UAE free zones take lead in drawing new businesses as corporate tax rules become clear

UAE free zones take lead in drawing new businesses as corporate tax rules become clear

Dubai: Free zones in the UAE are reinforcing their status as the go-to places for new businesses – both domestic and those coming in from overseas – with more clarity available on corporate tax incentives ‘designated’ zones can provide to tenants.

The UAE’s tax authorities have made it clear that businesses based in qualifying free zones get to have 0 per cent tax rate, provided certain key conditions are met.

Even otherwise, free zones have been drawing heavy interest in the year-to-date, especially with new businesses to the UAE seeking office space. In fact, demand for commercial space in free zones was the first to stage a strong recovery, while those based in the mainland has been playing catch up in recent weeks.

It’s the same whether it’s demand for space at Jebel Ali Free Zone (currently undergoing another round of expansion), DWTC, the DMCC hub, Kezad in Abu Dhabi, or DIFC.

At the start of the year, there had been some speculation that new/existing businesses would take a wait-and-see approach on whether they should opt for a free zone base or opt for the mainland license. This had to do with the introduction of the UAE’s corporate tax, and business owners want to