business opportunities. The Dubai Silicon Incubation Centre (DSIC) at DSO provides the facility for Broadband and Wireless Incubation for the development and commercialization of Intellectual Property and is helping in creating regional enterprises at the top end of the technology spectrum. Features • World-class campus, exquisite layout. • Plug-and-play facilities. • Comprehensive support facilities for IC companies. • All suppliers and service providers under one roof - cost and time savings. • Mutually - supporting community - joint projects, shared facilities. • Type of company activities would include CAD/CAE companies, design companies, packaging companies, testing companies, etc. Types of registration • As a branch of foreign company. • As a branch of a UAE company. • As a Free Zone Company (FZCO) - minimum share capital is AED 500,000. • As a Free Zone Establishment (FZE) - minimum share capital is AED 1,000,000 Facility costs and type of license Facility Size Office Min 50 sq.mtr Warehouse Min 366 sq.mtr Land Min 5,000 sq.mtr FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Manufacturing Trading Service Cost in AED per annum 2,300 per sq.mtr 600 per sq.mtr 150 - 250 sq.mtr approx Cost in AED per annum 15,000 PKF - Free Zones in the UAE - Free Zones in Dubai 53 15,000 15,000 Facility Size Office Min 50 sq.mtr Warehouse Min 366 sq.mtr Land Min 5,000 sq.mtr FZE Registration Fee one time AED 10,000 FZCO Registration Fee one time AED 15,000 Type of License Manufacturing Trading Service Cost in AED per annum 2,300 per sq.mtr 600 per sq.mtr 150 - 250 sq.mtr approx Cost in AED per annum 15,000 15,000 15,000 * These figures are indicative and subject to change. DUBAI INTERNATIONAL FINANCIAL CENTRE (DIFC) The DIFC was initiated by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai. He had the original vision to create an international financial centre in Dubai. The DIFC is expected to make a strong contribution to the GDP growth of Dubai, as well as that of the United Arab Emirates and the region as a whole. The DIFC is an “onshore” financial centre, offering a platform of choice for leading financial institutions and service providers looking to do business in the region. It has been established as part of the goal to position Dubai as a recognized hub for institutional finance, and as the regional gateway for capital and investment. It aims to play a pivotal role in meeting the growing financial needs and requirements of the region, while strengthening links between the financial markets of Europe, the Far East and the Americas. With the recent economic development, rapid expansion of trade, population growth and the vast infrastructure projects currently underway, there is a growing requirement for a financial centre to serve the rapidly expanding needs of institutions and governments in this region. The DIFC is a Federal Financial Free Zone attached to the Government of Dubai, established in accordance with United Arab Emirates Federal Law and by Dubai Law. The President of DIFC is His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Ruler of Dubai. The DIFC concept has evolved as a means of: • Providing depth to the regional financial markets by broadening the range of traditional methods of financing currently provided by regional banks. Attracting liquidity back into investment opportunities within the region, thereby contributing to its economic growth. 54 PKF - Free Zones in the UAE - Free Zones in Dubai • Facilitating planned privatizations in the region and enabling initial public offerings of privately owned companies, thus providing impetus to the programme of deregulation and market liberalization throughout the region. • Contributing to the development of regional stock markets which, in turn, will contribute towards broadening the capital and ownership base of private sector companies; and, promoting the growth of Islamic finance and the development of the region’s reinsurance sector. NASDAQ DUBAI (Formerly known as The Dubai International Financial Exchange Limited {DIFX}), a subsidiary of the DIFC Authority, is expected to play a major role in the development of regional capital markets by attracting key regional companies to list their shares and other issued securities on the exchange. This, in turn, is expected to attract international investors and encourage additional portfolio flows to the region, thereby accelerating the process of the region’s integration with world markets. The DIFC has three independent bodies overlooking its operations, which enable it to function as a self contained financial service center and each body is assigned independent functions. These are DIFC Judicial Authority (DIFC Courts), DIFC Authority [with its subsidiary DIFC Investments and NASDAQ DUBAI and Dubai Financial Services Authority (DFSA)]. DIFC business activities Business Activity Financial services Authorized Firms (AF) Ancillary Service Providers (ASP) Authorized Market Institutions (AMI) Non-financial services* Description of Activities Regulated by DFSA Businesses engaged in financial services Businesses engaged in the provision of legal or accounting services Businesses engaged in operating an exchange and/or a clearing house Non-regulated * Business not engaged in financial services, i.e. business infrastructure, corporate offices, and professional services, other than law and accounting firms, and other firms not involved with financial services. PKF - Free Zones in the UAE - Free Zones in Dubai 55 Legal Restrictions on Authorized Firms in DIFC • DIFC entities may not offer any products or services to the retail market • Insurance activities in the UAE are restricted to re-insurance • UAE federal laws regarding the Criminalization of Money Laundering apply, while federal civil and commercial laws do not apply. • DIFC entities may not take deposits, deal and offer any products or services in UAE dirham • All DIFC licensed entities must be resident in the DIFC. If no space is available in DIFC, the entity may apply to be resident in Dubai until such time space is available. While the DFSA permits a wide range of financial services to be carried out from within the DIFC, some restrictions apply. Authorized Firms are not permitted to undertake the following activities: • Dealing with an individual client with less than US$ 1 million in liquid assets • Dealing with an institutional client with share capital or net assets less than US$5 million • Accepting deposits from the United Arab Emirates market • Conducting insurance business with individuals • Providing money services unless it is connected with another financial service for which the firm is authorized Features • Internationally accepted laws and regulatory processes. • A world-class, independent, regulatory agency working alongside other financial regulatory agencies located in major global jurisdictions. • A wholly transparent operating environment, complying with global best practices. • A dollar denominated environment. • An international stock exchange with primary and secondary listings of debt and equity instruments. • A variety of legal vehicles that may be established with capital structuring flexibility. The DIFC focuses on several sectors of financial activity like the Banking Services (Investment Banking, Corporate Banking and Private Banking); Capital Markets (Equity, Debt Instruments, Derivatives and Commodity Trading); Asset Management and Fund Registration; Insurance and Re-insurance; Islamic Finance; Business Processing Operations and Ancillary Services. 