Overview
The Jebel Ali Free Zone (JAFZA) is one of the oldest and largest free zones in the UAE, established in 1985 adjacent to Jebel Ali Port, the largest man-made harbour in the world. JAFZA hosts over 8,000 companies from more than 100 countries and contributes a significant share of Dubai’s total foreign direct investment. The zone is purpose-built for trade, manufacturing, logistics, and distribution operations.
Key Sectors
JAFZA serves companies in logistics and supply chain management, manufacturing, petrochemicals, food and beverage processing, automotive, metals and steel, electronics, and fast-moving consumer goods. The zone’s direct connectivity to Jebel Ali Port and Al Maktoum International Airport makes it a natural base for import-export businesses.
Setup Process
Setting up in JAFZA involves selecting a licence type (trading, industrial, service, logistics, or e-commerce), choosing a facility option (office, warehouse, land plot, or light industrial unit), submitting an application to JAFZA authority, and completing registration. The process typically takes one to two weeks. JAFZA provides a single-window service for licensing, visa processing, and customs clearance.
Costs and Licensing
JAFZA licence fees vary by activity. Trading licences start at approximately AED 15,000 per year, while industrial licences depend on the scale of manufacturing operations. Warehouse lease costs range from AED 120 to AED 250 per square metre annually depending on size and configuration. JAFZA also offers flexi-desk and smart office solutions starting at approximately AED 10,000 per year for businesses that do not require warehouse space.
Benefits
Companies in JAFZA benefit from zero corporate and personal income tax, 100 percent foreign ownership, full repatriation of profits and capital, exemption from import and export duties within the zone, and streamlined customs procedures. The zone’s integration with Jebel Ali Port provides direct quay-to-warehouse logistics capability.
Ownership Rules
JAFZA allows 100 percent foreign ownership for all entity types. There is no requirement for a local sponsor. Companies may be established as Free Zone Establishments (single shareholder) or Free Zone Companies (two to fifty shareholders).
Tax Regime
JAFZA entities enjoy zero percent corporate tax on qualifying income under the UAE corporate tax framework. No personal income tax applies. Import duties are waived for goods entering the free zone, and re-export from the zone is duty-free. Standard five percent VAT applies to domestic supplies.
Infrastructure
JAFZA spans over 57 square kilometres and includes purpose-built warehouses, light industrial units, open storage yards, office buildings, and showrooms. The zone connects directly to Jebel Ali Port, Sheikh Zayed Road, Emirates Road, and Al Maktoum International Airport. On-site amenities include worker accommodation, retail outlets, and business centres.
Ideal Investor Profile
JAFZA is ideal for trading houses, logistics companies, manufacturers, FMCG distributors, automotive parts suppliers, and any business requiring efficient port access and warehouse infrastructure to serve regional and global markets from Dubai.