The UAE has established a number of free zones, all at a different stage of development and allowing different activities to be conducted within their borders. Establishing a business entity in one of the numerous UAE Free Trade Zones (FTZs) can be an attractive option for foreign investors and businesses. Whilst the facilities and licencing requirements differ between free zones they all share common features:
- 100% Foreign ownership
- Import and export exemptions
- 100% repatriation of capital and profits
- No corporate taxes for 15 years renewable
- No personal income tax
- Assistance with labour recruitment, visa applications, housing

The key limitation with the free zone entity is that it is generally permitted to conduct business solely within its free zone and is limited to the specific activities written on the Trade license.
In order to engage in activities within the UAE the entity will have to engage the services of a local commercial agent or distributor that will be entitled to earn commissions on any sales.