56 PKF - Free Zones in the UAE - Free Zones in Dubai Entities can be set up in the DIFC either as: • Authorised firms • Authorised market institutions • Ancillary service providers Authorized Firms (AF): Authorized Firms in the DIFC are categorized into five distinct license categories depending on the type of activity that the firm will be undertaking. Each of these categories of license has its own rules and capital requirements. The financial services described under each group are the determinants for the relevant category. Category 1 Accepting Deposits Dealing in Investments Category 2 as Principal Dealing in Investments as Agent Category 3 Operating a Collective Investment Fund Providing Credit Providing Trust Services Acting as the Trustee of a Fund Managing Assets Managing a profit sharing investment account Arranging Credit or Advising on Financial Operating an Deals in Investments Products or Credit Alternative Trading Category 4 System Insurance Management Arranging Custody Insurance Intermediation An Islamic Financial Category 5 Institution Providing Custody Arranging credit or deals in investments Providing Fund Administration Apart from offering financial services specified under a particular Category, the AF can also provide services included under lower categories. For instance, an AF in Category 1 can additionally offer financial services as listed under Category 2, 3 and 4; however, the reverse is not permitted. Ancillary Service Providers (ASP): under the DFSA definition, ASP’s include law firms and accounting firms that at the time of application provide services to one or more licensed institutions. PKF - Free Zones in the UAE - Free Zones in Dubai 57 Authorized Market Institutions (AMI): under the DFSA definition, AMI’s include entities which carry on, or intend to carry on, the financial service of operating an exchange and/or a clearing house in, or from, the DIFC. Types of registration The DIFC allows for the establishment of 100% foreign owned companies, whether as a branch of an already existing foreign company or as a 100% incorporated company within the DIFC. The types of legal entities that can be incorporated/ registered in DIFC vary for financial services, and non-financial services. The principal forms of legal entities available within DIFC include: • Company Limited by Shares (LTD) • Limited Liability Company (LLC) • Limited Liability Partnership (LLP) • Limited Partnership (LP) • General Partnership (GP) • Branch of a Foreign Entity (Recognized Entity) • Representative office Capital requirement Authorized Firms: Each of the five categories of AF has its own capital requirements, as specified in the table below: Authorized Firms Category 1 Category 2 Category 3 Category 2 or 3 that provide custodial services to collective investment funds or are depositories of mutual funds/ open ended investment companies Category 4 Category 5 Base capital requirement USD 10 million USD 2 million USD 500,000 USD 4 million USD 10,000 USD 10 million 58 PKF - Free Zones in the UAE - Free Zones in Dubai Ancillary Service Providers: There are no minimum capital requirements for ASPs. However, ASP’s must be able to meet their liabilities as and when they fall due. Costs (Application and License fees) • The application fees vary according to the provided Financial Services, and the number of employees holding Authorized Individual status. The maximum overall application fee is capped at US$150,000. • The Financial Services application fee will range from US$ 10,000 to US$ 50,000 depending on the Financial Services a firm intends to conduct. • The application fee for each Authorized Individual is US$ 1,000 (up to a maximum of US$ 50,000). Fee - Retail Outlets - Limited Liability Company / Company Limited by Shares / Foreign Recognised Company • Application for Reservation of Name US$ 340 • Application for Incorporation of a Limited Liability Company US$ 3,400 • Commercial License fee (payable upon incorporation and annual renewal) US$ 5,100 INTERNATIONAL HUMANITARIAN CITY (IHC) International Humanitarian City (IHC) is a global humanitarian and aid hub, given a Free Zone status in Dubai. IHC is an independent Free Zone created by the Government of Dubai and chaired by HRH Princess Haya Bint Al Hussein, Wife of HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, Ruler of Dubai. IHC consolidates Dubai as an essential link in the humanitarian value chain. International Humanitarian City (IHC) which aims to facilitate aid and development efforts by providing local and international humanitarian entities with facilities and services specifically designed to meet their needs. More than 55 organisations and commercial companies are currently registered with IHC. IHC is a non-religious, nonpolitical and non-profit organisation. IHC brings together United Nations agencies, local and international aid and development organisations, commercial companies PKF - Free Zones in the UAE - Free Zones in Dubai 59 and other stakeholders in a secure environment that fosters partnerships, social responsibility and global change. Currently IHC is located in central Dubai near Business Bay, however IHC will be expanding to meet the rapidly growing requirements of the global humanitarian community and relocating to new facilities which will be developed on land allocated by the Government of Dubai in Dubai World Central (near to new upcoming Jebel Ali international airport). Those interested in establishing any organisation / company within IHC and wish to receive more information about the offering and registration procedures, should complete the “Expression Of Interest Form”. Upon receipt of this Expression of Interest Form, a member of the IHC team will contact the potential client you want to meet and schedule a meeting to discuss your specific needs and what IHC has to offer. Features • Strategic location. • Logistics Hub • World class infrastructure. • Ability to assimilate relief aid suppliers. • Organisations and donors within an integrated city. • Cost Effective procurement options • Easy access to the port and the international airport. • Type of organisations in IHC would include United Nations agencies, local and international aid and development organisations, well established NGO’s, commercial companies relief agencies, donors and complimentary business, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Subsidiary - minimum share capital varies. • As a New Company - minimum share capital varies. 