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How Many Free Zones Are in the UAE?

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How Many Free Zones Are in the UAE?
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The UAE has built a strong and diversified economy that attracts global investors and talent. A major driver of this success is its free zones. Setting up a business in the UAE gives entrepreneurs and investors key advantages, including 100% foreign ownership, tax exemptions, and a streamlined company formation process.

Free zones also offer specialized ecosystems for industries such as technology, media, logistics, and finance, along with modern infrastructure and support tailored to each sector. 

In Q1 2025, the UAE’s economy continued to grow strongly. Its real GDP reached AED 455 billion, up 3.9% compared to last year, with non-oil sectors contributing AED 352 billion. This 5.3% growth was largely driven by free zone activity, SME growth, and foreign investment, highlighting the crucial role free zones play in the country’s economic development.

What is a Free Zone in the UAE?

A free zone in the UAE is a designated geographical area with its own set of rules and regulations, separate from the mainland. These zones are designed to attract foreign investment by offering incentives like 100% ownership and tax exemptions. To understand how they work in Dubai specifically, check out our guide on what is a free zone company in Dubai.

Types of Free Zones in the UAE

The UAE hosts a diverse list of free zones in the UAE, each catering to specific business sectors. 

  • Commercial & Trading Zones: For import, export, and trading businesses (e.g., Jebel Ali Free Zone).
  • Industrial & Manufacturing Zones: For production, warehouses, and logistics (e.g., Khalifa Industrial Zone Abu Dhabi, Sharjah Airport International Free Zone).
  • Media & Creative Zones: For media, advertising, and content companies (e.g., Dubai Media City, twofour54 Abu Dhabi).
  • Technology & Innovation Zones: For IT firms and startups focused on tech growth (e.g., Dubai Internet City).
  • Financial & Professional Services Zones: Financial hubs with independent regulations (e.g., Dubai International Financial Centre, Abu Dhabi Global Market).
  • Education & Healthcare Zones: For schools, training institutes, and healthcare providers (e.g., Dubai Knowledge Park, Dubai Healthcare City).

If you’re exploring budget-friendly options, you can find the cheapest free zones in the UAE that provide excellent infrastructure and incentives for startups and SMEs.

Total Free Zones in the UAE: Emirate-Wise Division

The UAE is home to more than 50+  active free zones, a number that reflects its commitment to economic diversification and global trade. This figure is dynamic, as new zones are launched and existing ones are sometimes merged to enhance efficiency. The official UAE government website confirms this extensive network of specialized business hubs.

Here is a breakdown of the free zones across the seven emirates:

  • Dubai: The emirate leads with the highest concentration of free zones. Dubai hosts over 30 free zones, each catering to specific business needs and sectors. 

For a full overview of all Dubai free zones and their unique benefits, explore our complete list of free zones in Dubai.

  • Abu Dhabi: The capital has 8 key free zones, including KIZAD for industry, ADGM for finance, and twofour54 for media. 
  • Sharjah: This emirate has 5 freezone popular and cost-effective free zones like the Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah Free Zone. 
  • Ras Al Khaimah: Known for its business-friendly approach, setting a business in RAKEZ, one of the largest and most popular free zones in the region, offers solutions for a wide range of business activities and has 5 freezone.
  • Ajman: Business setup in Ajman Free Zone one and Ajman Media City Free Zone offers affordable and straightforward options, making them popular with startups and SMEs and has 2 freezone. 
  • Fujairah: Fujairah Creative City Free Zone is a well-known hub for media and creative professionals, while the Fujairah Free Zone focuses on trade and logistics and has 3 freezone.
  • Umm Al Quwain: Umm Al Quwain Free Trade Zone (UAQFTZ) provides a cost-effective and strategic location for micro-businesses, SMEs, and conglomerates and has 1 freezone.
Emirate Approx Free Zones
Dubai 30
Abu Dhabi 8
Sharjah 5
Ras Al Khaimah 5
Fujairah 3
Ajman 2
Umm Al Quwain 1

DUBAI (Largest number – global business hub)

Major and popular zones:

  1. Dubai Multi Commodities Centre (DMCC)
  2. Jebel Ali Free Zone (JAFZA)
  3. Dubai Airport Free Zone (DAFZA)
  4. Dubai International Financial Centre (DIFC)
  5. Dubai Silicon Oasis
  6. Dubai Internet City
  7. Dubai Media City
  8. Dubai Healthcare City
  9. Dubai Design District
  10. Dubai Industrial City
  11. Dubai South
  12. Dubai Knowledge Park
  13. Dubai Studio City
  14. International Humanitarian City
  15. Meydan Free Zone
  16. Gold & Diamond Park
  17. Dubai Textile City
  18. Dubai Flower Centre
  19. Dubai Science Park
  20. Dubai Outsource City

