Free zones drive the UAE's business landscape

The UAE has drawn strong interest from global investors across various sectors, creating a thriving business ecosystem driven by robust infrastructure and pro-business policies.

According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2024, the UAE ranked second globally in greenfield FDI project announcements in 2023, with 1,323 new projects, marking a 33 per cent increase from the previous year. FDI inflows also saw a significant rise of 35 per cent, reaching $30.688 billion (Dh112.70 billion) from $22.737 billion in 2022.

A key enabler of this success is the UAE’s network of over 45 multidisciplinary free zones, which provide critical infrastructure and support for businesses, particularly SMEs and entrepreneurs, consolidating the country’s position as a leading investment destination.

These free zones play a crucial role in the UAE’s economy, providing businesses with the foundation they need to expand and succeed. Among these, Jebel Ali Free Zone (Jafza), the UAE’s oldest free zone, stands out as a cornerstone of this success.

Home to thousands of businesses, Jafza is known for its strong ecosystem and efficient business set-up solutions. The free zone attracts significant foreign direct investment, reinforcing its importance in the region’s economy.

“We are proud to play a key role in Dubai’s growth as a global trade hub. Today, with nearly 11,000 companies in Jafza and Dh620 billion facilitated in trade annually, we remain committed to fostering an environment where businesses can thrive,” says Abdulla Bin Damithan, CEO and Managing Director, DP World GCC. As the flagship free zone of DP World, Jafza is central to Dubai’s success as a leading global trade and business hub.

“Our investments in infrastructure, seamless multimodal connectivity and digital platforms are designed to simplify trade and logistics for everyone who operates here,” Damithan adds.

Optimising operations for global investment

Innovation is at the core of free zones, driving continuous improvements to simplify the business set-up process so that companies can grow unhindered. By optimising operations and offering comprehensive support, these zones provide an efficient and appealing environment for global investors and start-up entrepreneurs.

Ajman Free Zone, a key driver of entrepreneurial growth in the UAE since 1988, has launched several initiatives to streamline operations and support the growth of start-ups and SMEs.

“Our recent efforts include the one-click licence issuance system, which shows our commitment to simplifying the business set-up process,” says Zubair Makhdoomi, Director of Sales, Free Zones Authority of Ajman.

This innovative approach allows entrepreneurs and businesses to quickly obtain necessary licences, essential for operations, residency, and banking.

“We’ve streamlined these procedures by integrating them seamlessly with the required government and compliance bodies, ensuring a hassle-free experience that accelerates the set-up process and encourages more businesses to establish themselves in Ajman,” Makhdoomi says.

In Ras Al Khaimah, RAKEZ provides comprehensive support across industries, from manufacturing to technology, helping businesses succeed at every stage.

“Through simplified processes, global connectivity, and comprehensive after-support, we empower companies to scale efficiently,” says Ramy Jallad, Group CEO, RAKEZ.

“This continued focus on helping businesses grow, along with the diversity of services we offer, positions RAKEZ as a leading template for peer organisations aiming to attract international investors and drive sustainable economic growth,” adds Jallad.

Meanwhile, Meydan Free Zone in Dubai has developed unique models and initiatives to drive entrepreneurs to success.

Meydan Free Zone’s success is built on fulfilling the entrepreneur’s vision by providing value throughout their journey, says Hamed Ahli, Head of Meydan Free Zone.

“This is primarily done through three key pillars: attraction, servicing, and asset development and management,” says Ahli.

Sector-specific support

UAE free zones cater to a wide range of industries, offering specialised infrastructure, logistics and warehousing facilities, targeted incentives, and dedicated support services. From general business hubs to sector-specific zones, investors can choose the right environment to align with their industry needs.

For example, Ajman Free Zone is tailor-made for start-ups and SMEs, especially in sectors like retail, technology, trading, and light manufacturing.

“Located strategically, we offer targeted support that simplifies the start-up journey, making licensing and visa processes not only easy but also economical. Our advanced infrastructure and continual digital updates provide a dynamic environment tailored for business growth,” says Makhdoomi.

