Dubai Airport Freezone (DAFZ) – Business Opportunities and Benefits
Dubai Airport Freezone (DAFZ) is considered one of the most reputable and oldest free zones across the Emirates of the United Arab Emirates (UAE). The year 1996 marked the start of DAFZ as a business and service centre, touting the Dubai International Airport as its immediate neighbour. Along with world-class free zone services, DAFZ integrates business soft-landing facilities and A-class advanced infrastructure. The enriched free zone services coupled with its robust infrastructure make setting up free zone companies in Dubai easier. The area aids in providing effective optimisation of courses for small to medium enterprises (SMEs) along with foreign direct investment (FDI). Given the proximity of DAFZ to the Dubai International Airport, it serves as a focal point for businesses dealing with trade, logistics, technology, etc.
Key Benefits of Dubai Airport Freezone
Because of such factors, DAFZ is the most promising location to pursue your investments. Below is a list of some of the perks of DAFZ:
1- 100% Foreign Ownership
Not to forget that DAFZ has been the fastest-growing free zone. A major reason for this is that it offers complete foreign control of their investments. They are not required to have a local sponsor, which is the case with the UAE mainland. This benefits the investor as they gain full control over the products and their profit.
2. Tax Exemptions
DAFZ provides a comprehensive tax-free business environment that includes:
0% corporate tax – Businesses operating in the free zone do not pay corporate taxes.
0% personal income tax – Business owners and staff do not pay personal income tax.
Exemption from import and export duties – This is especially useful for trading and logistics companies.
3. Strategic Location
With its proximity to the Dubai International Airport, DAFZ offers:
- Rapid and reliable access to international markets.
- Lower transportation costs and time for logistics companies.
- Enhanced accessibility for international clients and suppliers.
4. Quick and Simple Business Setup
DAFZ adopts a minimal red tape policy which fosters smooth company registration. These include the provision of business setup services, legal aid, and government service centres, all within the free zone, providing a one-stop shop registered and streamlined service.
5. Advanced Infrastructure and Facilities
Dubai Airport Freezone (DAFZ) offers vast modern office spaces, warehouses and commercial buildings all fitted with the latest technology. To enable seamless business operation, they are provided with advanced communication systems, high-speed internet, and security services 24 hours a day.
Business Activities Done in DAFZ
With more than 20 sectors represented, DAFZ has over 2000 multinational companies in its database. Some of the major firms within DAFZ are:
1. Information technology and telecommunications
To provide for the Middle East and other global markets, many international IT and telecom firms have set up branches in DAFZ.
2. Logistics and Freight Services
Because of its proximity to Dubai International Airport, logistics and freight and even supply chain businesses experience uninterrupted seamless connectivity.
3. Pharmaceuticals and Healthcare
The free zone supervises the operation of pharmaceutical production and medical technology companies to ensure standards of healthcare innovation.
4. Aerospace and Aviation
Aircraft maintenance and parts suppliers as well as many other aviation companies have emerged in Dubai Airport Freezone (DAFZ) due to its location next to the airport.
5. Jewellery and Luxury Goods
DAFZ has been chosen by many jewellery manufacturers and high-end brands due to its market facilities and accessibility.
Types of Licences in DAFZ
Different industries and scopes of business activity are catered for. Dubai Airport Freezone (DAFZ) offers different types of business licences.
1. Trade Licence
DAFZ has a license for each company that deals with the import, export, distribution, and storage of goods within the free zone. This license is best suited for trading enterprises involved in the purchasing and selling of consumer items, gadgets, and electronics among other businesses.
2. Service Licence
As with other consultants, IT firms, and professional services companies, these service providers require a service licence to operate legally within DAFZ.
3. Industrial Licence
An industrial licence is mandatory for businesses involved in manufacturing, light industry, or product assembly. Such businesses are provided with warehouses and industrial units by Dubai Airport Freezone (DAFZ).
4. E-Commerce Licence
With increasing demand for online shopping, DAFZ offers e-commerce licences to businesses and entrepreneurs operating digital platforms for selling goods or providing internet-based services.
5. General Trading Licence
This license is issued to businesses for trading in many product categories under one license. Thereby suiting companies that are engaged in international trade on a larger scale.
6. Dual Licence with DED
One of the distinguishing features of DAFZ is the possibility of obtaining a dual licence. It permits businesses to operate both within the free zone and on the UAE mainland without a physical office on the mainland.
Business Setup Process in Dubai Airport Freezone (DAFZ)
The process of establishing a business in DAFZ involves the following steps.
Selecting the licence type according to the decided business activity. Remember to select the business type and the appropriate licence.
Submit the Application – Fill in the business application form and attach the required documents.
Obtain Initial Approval – The free zone authorities will assess and accept your application.
Sign the Lease Agreement – If office or warehouse space is needed, a lease agreement with DAFZ should be signed.
Complete the Registration and Licensing Process – Upon payment of necessary fees, the business licence will be issued, activating operations.
Conclusion
As one of the most sophisticated business hubs in the UAE, Dubai Airport Freezone (DAFZ) is notable for its abundant opportunities for businesses and entrepreneurs willing to venture into the Middle East. DAFZ continues to be preferred by companies from different sectors because of its infrastructural facilities and favourable climatic conditions, tax advantages, and other world-class industry services. Investors, startups, and established corporations alike can find all the necessary resources, infrastructure, and support for shrewd and scalable businesses.
FAQs
1. What are the main benefits of setting up a business in DAFZ?
Some of the benefits are: state-of-the-art infrastructure, strategic location at the heart of Dubai International Airport, tax exemptions, and 100% foreign ownership services offered. Also, simplified procedures for business formation.
2. Can a company in DAFZ do business outside the free zone?
Businesses within DAFZ can operate internationally. However, to do business within the UAE mainland, they must either work through a local distributor or acquire a dual licence with the assistance of the Department of Economic Development (DED).
3. What is the time required to complete the business setup process in DAFZ?
The setup process in DAFZ is streamlined and usually takes a couple of days to two weeks to complete, based on the specific business type and the necessary approvals.
4. Which business sectors are the most successful in DAFZ?
Due to the supportive setup, captive market, and proximity to the airport, companies in logistics, trading, IT, telecommunications, aviation, pharmaceuticals, manufacturing, and even luxury goods do well in DAFZ.
5. Is having an office in DAFZ a prerequisite?
Yes, the majority of businesses operating within the free zone will need to have a physical office or warehouse. Nonetheless, the presence of flexi-desk and co-working options makes leasing more affordable for startups and small businesses.