Dubai alone has around 30 free zones

Read more: Free Zones list in Dubai

Free Zones List in Abu Dhabi

  1. Abu Dhabi Global Market (ADGM)
  2. Khalifa Industrial Zone Abu Dhabi (KIZAD)
  3. Masdar City Free Zone
  4. Abu Dhabi Airport Free Zone
  5. Twofour54 Abu Dhabi
  6. ZonesCorp / Industrial City of Abu Dhabi

Abu Dhabi has about 8 free zones

Free Zones List in Sharjah

  1. Sharjah Airport International Free Zone (SAIF Zone)
  2. Hamriyah Free Zone
  3. Sharjah Media City (SHAMS)
  4. Sharjah Publishing City Free Zone
  5. Sharjah Research Technology & Innovation Park

 Sharjah has around 5 free zones.

Free Zones List in Ras Al Khaimah

  1. Ras Al Khaimah Economic Zone (RAKEZ)
  2. Ras Al Khaimah Free Trade Zone
  3. RAK Maritime City
  4. RAK Media Zone
  5. RAK Investment Authority Zone

Ras Al Khaimah has 5 free zones

Free Zones List in Fujairah

  1. Fujairah Free Zone
  2. Fujairah Creative City
  3. Fujairah Oil Industry Zone

Fujairah has 3 free zones.

Free Zones List in Ajman

  1. Ajman Free Zone
  2. Ajman Media City Free Zone

Ajman has 2 free zones

Free Zones List in Umm Al Quwain

  1. Umm Al Quwain Free Trade Zone

Umm Al Quwain has 1 main free zone.

Top Free Zones by Sector/Industries in the UAE

Below is a list of free zones in the UAE categorized by their industry focus.

  • Tech & Innovation:

    • Dubai Internet City (DIC): A pioneering tech hub hosting global giants like Microsoft, Google, and Oracle alongside thousands of startups.
    • Abu Dhabi Hub71: A global tech ecosystem that provides startups with community support, mentorship, and access to funding.
    • Dubai Silicon Oasis (DSO): A technology park offering modern infrastructure and incentives for IT and electronics companies.
    • Dubai Science Park: Ideal for biotech, life sciences, and environmental companies, offering research facilities and collaborative opportunities.
    • Masdar City Free Zone (Abu Dhabi): A hub for renewable energy and clean tech startups, with sustainable infrastructure and innovation support.

  • Media & Creative:

    • Dubai Media City (DMC): The region’s largest media community, home to broadcasters, advertising agencies, and production houses.
    • twofour54 (Abu Dhabi): A thriving media zone that supports content creators with state-of-the-art facilities and a collaborative environment.

  • Logistics & Trade:

    • Jebel Ali Free Zone (JAFZA), Dubai: One of the world’s largest free zones, connected to a major seaport and airport, making it a global logistics powerhouse.
    • Khalifa Industrial Zone Abu Dhabi (KIZAD): A massive industrial and logistics hub with excellent connectivity via sea, air, and road.

  • Finance & Professional Services:

    • Dubai International Financial Centre (DIFC): A leading global financial hub with an independent regulatory and legal system.
    • Abu Dhabi Global Market (ADGM): An international financial center with three independent authorities, attracting top financial institutions.

  • Manufacturing & Industry:

    • Sharjah Airport International Free Zone (SAIF Zone): A strategically located zone ideal for manufacturing and industrial businesses, with direct access to Sharjah’s airport.
    • Ras Al Khaimah Economic Zone (RAKEZ): A cost-effective and comprehensive zone offering customizable solutions for industrial companies.

Popular Free Zones by City/Industry

  • DMCC Free Zone (Dubai Multi Commodities Centre): DMCC is ideal for trading, commodities, and professional services. Companies benefit from world-class infrastructure, strategic location, and access to global markets. Learn more about DMCC Company Formation for step-by-step guidance on setting up here.
  • Dubai Airport Free Zone (DAFZA): For logistics, aviation, and trade companies, DAFZA offers proximity to Dubai International Airport and a streamlined company setup process. Explore Dubai Airport Free Zone Company Formation to understand requirements and benefits.
  • Sharjah Publishing City (SPC) Free Zone: SPC Free Zone focuses on publishing, media, and creative enterprises, providing tailored licenses and office solutions. Detailed guidance is available at SPC Free Zone Company Formation.
  • Meydan Free Zone: Meydan Free Zone provides flexible options for trading, service, and industrial businesses, combined with competitive costs and easy setup. Check Meydan Free Zone Company Formation for more information.
  • Ajman Free Zone: Ajman Free Zone is cost-effective and suitable for SMEs and startups seeking quick company registration. Full details are available at Ajman Free Zone Company Formation.