60 PKF - Free Zones in the UAE - Free Zones in Dubai Facility costs and type of licenses Type of License Trading Service Registration fee - AED 5,000 Cost in AED per annum 8000 10,000 * These figures are indicative and subject to change. DUBAI LOGISTICS CITY (DLC) Dubai Logistics City (DLC) is a integrated logistics platform, with all transport modes, logistics and value added services, including manufacturing and light assembly. DLC is part of Dubai World Central (DWC), which is a massive, multi-phase development centred around the world’s largest international airport; the Jebel Ali International Airport. DWC is the world’s first truly integrated logistics platform, with all transport modes, logistics and value added services, including manufacturing and assembly, in a single bonded and Free Zone environment. Hence DLC Free Zone is adjacent to the upcoming Jebel Ali International Airport and adjacent to the Jebel Ali Port and Free Zone. DLC can be used as • A global supply chain hub for sea-air or air-air transport combinations • A global hub for value adding logistics operations such as merge-in-transit, customisation, postponement, packaging and labelling, final assembly • A distribution hub for the greater region while reducing the number of required warehouses and improving customer service • A platform to re-gain control of the distribution channel, e.g. by the introduction of direct sales DLC provides this Free Zone platform exclusively for logistics businesses to ensure the logistics community can optimally collaborate and will find sufficient space to expand in the future. With the exception of applications for the DLC Office Park, Free Zone and operations licenses will only be issued to companies closely related to logistics PKF - Free Zones in the UAE - Free Zones in Dubai 61 business, e.g. forwarders engaged in multi-modal cargo handling, logistics service providers offering warehousing and value added services in a multi-client environment and with multi-modal transport needs contract logistics service providers with dedicated or custom designed facilities for distribution and value added services industry and trading companies which self-operate their distribution centers, final assembly and other value adding activities as part of their down-stream order fulfilment processes companies supporting the logistics community. Features Air cargo terminals: Directly at the apron and designed for air cargo terminal handling service providers who want to address their individual market of airlines. Land plots for industry or contract logistics: With most flexible plot layouts to support dedicated industry or contract logistics facilities and larger multi-client warehousing operations. Land plots for forwarders: Exclusively for forwarders with access to the airport’s apron and optimal for mid-sized and larger forwarding businesses who want to combine shipment handling and consolidation operations and warehousing/distribution services. Shared forwarders warehouses: Near the air cargo terminals and optimal for small and medium sized cargo handling operations. Integrator facilities: a dedicated section for integrator facilities directly at the apron provides amenities/facilities throughout the premises. All logistics services and transport modes are integrated into a single customs bonded and a Free Zone environment and allow companies to focus on the optimization of their supply chains. Types of registration • As a branch of a foreign / UAE company. • As a Dubai World Central Limited Liability Company (DWC LLC) – No minimum share capital requirements. 62 PKF - Free Zones in the UAE - Free Zones in Dubai Licence costs Particulars Registration fee (DWC-LLC or Branch or conversion of Branch to DWC-LLC) License fee (per package or up to 5 activities per licence) (annual) License fee for each additional activity (annual) Land - minimum 10,000 sq.mtr Cost in AED 10,000 10,000 5,000 * These figures are indicative and subject to change. Note – Dubai Maritime City is no longer a Free Zone. However, it provides licenses for certain specified maritime activities in the Dubai mainland with 100% foreign ownership. PKF - Free Zones in the UAE - Free Zones in Dubai 63 64 PKF - Free Zones in the UAE - Free Zones in Dubai FREE ZONES IN SHARJAH AND THE NORTHERN EMIRATES PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 65 SHARJAH AIRPORT INTERNATIONAL FREE ZONE (SAIF ZONE) Sharjah Airport International Free Zone (SAIF Zone) was established by an Emiri Decree No.2 in 1995. SAIF Zone is placed on the crossroads of major trading routes between East and West. Sharjah offers excellent global, sea, land and air transport links with access to a market of over 1.4 billion consumers, covering member state of the GCC and the Arab World, Iran, CIS countries, the Asian Sub-continent and parts of Africa and the Eastern Mediterranean. Adjacent to Sharjah International Airport and just a few minutes from Sharjah City and Port Khalid, the location of SAIF Zone is enhanced by its secondary seaport facility located in the Gulf of Oman at Port Khorfakkan. Features • The only Emirate with seaports on the East and West coasts. • SAIF Zone is the world’s first ISO certified Airport Free Zone. • Access to ports in the Arabian Gulf and the Indian Ocean. • Lease period upto 25 years. • Type of company activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage, services, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 150,000. • Free Zone Establishment (FZE) - minimum share capital is AED 150,000. 66 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates Facility costs and type of license Facility Size Land Min. 2500 sq.mtr Executive Offices Min. 24 sq mtr E-Desk Facility Factory/Warehouse 134 - 645 sq.mtr FZE / FZCO Registration Fee AED 10,000 (one time fee) Branch Registration Fee AED 5,000 (one time fee) Type of License Industrial Commercial (3 items) Service General trading Buying & Selling of Real Estate Real Estate Development Aviation License Freight Forwarding & cargo handling Cost in AED per annum 50 - 100 per sq.mtr 1,650 per sq.mtr 15,000 Varies from 63,000 - 185,000 Cost in AED per annum 7,500 - 10,000 7,500 - 10,000 7,500 15,000 15,000 15,000 15,000 9,000 * These figures are indicative and subject to change. HAMRIYAH FREE ZONE (HFZ) The Hamriyah Free Zone (HFZ) was established by an Emiri Decree No. 6 dated 12th November, 1995. It is becoming one of the cornerstones of industrial development within the Emirates. Hamriyah Free Zone consists of 12 square km of prime industrial and commercial land. The HFZ Authority is currently developing first class services and facilities that will complement it’s 14 meter deep water port which will offer a strategic business advantage to the investors. PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 67 HFZ has been awarded the Century International Gold Quality Award for the year 2002. This makes HFZ the first Free Zone in the World to receive such a prestigious award. Features • Hamriyah Free Zone (HFZ) Access to 3 modern seaports. • Sharjah is the only Emirate with seaports on the East and West coasts. • HFZ has access to one of the largest cargo hubs in the UAE at Sharjah International Airport. • Lease period upto 25 years. • Type of activities include manufacturing, processing, assembling, packaging, import/ export, distribution, storage, services, etc. