DOING BUSINESS IN THE UAE UMM AL QUWAIN FREE TRADE ZONE - A CASE STUDY

United Arab Emirates

Situated in Southwest Asia,

bordering the Gulf of Oman

and the Arabian Gulf,

between Oman and Saudi

Arabia

Comprises of Seven

Emirates: Abu Dhabi,

Dubai, Sharjah, Ajman,

Umm Al Quwain, Ras Al

Khaimah and Fujairah.

Chosen as one among the

most desired tourist

destinations.

Why U.A.E ?

Strategic geographic location: Strategically located midway

between the Far East and Europe, and between the CIS

Countries and Africa.

Stable Government: Vision of the UAE Leaders and tolerant

lifestyle has been a major factor in attracting foreign

investment.

Transparent legal systems.

Excellent Logistics System.

..are few among the various other factors for the prosperous

developments of the Emirates.

Setting up Business in the

UAE

A UAE entity requires the participation of at-least fifty-one

percent (51%) by UAE Nationals except:

In the Free Zones

As required by law One Hundred Percent (100%) of

ownership by a UAE National

Such licenses are issued by the Department of Economic

Development of the respective emirate

U.A.E – Free Zones Writing Success Stories

Over 38 FTZs in the U.A.E

An integral part of U.A.E’s economy.

Hosts more than 25,000 companies across sectors

100% foreign ownership

No corporate or personal income taxes

Full repatriation of funds

No currency restrictions

No import or export duties and taxes

The Emirate of

Umm Al Quwain

Located in the northern side of the

U.A.E.

Situated immediately after the

Emirate of Sharjah and before Ras

Al Khaimah.

30 minutes from Dubai Intl. Airport

and 20 minutes from Sharjah Intl.

Airport.

It covers an area of approx. 750

square kilometers.

The emirate is ruled by H.H Sh.

Saud bin Rashid Al Mu’alla.

U.A.Q – Free Trade Zone

Established in the year 1987, was initially known as Ahmed Bin

Rashid Port and Free Zone.

As per the Decree No.3 for 2014 of H.H. Sheikh Saud bin Rashid

Al Mu'alla, Ruler of Umm Al Qaiwain, the free zone name has

been changed to "Umm Al Quwain Free Trade Zone" (UAQ FTZ)

in the year 2014.

Features of UAQ FTZ:

No corporate and personal income tax

100% foreign ownership

Full range of business activities permitted

100% repatriation of capital and profits

No currency restrictions

100% import and export tax exemption within the free zone

Simple and fast registration process with excellent customer support

Hi-Tech facilities including office, warehouse and land availability

Strategic location with access to over two-billion customers

Ideal location for SMEs and Micro Businesses

Special concessions at UAQ Port

No restrictions on hiring foreign employees

Modern and Investor friendly rules and regulations

Why UAQ FTZ

Cost saving option for entrepreneurs and manufacturers.

Easy access to U.A.E’s major sea ports and air ports.

In addition to the other benefits, UAQ FTZ offers;

Flexibility and ease of doing business

Customer friendly approach

Cost-effective leasing options for office space and

warehousing

Other excellent investment opportunities

Modern and Investor friendly Rules and Regulations

Types of Entities

FZC (Free Zone Company)

Two or more shareholders who could be individuals or

corporate (maximum up-to 50)

FZE (Free Zone Establishment)

Single shareholder (individual or a corporate)

Br. (Branch)

A Branch of a foreign company or UAE company

Types of Licenses

1. Commercial;

Two types:

A. Commercial License

3 different activities or 10 similar activities

2 Visa eligibility

B. General Trading License

Enables trading in a wide range of products (other than

Alcohol, Tobacco & Armaments)

3 Visa eligibility

Types of Licenses (cont.)

2. Consultancy License;

Entities offering expert or professional advice

Allows 2 similar consultancy activities

2 Visa eligibility

3. Industrial License;

Allows import of raw-materials to manufacture/ process/

assemble/ package the specified products and export the

end-products.

Visa eligibility as per the facility and activity.

Types of Licenses (cont.)

4. Freelance Permit;

Allows individual to operate as Freelance professional

Designed for Technology, Media and Film Sectors

Issued to talent roles, creative roles and selected

administrative roles

1 Visa eligibility

Not a company, just permit

5. Service License;

Service Providers to carry out specified services within the

Free Zone territory

E.g.: Logistics, Courier Services, Car Rentals, Banks

Types of Licenses (cont.)

6. Premium License (Commercial & Consultancy);

Special premium activities (E.g.: Legal, Investment, Real

Estate, Shipping & Logistics etc.)

1 Premium Consultancy Activity / 1 Premium Commercial

activity

3 Visa eligibility

7. Micro Business License (Commercial & Consultancy);

All benefits of Consultancy / Commercial license

No Visa eligibility

General Trading and Premium license categories are not

applicable under the Micro Business

Advantages of UAQ FTZ

Can have up-to 50 shareholders

Multiple license options in the same entity

Easy documentation and Set-Up process from the convenience

of home or office anywhere in the world

No proof of start-up capital required

Incorporation

Process

Minimal documentation

Cost-Effective packages

Licensing : 1-2 working

days

Residence visa assistance

Facilities : Warehouse

Facilities : Warehouse

Ready-to-occupy Warehouses

Size : Starting from 100 Sq. M

Attached - Office space, Pantry Area and Washroom

For Storage requirements and Light industrial units

Power and Water connections available

Within the Free Zone, Port and Customs complex

Facilities : Land

Industrial land for construction

Available in various sizes starting from 2,500 Sq. M

Long-Term lease of 25 years (renewable)

Rent starting from AED 18/Sq. M p.a (depending on size)

Availability of electricity and water

UAQ FTZ

Phase 2

Expansion

UAQ FTZ Phase 2 Expansion

Convenient Connectivity

Beside Sh. Mohammed Bin Zayed Road (E 311)

Area of 2 Sq. Kms. (2 Million Sq. Meters/200 Hectares)

Investment Options for infrastructure development

Provision for long lease period

Community living facilities

Provision for Hotels, Hospitals, Schools, Shopping Malls

Labour Accommodation available within walkable distances &

provision to build own labour accommodations

UAQ FTZ Phase 2 Expansion

UAQ FTZ Phase 2 Expansion

Investment Opportunity

UAQ Free Zone is looking for investors to develop a hotel,

hospital, school, office buildings, residential buildings etc. in

the plots detailed on the previous slide.

Below are the basic details of the proposed offer:

Opportunity: Leasehold interests for 25 years, renewable if

mutually agreeable

Target Price: land rent starting from AED 45 / per Sq. M per year

on a plot area basis

Payment Terms: To be agreed mutually

Assurances: From the government

Umm Al Quwain Free Trade Zone It’s easier than You think . .