The government of Dubai is actively exploring the application of ‘common law’ within the emirate’s free zones to bolster the city’s business ecosystem and enhance its global appeal and efficiency.
The potential adoption aims to complement the emirate’s future-forward strategy to foster a dynamic, responsive legal framework that supports investors’ ambitions and bolsters global competitiveness.
The initiative supports the economic objectives outlined in the Dubai Economic Agenda D33, which aims to position Dubai among the top three global economic hubs.
Last year, the Dubai Free Zones Council forecasted that the contribution of these trade zones to the emirate’s GDP is on track to reach Dhs250bn by 2030.
UAE free zones
According to the UAE Ministry of Economy, the country offers investors more than 40 multidisciplinary free zones, in which expatriates and foreign investors can have full ownership of companies. “These zones are characterised by their highly efficient infrastructure, and distinct services that facilitate smooth workflows, saving businesses considerable time and effort.”
Businesses operating in these zones are also exempted from the 9 per cent corporate business tax introduced on June 1.
The Ministry of Finance said qualifying entities in the country’s economic free zones – which export tens of billions of dollars of goods to neighboring states – are subject to a zero per cent rate, even when dealing with the mainland on certain strategic activities such as manufacturing, goods processing and logistics services.