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • Minimum capital requirement for FZE and FZCO has been waived by the HFZ authorities Facility costs and type of license Facility Size Land Min. 2,500 sq.mtr E-Desk Facility 9.5 sq.mtr Factory/Warehouse 187 - 614 sq.mtr Registration Fee AED 9,000 (one time fee ) Cost in AED per annum 20 - 30 per sq.mtr 25,000 - 35,000* Varies from 55,000 - 130,000 * Commercial/Service License - AED 25,000/* General Trading License - AED 35,000/Type of License Industrial Commercial (5 items) Service General Trading (exceeding 5 items) Cost in AED per annum 3,500 3.500 3,500 12,000 * These figures are indicative and subject to change. 68 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates AJMAN FREE ZONE (AFZ) Ajman Free Zone was formed under Law No. 3 of 1996 of the Emirates of Ajman. Strategically situated at the entrance of the Arabian Gulf, Ajman Free Zone is well placed to serve Eastern and Western markets. Ajman’s proximity to Sharjah and Dubai provides easy accessibility to the two international airports and four ports. The Free Zone is home to over 1400 companies approximately. Features • Economical wage structure and easy access to vast work force. • Total elimination of all service charges and hidden fees. • Lease period upto 20 years. • Type of company activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage services. Types of registration • As a branch of a foreign / UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is US $ 50,000 (or AED 185,000). • As a Free Zone Establishment (FZE) - minimum share capital is US $ 50,000. (or AED 185,000). Facility costs and type of license Facility Smart Office Executive Office Size Varies One desk space 30 sq.mtr Offices 16 - 40 sq.mtr Land Min. 2000 sq.mtr Factory/Warehouse 134 - 645 sq.mtr FZE/FZCO Registration Fee - no registration fee Cost in AED per annum 23,050 AED 63,650/- approx (inclusive of rent, license and other service charges) Varies from 1,500 - 1,600 per sq.mtr Starting from 20 per sq.mtr Varies from 63,000 - 185,000 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 69 Type of License Industrial Trading Service General trading Cost in AED per annum 7,000 Varies from 3,900 to 6,500 depending on the number of items 6,500 9,100 * These figures are indicative and subject to change FUJAIRAH FREE ZONE [FFZ] Fujairah Free Zone was formed under Law No. 6 of 1987 of the Emirate of Fujairah. Fujairah Free Zone is adjacent to the Port of Fujairah. Companies established there have easy access to all Arabian Gulf ports. Fujairah Free Zone is also close to Fujairah International Airport which is the only airport serving the UAE East Coast as well as Northern Oman. The Port of Fujairah is adjacent to the Free Zone. Investors have easy access to all Arabian Gulf ports. Features • Multi-access to neighboring and global markets by land, sea and air. • Efficient and cost-effective investment facilitation. • Served by Fujairah Port and the Fujairah International Airport. • Lease period upto 15 years. • Type of company activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage services. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. • As a Free Zone Company (FZCO) - minimum share capital is AED 150,000. • Free Zone Establishment (FZE) - minimum share capital is AED 150,000. 70 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates Facility costs and type of license Facility Size Offices 15 - 35 sq.mtr Flexi Desk Varies Virtual Office Varies Factory/Warehouse 300 sq.mtr onwards Land Min. 250 sq.mtr FZE Registration Fee AED 5,000 (one time fee) Type of License Industrial Commercial Service General trading Real Estate Investment Real Estate Investment & Development Cost in AED per annum 890 -1700 per sq.mtr 15,000 12,000 225 per sq.mtr approx 15 per sq.mtr onwards Cost in AED per annum 5,000 2,500 5,000 15,000 40,000 - 45,000 50,000 * These figures are indicative and subject to change FUJAIRAH MEDIA ZONE (FM ZONE) / CREATIVE CITY Fujairah is the latest Emirate to make its mark on the media map of the country with its “Creative City”, a fast growing media hub luring in aspiring media professionals and companies. Fujairah Media Inc.(FMI) was established as a broadcasting organisation for the Emirate of Fujairah which is also known as Fujairah Media (FM). FM is a joint venture between Fujairah Cultural Authority and Arab International Media Services FZ LLC. Inspired by visionary leadership and armed with a creative mission, the FM have seven creative zones and each zone has been planned keeping in mind the services and features required for the respective activities. PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 71 The creative zones are as follows: Audio/Visual Theatrical arts Technology Publishing Training Design Cinema The Free Zone is a 200,000 square meter complex and is located alongside Fujairah highway connecting to Emirates road. The FM authority is issuing licenses by providing office facilities at the prominent Fujairah tower. The FM zone enjoys a Free Zone status and hence is entitled to a tax free status, 100% foreign ownership, full repatriation of capital and profits and quick approval procedures, etc. The Free Zone also allows media professionals to register as freelancers. The type of licenses issued by the FM zone are as under: • TV Broadcasting, production, TV management. • Audio management. • Advertising Agency, Public Relations Agency, Direct Marketing, Sales Promotion, Outdoor Advertising, e-Services, Specialty Communication, Branding and Corporate Identity • Printing, Publishing, Distribution, Sports Management and Promotion, Business Events Management, Event Production, Event Ticketing, Exhibition Organisation and Management, Festival Organisation and Management, Live Theatrical Shows Management and Promotion, Performing Arts Management • Research and Information, Planning and Buying, Content Production, Media Monitoring, Graphic Design . • Marketing Consultancy, Market Research Consultancy, Concept and Design Consultancy. • Digital and Interactive Game Development, Digital Media Library, Distribution and Management, Digital Signage Development and Management, Interactive Services, Media Hardware Equipment and System Integration, Media Software Development and System Integration, Media Web Design and Management, Web Analytics, Search Engine Optimisation. • News Agencies, Research and Information Services. 