The Dubai Airport Free Zone Authority (DAFZA) is one of the most sought-after free zones in the United Arab Emirates (UAE) and has been a hub for small and medium-sized enterprises (SMEs) for decades. The benefits of operating within DAFZA have been instrumental in attracting companies from around the world to set up their operations in Dubai. Lemon Consultech, a leading global business consultancy group, provides expert advice and guidance to SMEs looking to establish their business within DAFZA. In this blog, we will explore the benefits of DAFZA for SMEs in the UAE.

Affordable Licensing, Registration and Other Operation Costs

The free zone offers a simplified and cost-effective registration process for SMEs, which reduces the administrative burden and costs associated with setting up a business in the UAE. Additionally, DAFZA has a minimum share capital requirement of only $1,000, which is significantly lower than other free zones such as Dubai Multi Commodities Centre (DMCC), which has a minimum share capital requirement of $50,000. This lower requirement makes it easier for SMEs to set up their business in DAFZA and reduces the financial burden associated with starting a new venture. Overall, these cost savings can help SMEs to allocate their resources more efficiently, allowing them to focus on growing their businesses and achieving their goals.

In 2018, DAFZA announced a series of cost reductions and incentives aimed at supporting SMEs and attracting new businesses to the free zone. These measures included:

• Waiving fines for late renewal of licenses
• Reducing fees for license renewals
• Waiving security deposit requirements for new businesses
• Offering discounted rental rates for new SMEs

These cost reductions demonstrate DAFZA’s commitment to supporting SMEs and creating an environment that is conducive to business growth and success. By reducing costs and offering incentives, DAFZA has become an increasingly attractive destination for SMEs looking to establish their business in the UAE.

The Strategic Location

DAFZA is located in the heart of Dubai, one of the world’s most vibrant and fast-growing cities. The free zone is strategically located within proximity to the Dubai International Airport, Jebel Ali Port, and key highways, making it an ideal location for SMEs that require easy access to transportation and logistics. Additionally, DAFZA is just a few minutes away from major business hubs such as Dubai Silicon Oasis, Dubai International Financial Centre (DIFC), and Dubai Knowledge Village, which makes it easier for businesses to network and collaborate with other firms.

100% Foreign Ownership

One of the significant benefits of DAFZA is that it allows SMEs to have 100% foreign ownership, meaning that they can fully own and operate their business without the need for a local sponsor or partner. This feature provides SMEs with complete control over their operations and reduces the administrative burden of dealing with a local partner. Additionally, DAFZA offers streamlined visa processing and permits, making it easier for SMEs to hire and relocate employees from around the world.

Tax Exemptions

Another significant advantage of operating within DAFZA is the tax exemptions it offers. SMEs that operate within DAFZA are exempt from corporate and personal income taxes, import and export duties, and value-added tax (VAT), unlike DMCC which is not a designated free zone for the purposes of VAT. This exemption provides significant cost savings for SMEs, allowing them to invest more in their operations and grow their businesses.

State-of-the-Art Infrastructure

DAFZA offers SMEs access to state-of-the-art infrastructure, including modern office spaces, warehouses, and logistics facilities. The free zone’s infrastructure is designed to cater to the unique needs of SMEs, providing them with the necessary facilities and resources to conduct their business efficiently. Additionally, DAFZA provides 24/7 security and safety measures, ensuring that businesses and their assets are protected at all times.

Networking Opportunities

DAFZA offers numerous networking opportunities for SMEs through its various events and initiatives. The free zone hosts regular networking events and trade shows, providing SMEs with the opportunity to connect with other businesses in the region and showcase their products and services. Additionally, DAFZA provides access to business support services, including legal and financial advice, to help SMEs navigate the complex regulatory environment of the UAE.

Conclusion

DAFZA is an ideal location for SMEs looking to establish their business in the UAE. The free zone’s strategic location, 100% foreign ownership, tax exemptions, state-of-the-art infrastructure, and networking opportunities make it a highly attractive destination for SMEs from around the world. Lemon Consultech, with its expertise in global business consultancy, can provide SMEs with the guidance and support they need to set up and operate their business in DAFZA successfully. Contact us today to learn more about how we can help your SME take advantage of the benefits of DAFZA.