Free zones and industrial zones in the UAE are where manufacturers, traders and logistics firms lease plots, warehouses and offices under a free zone or mainland licence. This page compares the main industrial free zones such as JAFZA, KEZAD, SAIF and RAKEZ with onshore industrial areas, explains how licensing, customs duty and mainland sales differ as of 2026, and lists the setup and zone service providers below.
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A UAE free zone is a designated area with its own licensing authority, where companies can be fully foreign owned and import goods with 0% customs duty while the goods stay in the zone. An industrial zone or onshore industrial area is ordinary mainland land set aside for factories, workshops and warehouses, licensed by the emirate's economic department. Both sit within the industrial real estate and rental sector, and the choice between them shapes your licence, customs position and market access.
As of 2026, the government portal u.ae lists free zones in all seven emirates, around 37 in total, from media and finance zones to the industrial and logistics zones that matter to manufacturers. The services offered around them fall into four groups.
| Service | Typical use | Key point to check |
|---|---|---|
| Free zone company setup and licensing | Forming an FZE, FZ Co or branch to trade, manufacture or provide services in a zone | Licence activities allowed, legal form, visa quota tied to facility size |
| Industrial plots in free zones and onshore areas | Building a factory, tank farm or fabrication yard on leased land | Lease term, permitted use, power and utility connection, build timeline |
| Logistics parks and ready warehouses | Distribution, bonded storage, re-export near ports and airports | Customs status of the unit, clear height, yard and dock access |
| Economic zone services | Customs documentation, permits, visas and authority approvals inside a zone | Which approvals the zone handles and which need federal or emirate bodies |
For the buildings themselves, see industrial properties for lease; for project kit and site cabins, see equipment rental and modular and temporary structures.
For manufacturing, trading in goods and logistics, the zones most buyers shortlist are the ones tied to a seaport or cargo airport. The u.ae list includes:
Onshore, long-established industrial areas such as Mussafah in Abu Dhabi, Al Quoz and the Jebel Ali industrial areas in Dubai, and the Sharjah industrial areas house contractors, fabricators and suppliers that sell mainly into the UAE market and want a mainland licence.
The main differences are ownership, customs duty and who you can sell to. The u.ae portal summarises them as follows, as of 2026.
| Point | Free zone company | Mainland company |
|---|---|---|
| Licensing authority | The free zone authority | The emirate's Department of Economic Development |
| Foreign ownership | Can be fully foreign owned | Depends on activity under federal and emirate rules |
| Customs duty | 0% on goods imported into the zone; duty applies only when goods move into the mainland | Duty paid on import into the UAE |
| Selling in the UAE market | Through a licensed mainland distributor, or by opening a mainland branch or company | Direct across the UAE, including government bodies |
| Corporate tax | Existing free zone incentives kept by compliant businesses that do not conduct business in the mainland | 9% on taxable income above AED 375,000 (financial years from 1 June 2023) |
| Licence timing | Typically within 14 working days of approval, per u.ae | Varies by emirate and activity |
In practice, a free zone suits a company that imports, holds, processes and re-exports goods, or that serves the UAE market through distributors. A mainland licence suits a company that installs, maintains or sells directly to UAE clients and government projects. Many groups run both: a free zone entity for regional trading and a mainland entity for local contracts. Tax treatment depends on the details of each structure, so take professional advice.
Climate affects what a plot will cost to operate more than which zone it is in. Cooling load, power supply and the condition of coastal land are the points to check before you commit.
Inside a free zone, the zone authority issues the licence and handles many permits, but federal rules on customs, tax and product conformity still apply. Onshore, the emirate's economic department, municipality and civil defence each have a role.
Start with your activity and customers, then shortlist zones that license that activity near the port or airport you will use. Ask each zone for its licence fees, lease options, visa allocation and what it needs before goods can cross to the mainland, then compare total cost over the lease term.
Setup agents and business service firms handle applications, document attestation, bank account support and visas; they work alongside the zone authority rather than replacing it. Ask whether the agent is registered with the zone, what is included in the fee, and who owns the licence once issued. If you need quotes from several providers, post your requirement with your activity and space needs. The industrial supplier sourcing guide covers how to check a company's licence.
Cost depends on the zone, the licence type and activity, the number of visas, and whether you take a desk, a ready warehouse or a plot to build on. Timing depends on approvals: a trading licence can be fast, while an industrial activity on a new plot needs building permits, civil defence approval and utility connections. Ready warehouses in logistics parks shorten the start date, so many manufacturers lease one first and build later.