72 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates Features • Seven creative zones • Aims mainly to attract local and regional clients. • Focus on smaller businesses and Freelancers. • Haven for Intellectual property Right (IPR). • Established terrestrial digital broadcasting, (DVB-H) platform in the Middle East namely “Jebalcom”. • Home to 13 channels of various languages. • Providing production facilities. Types of registration • Branch (parent company should be minimum 2 years old) • FZCO with minimum share capital of AED 150,000 • FZE with minimum share capital of AED 50,000 • Freelancer (no capital required) Facility costs and type of license Facility Size Executive office Min. 350 sq.ft Private Desk /Hot desk – (only for freelancers) Land Varies FZE / FZCO registration fee one time AED 4,000/Branch registration fee one time AED 4,000/Type of License Service Freelancers *Premium service License (as decided by the FM authority like publishing/broadcasting etc.) Cost in AED per annum 90 per sq.ft 7,900 per desk Not available Cost in AED per annum 12,500 12,000 US$ 12,000 * These figures are indicative and subject to change PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 73 AHMED BIN RASHED FREE ZONE (Umm Al Quwain) The Ahmed Bin Rashed Port and Free Zone is located on the West Coast of the United Arab Emirates, in the Emirate of Umm Al Quwain (UAQ). The Free Zone was formed under decree No. 2 of 1987 of UAQ. The Free Zone complex consists of 845 meters of quay wall with 400 meters capable of handling ocean-going vessels and 118,000 square meters of land reserved for light Industrial Development. Features • Type of activities include manufacturing, processing, assembling, packaging, import/ export, distribution, storage services. • Leases up to 15 years. Types of registration • As a branch of a foreign company - no minimum capital required. • As a branch of a UAE company - no minimum capital required. Facility costs and type of license Facility Facility Land Land Light industrial units (pre-built) Light industrial Minimum officeunits space(pre-built) Minimum office space Type of License Type of License General Trading General Trading Management and consultancy Management and consultancy Service Service Size Size Varies Varies Varies Varies Varies Varies Cost in AED per annum Cost in sq.mtr AED per annum 30 per 30 per sq.mtr 604 per sq.mtr 604 per sq.mtr 25,000 25,000 Cost in AED per annum Cost 5,000in AED per annum 5,000 5,000 5,000 2,000 2,000 * These figures are indicative and subject to change 74 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates RAS AL KHAIMAH FREE ZONE (RAKFTZ) The Ruler of Ras Al Khaimah, H.H. Sheikh Saqr Al Qassimi under decree No.1 on May 1st 2000, created this Free Trade Zone. RAK FZ thereby opened its doors to the World’s leading businesses. Ras Al Khaimah Free Zone Authority oversees three new sub-zones within the Emirate. The 71 hectare Technology Park is intended to accommodate capital-intensive, high technology manufacturing and assembly companies. The park is adjacent to the Ras Al Khaimah Ceramics Factory and other light manufacturing businesses. The Al Hamra Development, located across the Emirates Highway, is a 325 hectare waterfront recreational and residential development that includes a hotel, waterfront villas, marina and golf course. The proximity of the Technology Park to the Emirates Highway makes it readily accessible to the City Centre, International Airport, Port Saqr and destinations southward, such as Dubai. The Free Zone is home to over 450 companies. Features • Clients can operate to full capacity from their Ras Al Khaimah offices or warehouses in any of the 3 Free Zone Parks (Business Park, Industrial Park and Technology Park Free Zones). • Choice of professionally serviced, prime locations in the heart of Dubai, from which to concentrate on marketing and management activity. • Lease period up to 15 years. • Type of company activities include manufacturing, processing, assembling, packaging, import/export, distribution, storage, services, cargo and freight forwarding, accounting and audition services, logistical, etc. • The flexibility to open up offices in the Emirate of Dubai or Abu Dhabi. Types of registration • As a branch of a foreign company – no minimum capital required. • As a branch of a UAE company – no minimum capital required. • As a Free Zone Company (FZCO) – minimum share capital is AED 100,000 OR 500,000 (for General Trading ) PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 75 • Free Zone Establishment (FZE) – minimum share capital is AED 100,000 OR AED 500,000 (for General Trading and Real Estate license) Facility costs and type of license Facility Size Business Centre/ Executive Office 12 - 2,200 sq.mtr Flexi Office / Shared Office varies Flexi Desk / Shared Work Station One desk Flexi Warehouse 205 sq.mtr Factory/Warehouse 150 - 416 sq.mtr FZE/FZCO Registration Fee AED 7,000 (one time fee) Type of License Industrial Commercial (upto 7 actvities) Consulting and service Real Estate Consultancy General trading Cost in AED per annum 1,500 - 1,700 per sq.mtr 37,690 - 56,040 approx (inclusive of rent, registration, license & other service charges) 12,500 20,000 50 per sq.mtr approx Cost in AED per annum 5,000 3,650 7,500 16,000 15,000 * These figures are indicative and subject to change RAS AL KHAIMAH MEDIA FREE ZONE (RAKMFZ) - RAK MEDIA CITY RAK authorities have established the Ras Al Khaimah Media Free Zone (RAKMFZ) on 3 January 2006, in order to provide the right atmosphere for genuine and responsible media companies and to attract genuine top notch professionals from the media industry. The RAK Government has been playing a major role in encouraging local and foreign investors to come into the Emirate and use it as a base for their business activities across the UAE and the GCC region. Ras Al Khaimah Media Free Zone (RAKMFZ) is also referred to as RAK Media Free Zone, RAK Media City or Film City. 76 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates RAKMFZ follows the “Media Code of Conduct“ followed by other Emirates in the country. The facility is proposed to play host to media establishments, television channels, studios for audio-visual productions and computer graphics houses besides animation studios. The new facility will provide its clients with various media services including teleport facilities for uplinking images from Ras Al Khaimah to various satellites. The Free Zone will lease land to investors who wish to set up their own media facilities, be it a printing press, a film studio, an advertising agency, a magazine office