DAFZA Reduces Free Zone Business Set Up Fees By Up To 65%

Dubai Airport Freezone Authority, DAFZA, has reduced business setup cost by up to 65 percent, as part of its aim to increase its regional competitiveness and activate a number of key sectors by attracting Foreign Direct Investment, FDI. Supporting Dubai’s efforts to become an ideal destination for investment and prosperity, the decision will help achieve further stability for the operational processes of free zone companies and consequently sustain and drive investment growth.

Dr. Mohammed Al Zarooni, Director-General, DAFZA, said, "These incentives were agreed upon following comprehensive studies and polls evaluating the free zone’s initiatives, services, and business environment.

This has allowed us to ensure flexibility at DAFZA in meeting the requirements of new foreign investors and current customers.

"We are offering unique services that take into account the global economic climate and allow customers to increase earnings and operating profits as well as achieve business growth and prosperity. The ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP."

DAFZA has revisited and reduced registration, license, and staff visa fees for new investors by 65 percent, 33 percent, and 20 percent, respectively. Establishment card issuance fees have been cut by 17 percent, while fees for Board Resolution and MOA issuance have been waived.

The new incentives include facilitating the process of obtaining general trading licenses for new investors by having the capital requirement from AED1 million to AED500,000. It has also allowed its member companies to be structured as a Limited Liability Free Zone Company, in a bid to provide more flexibility in business setup, licensing and operation.

DAFZA has waived license expiry fines in an effort to relax the terms of license renewal. Allowing the restoration of legal records and licenses, the decision will help investors renew their expired license without paying any late renewal fines.

This reflects the authority's constant support for the growth of business sectors and its commitment to remove all the obstacles faced by them in order to develop the economy and create a competitive, investment-friendly business environment.

It has also launched a restructuring process of free zone licenses and related fees.

This will enhance the setup and operation experience for investors who wish to set up in the free zone by offering them greater flexibility in choosing the business and service activities that best correspond to the nature of their work.

Seeing the number of economic activities which are over 2,000 across 18 major sectors, the new license structure will be in line with ISIC Rev 4, the UN benchmark for classification of economic activities. The new license structure will be introduced to new investors and current customers at the end of Q3 2018.