Free trade zone is the UAE are special economic zones that enjoy a number of benefits and ensure the diversification of the country’s economy. There are more than 50 free trade zones within the country, 30 of them operating in Dubai. Each of them specializes in a particular branch of business ranging from trade to advertising. They have already established their economical importance within the country. Their next goal is to create a global chain for sustainable growth of country’s economic potential. Free trade zones are also highly crucial for the globalization processes and UAE integration into such.
Free trade zones are continuously developing, growing and extending. Why?
First, they are a great investment tool that guarantees the steady economic development of businesses.
Second, global landscape is constantly changing, so the role of free trade zones in international trade is generally increasing.
Third, the growth of free trade zones is essential for the country’s economy. Free trade zones succeeded to generate 300 billion Dirhams in trade within half a year which is a fairly impressive figure.
The Dubai International Financial Centre crowds the top of the free zones list. It will most likely increase its size by three times in the upcoming ten years, becoming the most celebrated banking center in the region. Its main rival is Abu Dhabi. Originally, the growth of this trade zone was related to investment from European and US companies. However, in the recent years, there has been a certain shift in a landscape towards countries of Latin America, Africa and Asia.
The major part of the region’s growth is still associated with international companies that invest into businesses in the UAE. This is owned to the fact that the UAE is known worldwide for its strategic geographical location and ease of doing business. Innovation is a crucial component in the promotion and success of free trade zones. The recently announced Dubai World Trade Centre Free Zone is the offering a dual licensing option.
Innovation and business development are greatly encouraged within the country. For instance, there soon will be a contest for enterprises with the aim to stimulate the growth of business values in the country. The winning enterprise will be awarded a start-up package.
Free zones are an integral part of the country's economic development. Besides, they secure the UAE’s place in the global trade. They encourage trade and investment, thus becoming the great incentive in sharing skills, expertise and innovation in the UAE and around the globe.