or a television studio. Also lease ready-to-use office space and up-linking facilities to such licence holders. To make use of RAK’s colourful and rich landscape besides its rich history and heritage that makes it the ideal venue for film shoots, film studios and establishments linked to the film industry are also being issued a licence by the RMFZ and many leading filmmakers have expressed interest in setting up in Film City in RAK. Currently the RAK Media City is going on an expansion drive by investing Dh.80 million into building 10 studios, 10 dubbing theatres and 20 shooting stages for films and TV productions. The new facilities, once completed aim to offer a more convenient place for mediarelated companies that are establishing business in the UAE with RAK as their base. The new facilities will be used by publishing, advertising and media houses as production bases. Competitive rental costs, service convenience and an upcoming future with economic growth in RAK are added advantages for the companies starting to have a presence in RAK. In recent months, more than 20 international companies from the publishing, advertising and media sector have established activities in the RAK Media Free Zone. The types of licenses issued by the RAK Media City are as under: • TV Broadcasting, production, TV management. • Audio management. • Advertising Agency, • Printing, Publishing, Distribution. • Sports Management and Promotion • Studios for film, television, audio-visual productions, computer graphics houses and animation studios, etc. • Graphic Design PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates 77 • Consultancy and Research, Concept and Design. • News Agencies, Research and Information Services, etc. Features: • Image uplinking via satellites • Teleport services • Competitive rental cost • Following Media Code of Conduct • Providing production facilities. Types of registration • FZ LLC with minimum two shareholders. Share capital of AED 150,000 • FZE with single shareholder. Minimum share capital of AED 100,000 Facility costs and type of license Facility Size Executive office Min. 300 sq.ft Hot desk (3 to 4 visas) desk FZE /FZ LLC No Registration Fee Type of License Service Broadcasting Publishing Cost in AED per annum 120 per sq.ft 10,000 per desk Cost in AED per annum 15,000 25,000 20,000 * These figures are indicative and subject to change 78 PKF - Free Zones in the UAE - Free Zones in Sharjah and the Northern Emirates FREE ZONES IN ABU DHABI PKF - Free Zones in the UAE - Free Zones in Abu Dhabi 79 ABU DHABI AIRPORT FREE ZONE (ADAFZ) Abu Dhabi Airports Company (ADAC) is constructing a Free Trade Zone at Abu Dhabi International Airport namely Abu Dhabi Airport Free Zone (ADAFZ). Occupying a built up area of over 7 million square metres, the ambitious project will offer investors a range of facilities and services. ADAC plans to place all amenities under one roof and intends for all the required facilities to become integrated to ensure that investors receive centralised service. ADAFZ is a part of the ongoing airport expansion. ADAFZ aims to promote Abu Dhabi’s economic development by offering numerous benefits for investors such as tax exemptions and 100% foreign company ownership. The creation of the Free Zone marks a milestone in Abu Dhabi’s plans to establish itself as a dynamic business centre. The Free Zone will also ensure that Abu Dhabi International Airport will become a thriving cargo and business hub as well as ensuring increasing non-aeronautical revenues. With its investment incentives and its strategic geographical position at Abu Dhabi International Airport, the Free Trade Zone is set to become a flourishing business centre that will attract and promote private sector investments. ADAFZ will offer World-class infrastructure and multiple facilities in close proximity to ensure best service access within the Zone for a broad range of industries including: • Aerospace, Aviation and M.R.O. • Cargo Freight and Logistics • Semiconductors • Oil and Gas • Engineering, Construction and Building Materials • Consultancy and Business Advisory Services • I.T. Solutions and Telecommunications • FMCG • Luxury Goods and Jewellry • Pharmaceuticals and Medical Devices • Industrial Machinery and Engine Components • Media and Associated Services • Travel and Tourism Management Companies 80 PKF - Free Zones in the UAE - Free Zones in Abu Dhabi The creation of ADAFZ is driven by the Abu Dhabi Airports Company (ADAC), incorporated in March 2006, to lead the development of the Emirate’s aviation infrastructure. ADAFZ’s establishment is part of ADAC’s objective to finance its airport development programmes through non-aeronautical revenues, minimizing Government grants. ADAFZ’s Benefits • 100% Corporate tax exemption • 100% Import and export exemption • 100% Personal income tax exemption • 100% Foreign company ownership • 100% Repatriation of capital and profits Additional Advantages • One-stop-shop administration services • Fast and efficient cargo clearance services • International freight forwarders and logistics services • Online customer service • Land with easy access to airport apron • On-site customs inspection • 24 hours access to facility FREE TRADE AND LOGISTICS ZONE (Taweelah) The Abu Dhabi Ports Company (ADPC), DP World and Economic Zones World (EZW) entered into an agreement in 2007, that saw DP World operating the Khalifa Port and EZW operating the Free Trade and Logistics Zone located in Taweelah, Abu Dhabi. Involvement with Khalifa Port will represent the next stage in its growing relationship with ADPC. EZW, one of the largest developers and operators of Free Zones in the World is expected to manage an initial 25 km 2 trade and logistics Free Zone within the larger industrial zone in Taweelah, located halfway between Abu Dhabi and Dubai. PKF - Free Zones in the UAE - Free Zones in Abu Dhabi 81 The signing of this agreement with DP World and Economic Zones World is yet another step in the drive towards greater cooperation, integration and to build the commercial relationship between the neighbouring Emirates of Abu Dhabi and Dubai. The new port and logistics hub will solidify the UAE’s position as a world class transport and logistics hub. The Trade and Logistics Free Zone spread out over an area of 25 square km in its first phase and will be the first Trade and Logistics Free Zone in Abu Dhabi. twofour54 (2454) Abu Dhabi is home to a new media content creation zone called ‘twofour54’. Representing the geographical co-ordinates of Abu Dhabi, twofour54 aims to establish the city as a centre of excellence for Arabic content creation that is internationally renowned. The launch of twofour54 has created new industry opportunities for the region, by providing a collaborative and fully-equipped centre that brings together local, regional and international companies from across length and the