Dubai South rolls out more incentives for free zone firms

Dubai: Dubai South has introduced a fresh round of incentives for companies operating within its free zone, as part of a broader push to sustain business activity and ease cost pressures amid the ongoing crisis.

The measures include support for new company formation, assistance with licence renewals and exemptions from late renewal fines.

These measures come as authorities across Dubai seek to reinforce the competitiveness of the emirate’s free-zone ecosystem.

The initiative is aligned with efforts led by the Dubai Free Zones Council, which has been working to strengthen the resilience of free zones as businesses navigate shifting economic conditions, including softer global demand and ongoing geopolitical uncertainty.

“Dubai South remains committed to supporting our business community by introducing measures that facilitate growth and continuity,” said Nabil Al Kindi, Group CEO of Dubai South.

“This latest initiative builds on our ongoing efforts to provide support across our ecosystem, including the recently announced measures for SMEs at the Business Park,” he added, referring to earlier targeted support for smaller firms.

The move also reflects a wider trend across the UAE, where free zones have been adjusting fee structures, offering flexible payment plans and introducing targeted incentives to retain tenants and drive occupancy.

For businesses, particularly SMEs and new entrants, administrative costs such as licensing fees and penalties can quickly add up. Waiving late renewal fines and streamlining formation processes could therefore provide immediate, if incremental, relief.

Dubai South, which houses a mix of logistics, aviation, commercial and residential developments, has been positioning itself as a long-term growth hub. It is located very close to Al Maktoum International Airport and Expo City Dubai.

Al Kindi said the latest measures align with the broader economic direction of the UAE and fall under the “Dubai South in Motion” initiative, which aims to sustain business momentum and reinforce investor confidence.

Free zones step up for businesses

However, the announcement comes at a time when competition between free zones in the region is intensifying, with operators increasingly rolling out incentives to differentiate themselves and secure a larger share of new business setups.

Recently, Dubai South Properties has awarded a Dh 2 billion contract to develop multiple phases of the 'Hayat' project, a luxury master-planned community spanning 10 million square feet.

Construction is set to commence in the second quarter of 2026, with the initial phases expected to be completed by 2028.

Dubai South has also introduced a new support package for small and medium-sized enterprises operating within its Business Park.

The initiative comes shortly after the Dubai government unveiled a Dhs1bn economic incentives package to support businesses and individuals, with measures taking effect from April 1 for a period of three to six months.