Companies at Ajman Free Zone also benefit from critical services like banking and finance, ensuring they have everything necessary to expand their businesses swiftly and successfully. “Our dedicated approach ensures businesses not only launch but thrive,” adds Makhdoomi.

Meanwhile, Sharjah Media City (Shams), targeting sectors such as media, technology, e-commerce, and education, has launched a range of innovative initiatives to fuel the growth of start-ups and SMEs.

“This year, we launched exclusive business set-up packages, offering cost-effective licensing solutions and flexible payment plans tailored for entrepreneurs,” says Rashid Abdullah Al Obad, Managing Director, Shams.

In 2025, the free zone plans to strengthen its connections and add more value for clients by partnering with companies that offer exclusive services.

“These collaborations aim to help our entrepreneurs thrive by enhancing their access to resources, expertise, and growth opportunities,” says Al Obad.

Tech-enabled innovation

Technology integration is key to driving efficiency in UAE free zones, enhancing every aspect of their operations. By investing in advanced technologies like artificial intelligence (AI), digital tools, robotic systems, and data analytics, free zones align with global business standards.

These innovations streamline processes, automate tasks, and provide valuable insights, making the investor journey smoother and helping businesses establish and grow more easily, while supporting overall economic development.

Explaining how RAKEZ leverages technology to optimise its operations, Jallad highlights that AI plays a central role in automating key tasks within the free zone. This includes document processing, visa form completion, identity validation, and data cross-checking.

“AI-driven analytics help us predict client churn and improve renewal rates, while in digital marketing, AI optimises campaigns in real time to boost lead generation and conversions. Additionally, the application of robotic process automation (RPA), combined with AI, allows us to automate routine tasks, classify data, and resolve exceptions quickly. Besides streamlining operations, this also frees up our team to focus on higher-value client interactions, making the overall process smoother and more efficient for businesses at RAKEZ,” explains Jallad.

Meanwhile, Ajman Free Zone is evolving to meet global market demands through extensive digital transformations and eco-friendly initiatives.

“This forward-thinking approach ensures our infrastructure and services remain at the forefront of innovation. These developments are designed not just to attract new investment but also to reinforce the UAE’s reputation as a premier global investment hub,” says Makhdoomi.

“By cultivating a business-friendly atmosphere that encourages innovation and minimises administrative hassles, Ajman Free Zone is set to draw and support a diverse array of enterprises, driving economic growth and diversification in the region,” he adds.

Scale-up support for SMEs

Furthermore, most UAE free zones go beyond providing business set-up and infrastructure support by facilitating networking opportunities and offering mentoring programmes. Experts highlight that these initiatives are vital for start-ups and SMEs, especially during their scale-up phase.

Dubai’s fully digital free zone, Meydan Free Zone connects its community by offering new opportunities and encouraging networking.

“These interactions extend beyond business meetings to include events like the Dubai World Cup, the world’s richest horse race, as well as golf, cycling, and tennis,” says Ahli.

Similarly, Sharjah Media City (Shams) facilitates networking opportunities through workshops, webinars and events to connect emerging businesses with seasoned mentors.

“Our mission is to create a thriving ecosystem where businesses can excel with minimal barriers,” says Al Obad.

Driving long-term growth

Free zones have been a key driver of the UAE’s growth. With their innovative and forward-thinking approach, they will continue to fuel economic development, increase the inflow of foreign investments, and provide businesses with the support needed to expand and succeed.

Damithan from DP World GCC highlights how Jafza’s ongoing efforts align with these goals and support Dubai’s D33 agenda, which aims to double the size of Dubai’s economy by 2033.

“Looking ahead, we are aligned with Dubai’s D33 agenda and remain committed to boosting trade flows and local manufacturing,” he says.

“As we move forward, we will continue to develop sustainable infrastructure, enhance connectivity, cultivate a culture of innovation, and strengthen our digital capabilities to reinforce Dubai’s standing as a leading hub for global investment,” adds Damithan.