breadth of the film, broadcast, digital, publishing and music industries. With some of the World’s leading content companies already onboard and announcing major plans, twofour54’s advanced ecosystem offers production facilities, infrastructure, training and a new business incubator - all on one site - for the development of World class Arabic content by people from the Middle East region for its 300 million Arab audience. twofour54 is based near Khalifa Park in Abu Dhabi. A 200,000 square metre waterfront site in the Mina Zayed area of the city has been earmarked for twofour54’s permanent campus, which should be completed within five years. twofour54 is built around four pillars located within a campus style environment that promotes cooperation and creative partnerships amongst the companies involved. twofour54 tadreeb twofour54 tadreeb will be the region’s premier vocational training academy, inviting media and entertainment professionals and graduates to gain and develop skills across a comprehensive range of media disciplines. twofour54 tadreeb is a dynamic partnership 82 PKF - Free Zones in the UAE - Free Zones in Abu Dhabi between twofour54 and global media players to offer world class courses led by highly experienced instructors. All the academy’s offerings are outcome-driven, practically focused training programmes. twofour54 ibtikar twofour54 ibtikar provides support and funding for new businesses and promising creative ideas across print, online, mobile and television platforms in the UAE and broader MENA region. twofour54 ibtikar offers two funding solutions, the iFund and the Creative Lab. The iFund offers start-up funding, business-planning and operational support to entrepreneurs who want to launch new ventures in Abu Dhabi. The Creative Lab provides seed funding, development guidance, and strategic planning to creative talent with exciting new content and creative ideas. twofour54 intaj twofour54 intaj supplies state-of-the-art production and post-production facilities, media asset management, broadcast and technical support services to its partners. This includes five high-definition studios fully equipped with the latest technologies, the region’s first media asset management services, as well as a highly experienced pool of dedicated operations and engineering professionals. twofour54 tawasol twofour54 tawasol provides holistic support services through its Shared Services and Property Management departments. Together, they form a one-stop-shop facilitating the relocation and establishment of content organisations in twofour54. All establishments in twofour54 are required to be licensed under the Business Licensing Regulations currently in force. When a licensee is engaged in disseminating content from the zone, they are also required to hold a Dissemination License in addition to their Business License. Types of registration • Branch • FZ LLC with no minimum share capital PKF - Free Zones in the UAE - Free Zones in Abu Dhabi 83 Types of license • • • • • Business License Dissemination License Television Broadcasting Print media Internet, Radio & other Media Facility costs Facility Office Empty offices (shell) Registration Fee - AED 2,500 (one time fee) Size Desk space Varies * These figures are indicative and subject to change 84 PKF - Free Zones in the UAE - Free Zones in Abu Dhabi About PKF PKF International PKF International is among the top international business advisory networks, measured by turnover and quality. The present International organisation was formed in 1969 and originally consisted of four member firms: Australia, Canada, United Kingdom and United States. Added to the sustained growth in the number of PKF member firms, this solidity has provided the foundations for the global sharing of expertise, experience and skills and the development of services that meet the evolving needs of all types of clients, from the individual up to the transnational company. At present it has 245 legally independent firms in 440 locations in 125 countries with an aggregate fee income of US$ 2.4 billion. The mission of PKF is to provide the highest quality professional services to all clients by: • Having a close network of member firms each firmly established and respected in its own country, providing an international perspective but delivering services with a local focus • Ensuring that there is a member firm in each mature and emerging market • Providing appropriate technical guidance and support to enable member firms to excel • Taking responsibility for the speedy dissemination of information and advice to all members • Adopting compatible information systems and technology • Making it easy for member firms to access the expertise of others • Encouraging the free interchange of staff • Guaranteeing a seamless and consistent service for all clients with transnational needs PKF - Free Zones in the UAE - About PKF 85 86 PKF - Free Zones in the UAE - About PKF PKF International AFRICA Algeria, Angola, Cameroon, Cote D’ivoire, Egypt, Gambia, Ghana, Kenya, Liberia, Mauritius, Mozambique, Morocco, Namibia, Niger, Nigeria, Rwanda, Senegal, Sierra Leone, South Africa, Tanzania, Togo, Tunisia, Uganda, Zimbabwe ASIA China, Fiji, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Papua New Guinea, Philippines, Russia, Singapore, Taiwan, Thailand, Uzbekistan, Vietnam AUSTRALIA Australia, New Zealand CARIBBEAN AND WEST INDIES Antigua, Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Dominican Republic, Grenada, Guyana, Jamaica, Nevis, Puerto Rico, St. Kitts, St. Lucia, Trinidad & Tobago, Turks and Caicos Islands EUROPE Austria, Belarus, Belgium, Bosnia and Herzegovnia, Channel Islands, Cyprus, Czech Republic, Denmark, Estonia, France, Georgia, Germany, Greece, Hungary, Ireland, Isle Of Man, Italy, Kazakhstan, Latvia, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom PKF - Free Zones in the UAE - PKF International 87 MIDDLE EAST Bahrain, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab Emirates, Yemen NORTH AMERICA Canada, Mexico, United States of America CENTRAL AMERICA Belize, Costa Rica, El Salvador, Guatemala, Honduras, Panama SOUTH AMERICA Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela 88 PKF - Free Zones in the UAE - PKF International PKF UAE Publications As part of the firm’s continuing service to clients, PKF-UAE has produced a number of publications for their information and benefit. These are as follows: Practice Profile A profile of PKF in the UAE Statement of Credentials Details of the firm, clients, services and the team Doing business in the UAE A guide to the UAE including economic and social background; the regulatory environment; basic business structures; grants and incentives (including Free Zones); taxation; and employment Free Zones in the UAE A guide to the major Free Zones in the United Arab Emirates including the salient features and costs PKF