Free Zone (Special Economic Zone)

A free zone, or special economic zone, is a designated area within a country where businesses benefit from relaxed regulations, tax incentives, and customs advantages compared to the rest of the country. The UAE's many free zones allow 100% foreign ownership and zero corporate and personal income tax, making them popular for international businesses and entrepreneurs. Despite their advantages, companies in free zones may struggle to meet substance requirements needed to access tax treaties or avoid CFC attribution. Mainland operations may be required for businesses serving the domestic market.