UAE Free Zones Attracting New Investors A Post-Pandemic Analysis

UAE Free Zones Attracting New Investors: A Post-Pandemic Analysis

There are forty-plus active free zones that provide foreign investors with affordable options of company formation in the UAE. All the free zones strive towards creating a favourable climate for new investors with attractive packages and lower fees at a time when economic uncertainty persists across the world. In the light of the new laws designed to boost the landscape of business setup in the UAE, some free zones have reported an increase in the number of new company registrations and business expansion amidst the pandemic.

This article offers you a peek into the free zones that fared well despite the uncertainties created by the COVID-19 pandemic. You can also come to know how these free zones stay appealing to the new businesses. Consult with the best business consultants in Dubai, if you wish to open a company in any of these free zones. Now, let’s move on to have a brief analysis of the UAE free zones that posted commendable growth amidst the pandemic.

Dubai Multi Commodities Centre Breaks Records

Dubai Multi Commodities Centre (DMCC), the flagship free zone of the Dubai Government, marked its best performance in seven years in the first quarter of 2021. The free zone welcomed 216 new businesses to its Free Zone in April 2021. Despite the pandemic, DMCC succeeded in attracting a wide range of entrepreneurs, SMEs and MNCs to initiate business setup in Dubai with its world-class facilities and business support services.

The ‘Jump Start’ package for SMEs and start-ups, offers discounts of up to 24% on trade licenses and provides Flexi desk solutions, UAE residency visas, flexible payments and access to new business opportunities. The package is available in one-, two- or three-year options. The Prime Plus Package for larger businesses comes with a three-year company license, flexible payments, dedicated support through the application submission and a 20% discount while applying for an additional license.

The new price packages saw DMCC increase its engagement with key markets such as China, UK, France, India and others. Further, interest from Israeli investors for business setup in the UAE remains extremely strong. The strong growth is likely to continue as the free zone has launched new initiatives like DMCC Cacao Centre and the DMCC Crypto Centre that targets cryptocurrency businesses.

Education, Health & Tech Investors Flock to Ajman

Ajman Free Zone recorded a 33% growth in the number of new companies registered during the first quarter of 2021, as opposed to the same period in 2020. Now, the total number of new companies incorporated stands at 492 during the first three months of 2021, compared to 269 companies in the same period last year.

The education sector, which includes training, educational counseling and freelancing, posted 39% growth. With this, the total number of academic-related institutions and research centres now exceeds 170. The technology sector also achieved a growth of 23%, as a result of proactive investment efforts in the sector as well as the Ajman 2021 vision. The number of new healthcare businesses witnessed a 34% growth on account of advanced infrastructure, facilities, and a strategic location. Investors inspired by Ajman Free Zone’s growth story may consult with business setup consultants in the UAE.

Dubai Silicon Oasis Posts High Revenue Growth

Dubai Silicon Oasis (DSO) posted total revenue of AED 544.7 million, marking a surge of 2.7% from 2019. The free zone attracted 1,731 new companies in 2020 that testifies the global appeal of DSO’s facilities and startup ecosystem. The total number of companies registered at DSO at the end of 2020 was 4,936, a 54%increase from 2019.

Being an integrated technology park, businesses in the tech sector posted the highest growth in the said period in DSO. One of the reasons for this growth is attributed to the inclusion of the integrated free zone technology park as one of the five urban centres as part of the larger Dubai 2040 Urban Master Plan. Further, DSO recently opened its AED 1.5 billion Dubai Digital Park (DDP) project, which spans an area of 150,000 square meters.

Many MNCs have started setting up their headquarters in DDP since its inauguration, resulting in 80% occupancy rates at its office spaces and boutique buildings. The inauguration of DDP has proven to be another reason why DSO continues appealing to foreign investors. Business setup consultants in Dubai can help you get a DSO business license without any hassle.

DAFZA Aces the Foreign Trade Game

Dubai Airport Free Zone (DAFZA) stands as a prominent free zone that contributed immensely to boost the landscape of business setup in Dubai, UAE. In 2020, the free zone’s foreign non-oil trade grew over USD 32.4 billion. DAFZA accounted for 10% of Dubai’s non-oil foreign trade and 25% of the total trade in free zones in Dubai in 2020.

China was the top contributor to the free zone’s export growth followed by Iraq and India, the US, Switzerland etc. Foreign investors flock to DAFZA especially because it had launched a series of economic stimulation packages to support MNCs and SMEs during the pandemic across all sectors. The incentive packages proved their value in ensuring companies have the flexibility to mitigate the challenges of the pandemic, in line with Dubai’s approach and objectives.

Set up a Business in UAE Free Zones through Jitendra Business Consultants

The dynamics of business setup in the UAE is growing strong as evidenced by the number of new companies registered in the free zones. Despite the pandemic, major free zones achieved commendable growth proving that free zones stay appealing to foreign investors. The business setup packages, new licenses, facilities and incentives are the reasons cited for the growth. Foreign investors who seek to set up a business in free zones need not worry about the procedures as business setup consultants in the UAE such as Jitendra Business Consultants (JBC) can help you.

JBC is a consultancy powerhouse that boasts of highly qualified company formation specialists, auditors, accountants and trademark agents. Be it obtaining a license, drafting an MOA, processing visas or opening a bank account, JBC is at your disposal. Apart from helping you open a company in Dubai, JBC undertakes services including assessing your Economic Substance Regulation (ESR) status, preparing and maintaining Real Beneficiary Register (RBR), and enhancing Anti-money Laundering (AML) compliance. Achieve your business goals fast with JBC’s bespoke business setup services in Dubai, UAE.