Why Does the Free Zone Number Keep Changing?

Key reasons for these changes include:

  • New Launches: The government launches new free zones to cater to emerging sectors like artificial intelligence, e-commerce, and sustainable technologies.
  • Mergers and Consolidations: Sometimes, multiple free zones under a single management entity are consolidated to improve efficiency and offer a more unified service. For example, Dubai’s TECOM Group manages several specialized zones, streamlining operations for businesses across different sectors.
  • Strategic Rebranding: Free zones may rebrand to better reflect their strategic focus or to appeal to a wider international audience.
  • Economic Diversification: As the UAE moves away from its reliance on oil, it creates new free zones to strengthen non-oil sectors and build a knowledge-based economy.

How Are Free Zones Regulated in the UAE?

Each free zone in the UAE operates under its own independent governing body, known as a Free Zone Authority. This authority is responsible for all administrative and regulatory aspects of the zone. This decentralized model allows each zone to create rules and offer services that are perfectly tailored to its target industry.

The role of a Free Zone Authority includes:

  • Issuing business licenses (e.g., commercial, service, industrial).
  • Handling company registrations and visa processing for employees.
  • Providing infrastructure and facilities like offices, warehouses, and land.
  • Ensuring compliance with the zone’s specific regulations.

Businesses must adhere to the compliance requirements set by their respective authority. These often include renewing licenses annually and, in some cases, submitting audited financial statements.

Learn more about the minimum investment to start a business in Dubai to plan your setup effectively and choose the right free zone for your goals.

Frequently Asked Questions

The primary difference relates to ownership and legal structure. In a free zone, foreign nationals can own 100% of their business. On the mainland, certain activities may require a local partner. Free zones also operate under their own set of civil and commercial regulations, distinct from the mainland federal laws, offering a more flexible business environment for international trade.

A free zone company cannot directly conduct business on the mainland. To do so, it typically needs to partner with a local distributor or agent. Alternatively, it can open a branch office on the mainland, which requires additional licensing and adherence to mainland regulations. This separation helps maintain the distinct legal and economic structures of each jurisdiction.

Dubai has the highest concentration, with over 20 free zones, many catering to tech, media, finance, and trade. Other emirates focus on cost-effective industrial, logistics, and niche sector zones.

Most free zones offer a 0% corporate tax guarantee for a specific period, often 15 to 50 years, which is renewable. However, the UAE introduced a 9% federal Corporate Tax in June 2023. While many free zone businesses (“Qualifying Free Zone Persons”) can still benefit from 0% tax on qualifying income, they must meet specific conditions and register for corporate tax.

The Jebel Ali Free Zone (JAFZA) in Dubai is the oldest and one of the largest free zones in the UAE and the world. Established in 1985, JAFZA was a pioneering project that set the standard for future free zones in the region. Its strategic location next to Jebel Ali Port has made it a global hub for logistics and trade.

No, it is not necessary to be a resident of the UAE to own a free zone company. Business owners can register and manage their company from abroad. However, setting up a free zone company makes the owner and their employees eligible to apply for UAE residency visas, which is a significant advantage for those wishing to relocate.

The question of how many free zones are in Dubai is common due to its large number. Dubai has over 30 free zones, each tailored to specific industries. This extensive list includes major hubs like JAFZA for trade, DIFC for finance, Dubai Media City for creative industries, and Dubai Internet City for technology, making it a highly diverse business ecosystem.

A company is licensed to operate only within the specific free zone where it is registered. To operate in another free zone, a business would need to either obtain a separate license for that zone or establish a branch office there. Each free zone authority has its own distinct jurisdiction and licensing requirements that must be followed.

The most common license types are Commercial, for trading activities; Service, for providing professional services; and Industrial, for manufacturing and processing. Some zones also offer specialized licenses like an E-commerce License or a Freelancer Permit. The right license depends entirely on the business activities the company plans to undertake within the chosen free zone.

Opening a corporate bank account in the UAE is a straightforward process, but it requires proper documentation. Banks have strict Know Your Customer (KYC) and compliance checks. You will need to provide your company’s trade license, incorporation documents, and details about the business and its shareholders. Having a UAE residency visa can often simplify the process.

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