Dubai Integrated Economic Zone (DIEZ) has been established as a powerhouse free zone empowering three leading free zones in Dubai, Dubai Airport Free Zone, Dubai Silicon Oasis and Dubai Commerce City.
These three zones will now operate under the supervision of the Dubai Integrated Economic Zones Authority starting on January 1, 2022. HH Sheikh Mohammed bin Rashid Al Maktoum stated the creation of the integrated body is part of Dubai’s efforts to introduce frameworks for
“further improving services provided to businesses and investors, which in turn will help accelerate economic growth”.
More than 5,000 international firms, covering 20 key economic sectors and employing 30,000 people from across the world, will operate under the Dubai Integrated Economic Zones Authority, the media office said. Economic activity regulated by the new authority generates 5 per cent of Dubai’s gross domestic product, it added.
Tax Exemptions
Companies and individuals licensed in the integrated economic zones under the authority are exempted from all taxes — including income tax — for 50 years, effective from the date of the new law. This exemption period can be renewed for a similar period through a decision issued by the Dubai Ruler.
All subsidiaries of the Dubai Integrated Economic Zones Authority and companies or individuals licensed by the authority are exempted from restrictions on repatriation of capital, profits and salaries in any currency and to any destination outside its zones. This exemption is valid for 50 years, renewable for a similar period by a decision issued by the Dubai Ruler.
Furthermore, the funds of licensed companies and their employees will not be subject to nationalisation or restricted ownership.
Partnership with the Private Sector
Sheikh Mohammed highlighted that the private sector is a major partner in Dubai’s development journey over the next 50 years. “We remain committed to strengthening our partnership with the private sector and making our business environment more attractive, both of which are key to sustained growth in our new phase of development,” the Dubai Ruler said.
Dubai, the Middle East's financial, transportation and trading hub, attracted Dh24.7 billion ($6.7bn) in foreign direct investment in 2020 through 455 projects, according to data from the Dubai FDI Monitor released in April by the Dubai Investment Development Agency (Dubai FDI), an agency of Dubai Economy.
The new initiative is part of efforts to make Dubai the destination of choice for global investors and a major focal point for international commerce
Are you looking to incorporate a free zone company in the UAE? Contact us for a complimentary consultation and we will advise you which free zone jurisdiction is the best for your business requirements.