Conducting foreign trade
Running a business in the UAE’s free zone is designed to be simple, flexible, and investor-friendly. Free zones offer a streamlined environment where companies can be fully owned by foreign investors, with easy setup procedures and minimal administrative complexity.
Conducting foreign trade
Conducting foreign trade as a free zone company in the UAE is one of the main advantages of setting up in a free zone. The system is designed to make international import, export, and re-export activities fast, cost-efficient and straightforward.
Some of the key features of doing business in free zones are:
1. Freedom to trade internationally
Free zone companies can:
- import goods from outside the UAE
- export goods to international markets
- re-export goods through the UAE to other countries.
There are generally no restrictions on foreign trade activities, as long as the goods do not enter the UAE mainland market without proper customs clearance.
2. Customs and duty benefits
One of the biggest advantages is:
- 0 per cent customs duty on goods imported into the free zone
- ·no customs duty on goods stored in the free zone for re-export
- goods only become subject to the UAE customs duty if moved into the mainland market.
Read about Custom Clearance in the UAE.
3. Free zone as a transit hub
Free zones act as logistics gateways, offering:
- strategic location near ports and airports
- customs-bonded warehouses
- efficient clearance procedures
- fast re-export capabilities.
This makes the UAE a key hub for global trade and redistribution.
Restrictions on mainland UAE trade
Free zone companies operate under a different legal framework than mainland businesses, as they are considered outside the UAE mainland jurisdiction.
While they can trade freely within the free zone and internationally, access to the UAE mainland market is regulated. To sell goods or services locally, a free zone company must either work through a licensed mainland distributor or establish a mainland branch or company.
Direct sales in the mainland are generally not permitted unless the company obtains the required mainland licences or approvals.
Read:
- Federal Decree Law No. 32 of 2021 on Commercial Companies
- Executive Council Resolution No. 11 of 2025 Regulating the Conduct of Free Zone Establishments’ Activities within the Emirate of Dubai (PDf, 1 MB)
Useful links
- Department of Economic Development – Abu Dhabi
- Invest in Dubai
- Free Zone Persons – Corporate Tax Guide – Federal Tax Authority (PDF, 1.4 KB )
- Laws and Rules – DFSA
Complying with laws
As a responsible entrepreneur, you are obliged to comply with laws that
- govern your business such as those relating to food, education or medical
- Federal Law No. 8 of 2004 Concerning Financial Free Zones
- protect labour rights, consumer rights and intellectual property rights
- protect health and environment, and ensure safety
- govern the free zone in which your business is set up in.
Updated on:
16 Apr 2026
