Free Zones: The UAE's powerhouse for entrepreneurial growth

Free zones have become a game-changer for start-ups and businesses in the UAE, offering curated packages and services as well as prime logistical advantages to expedite business set-up and growth, said experts on a panel addressing the topic Empowering Growth: The Impact of Free Zones on Entrepreneurial Success, at the UAE Growth & Investment Forum, hosted by Gulf News.

Jigar Sagar, Founder of Triliv Holdings, highlighted the UAE's prime location and infrastructure as a major advantage for businesses dealing in the movement of physical goods. “The UAE is strategically positioned between Africa and the Indian subcontinent,” says Sagar, “and the infrastructure — whether it’s free zones or ports — allows for the seamless movement of goods.” He said the country's leadership, which embraces risk and innovation, plays a key role in fostering entrepreneurship.

Sagar also pointed out that service-based industries, such as technology and AI, benefit from sector-specific platforms like healthcare and e-commerce, under initiatives such as Make it in the UAE. These platforms enable entrepreneurs to collaborate with experienced business leaders, creating a dynamic ecosystem for growth.

Weighing in on recent regulatory reforms, Danish Qazi, Senior Associate at BSA Law, explained that foreign investors could now own 100 per cent of local businesses, which greatly boosts investment. “There’s also been an ongoing discussion about unifying regulations across all free zones, which would make it easier for SMEs to navigate the system,” Qazi added. He also applauded the UAE’s leadership for prioritising transparency, a move that has increased investor confidence in the region.

Qazi called attention to the critical importance of legal expertise when navigating the UAE’s dynamic business environment. “Lawyers play a pivotal role in the success of any business, especially in a transforming economy like the UAE,” he said. With constant regulatory updates, such as changes to labour laws, he stressed upon the fact that businesses must stay informed and seek expert advice to ensure compliance. Qazi also highlighted the importance of airtight contracts, particularly in cross-border transactions, and the need for a strong corporate governance framework to ensure financial compliance.

Neelam Sharma, Managing Partner of Neeja Corporate Services, spoke about the variety of business activities catered to by UAE’s free zones, from media to real estate. “Each free zone provides a well-defined ecosystem,” she said. "For start-ups, the free zones offer attractive packages and support systems, making the setting up process seamless. The result is a fertile ground for new businesses to flourish."

When it comes to balancing growth and stability, Zubair Makhdoomi, Director B2B at the Free Zones Authority of Ajman, highlighted the importance of careful planning. “Entrepreneurs need to be cautious about growing too quickly,” said Makhdoomi. Ajman Free Zone, which is the second oldest in the UAE, has expanded its reach significantly and offers networking events for entrepreneurs to exchange ideas and learn from each other’s journeys. “The UAE is a gateway to markets in Africa, the Far East, and Asia,” Makhdoomi added, emphasising the country's role as a test bed for entrepreneurs.

Sagar from Triliv Holdings also shared his advice for new investors and entrepreneurs looking to set up shop in the UAE. “It’s essential to start with a minimum viable product (MVP) and build from there,” he said. The UAE is the perfect place to test an MVP because success in this diverse market often translates to global success, he remarked. Sagar also urged entrepreneurs to be sensible with cash flow while thinking globally from the start.

One of the biggest pitfalls for new entrepreneurs is neglecting to network, warned Sharma from Neerja Corporate Services. “The venture capital industry in the UAE is still in its infancy, and entrepreneurs need to attend events like this to connect with investors and mentors,” she noted. Managing cash flow and choosing the right free zone for your business activity are also critical for sustained success, she added.

Makhdoomi, from the Free Zones Authority of Ajman underlined the critical role of the UAE's banking sector in facilitating entrepreneurship. “Banks in the UAE have made it easier for new businesses to access financing,” he said. "This has contributed to the growing confidence investors have in the market and it is a trend that will likely continue as more platforms are developed to support the entrepreneurial ecosystem."

Venue Partner of The UAE Growth and Investment Forum

The Venue Partner of the forum is Jumeirah Emirates Towers, which offers an easy access to Emirates Towers metro station. A prefered venue for events and conferences in Dubai, Godolphin Ballroom features beautifully crafted ceilings and crystal chandeliers and can accommodate up to 900 guests.

Sponsors and Partners

Platinum Sponsor of the event is Free Zones Authority of Ajman, Silver Sponsor is Creative Zone and Technology Partner is Tally. Support Partners of the event are Hussain Al Shemsi Chartered Accountant, TMSL, FAME Advisory, Ahmad Alagbari Chartered Accountants, BSA Law, Dhanguard, Hawksford, Fast Business Center, MICS, Triliv, Lawgical Group and Neeja Corporate Services.