Update A quarterly newsletter detailing news from PKF-UAE and matters of interest in the region All the foregoing publications can be obtained from any of the UAE offices PKF - Free Zones in the UAE - PKF UAE Publications 89 90 PKF - Free Zones in the UAE - PKF UAE Publications ANNEXURE A Useful Contact Numbers P.O. Box Telephone Government Departments Chamber of Commerce Economic Department 662 853 (2) 621 4000 (2) 672 7200 Federal Government Ministries Economy Finance and Industry UAE Central Bank UAE Offset Group 901 433 854 908 (2) 613 1111 (2) 672 6000 (2) 665 2220 (2) 626 8037 Government Departments Chamber of Commerce & Industry Department of Tourism & Commerce Marketing Department of Economic Development 1457 594 13223 (4) 228 0000 (4) 223 0000 (4) 222 9922 Federal Government Ministries Economy and Commerce Finance & Industry UAE Central Bank Jebel Ali Free Zone Dubai Airport Free Zone Dubai Internet City Dubai Media City Dubai Multi Commodities Centre 3625 1565 448 17000 2525 73000 53777 48800 (4) 314 1555 (4) 393 9000 (4) 393 9777 (4) 881 3000 (4) 299 5555 (4) 391 1111 (4) 391 4555 (4) 390 3899 ABU DHABI DUBAI PKF - Free Zones in the UAE - Annexure A 91 AJMAN Chamber of Commerce Economic Department Ajman Free Zone 662 870 932 (6) 742 2177 (6) 744 6244 (6) 701 1555 Government Departments Chamber of Commerce and Industry Economic Department 580 829 (6) 530 2222 (6) 512 2222 Federal Government Ministries Economy UAE Central Bank Sharjah Airport International Free Zone (SAIF Zone) Hamriya Free Zone 3803 645 8000 1377 (6) 528 6663 (6) 559 2592 (6) 557 0000 (6) 526 3333 738 1133 (9) 222 2400 (9) 222 8000 87 10510 5000 10055 (7) 233 3511 (7) 227 1222 (7) 228 4444 (7) 207 7117 436 279 (6) 765 1111 (6) 765 5882 SHARJAH FUJAIRAH Chamber of Commerce and Industry and Agriculture Fujairah Free Zone RAS AL KHAIMAH Chamber of Commerce and Industry and Agriculture Economic Department UAE Central Bank Ras Al Khaimah Free Zone UMM AL QUWAIN Chamber of Commerce and Industry and Agriculture Ahmed Bin Rashid Free Zone 92 PKF - Free Zones in the UAE - Annexure A ANNEXURE B List of UAE Tax Treaties The Government of the United Arab Emirates has signed an Agreement for the Avoidance of Double Taxation and The Prevention of Fiscal Evasion with respect to Taxes on Income with several countries including: • The Government of the Republic of France, 1989 • • • • • • • • • • • • • • • • • • • • • • • The Government of the Republic of India, 1992 The Government of the Democratic Socialist Republic of Sri Lanka, 1992 The Government of the People’s Republic of China, 1993 The Islamic Republic of Pakistan, 1993 The Government of the Republic of Poland, 1993 The Government of the Republic of Turkey, 1993 The Government of Romania, 1993 The Government of the Republic of Egypt, 1994 The Government of the Republic of Italy, 1995 The Federal Republic of Germany, 1995 The Government of the Republic of Singapore, 1995 The Government of the Republic of Indonesia, 1995 The Government of the Republic of Tajikistan, 1995 The Kingdom of Belgium, 1996 The Government of the Republic of Finland, 1996 The Government of the Czech Republic, 1996 The Government of Tunis Republic, 1996 The Government of the Republic of Malaysia, 1996 The Government of Canada, 1998 The Government of Turkmenistan, 1998 The Government of Lebanon, 1998 The Government of the Kingdom of Morocco, 1999 The Government of the Republic of Syria, 2000 PKF - Free Zones in the UAE - Annexure B 93 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • The Government of the Russian Federation, 2000 The Royal Government of Thailand, 2000 The Government of the Peoples Democratic Republic of Algeria, 2001 The Government of Yemen Arab Republic, 2001 The Government of the Republic of Sudan, 2001 The Government of Mongolia, 2001 The Government of the Republic of Korea, 2003 The Government of the Republic of New Zealand, 2003 The Government of the Republic of Ukraine, 2003 The Government of the Republic of Austria, 2003 The Government of the Republic of Philippines, 2003 The Government of the Republic of Mozambique, 2004 The Government of the Republic of Armenia, 2004 The Government of the Grand Duchy of Luxembourg, 2005 The Government of the Republic of Mauritius, 2006 The Government of the Republic of Seychelles, 2006 The Government of Bosnia and Herzegovnia, 2006 The Government of the Republic of Azerbaijan, 2006 The Government of the Kingdom of Spain, 2006 The Government of the Republic of Malta, 2006 The Government of the Kingdom of Netherlands, 2007 The Government of the Republic of Bulgaria, 2007 The Government of the Republic of Uzbekistan, 2007 The Government of Kazakhstan 2008 The Government of Republic of Vietnam, 2009 The Government of Greece, 2010 The Government of Venezuela, 2010 The Government of Ireland, 2010 The Government of Georgia, 2010 The Government of Cyprus, 2011 The Government of Portugal, 2011 94 PKF - Free Zones in the UAE - Annexure B The Government of the United Arab Emirates has signed an Agreement for the Promotion and Protection of Investments with several countries including: • The Government of the Republic of Azerbaijan • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • The Government of Jordan The Government of Armenia The Government of Czech Republic The Government of Algeria The Government of Kingdom of Sweden The Government of the People’s Republic of China The Government of the Federal Republic of Germany The Government of Morocco The Government of Austria The Government of Yemen The Government of Uzbekistan The Government of Ukraine The Government of Italy The Government of Pakistan The Government of the United Kingdom The Government of Belgium The Government of Poland The Government of Belarus The Government of Turkmenistan The Government of Turkey The Government of Tunisia The Government of Romania The Government of Sudan The Government of Syria The Government of Switzerland The Government of Tajikistan The Government of France The Government of Finland The Government of Vietnam The Government of Korea The Government of Lebanon The Government of Malaysia The Government of Egypt The Government of Mongolia PKF - Free Zones in the UAE - Annexure B 95 Notes 96 PKF - Free Zones in the UAE - Notes This booklet has been prepared as a general guide. It is not a substitute for professional advice, which would necessarily have to take account of particular circumstances. The information and opinions given are liable to change without notice. Neither PKF nor its partners or employees make any representation regarding the completeness or accuracy thereof, and they accept no responsibility for any loss or damage incurred as a result of any user acting or refraining from acting upon anything contained in this booklet or upon its omission therefrom. © PKF UAE. All rights reserved. April 2012. PKF UAE is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.