Free zone and Freehold-zone: remember the difference

Many investors entering the property market in Dubai often have confusion between the terms free zone and freehold-zone. The broker's job is to explain what the terms mean and what the main differences are.

What is a free zone?

In simple terms, it is a location that has clear boundaries and special conditions for doing business. Foreign investors can open and conduct business activities in these territories even without the participation of a local partner. Such zones were created to attract the attention of business owners and foreign investors. Their big advantage is that it is not necessary to conduct business on the territory of the Emirates, you can simply open a headquarters here and work in another country.

Answers to the most common investors' questions

-Where are the free zones located?

-They can be found in almost every major city in the UAE. However, Dubai has the most of them.

-How many free zones are there in Dubai?

-There are more than 20 free zones in Dubai.

-What are the requirements for a free zone?

-Each location has its own requirements and rules. For example, to get into some free zones, you need to have a certain level of income. And some require a specific area of activity: start-ups, financial organisations or firms specializing in modern technologies.

-How to open a company in a free zone?

-First you need to obtain a business license and a resident visa. And then open a corporate account with a local bank. However, it should be realized that each freezone has different requirements. Therefore, you should first of all start from a specific location.

-What are the pros of a free zone for investors?

-Owners of companies located in freezones are exempt from taxes on company start-up, VAT, business operations and customs duties. Due to such benefits, many foreign entrepreneurs are keen to set up their business specifically in the UAE to save significant amounts on taxes. In addition, the government of the United Arab Emirates regularly implements reforms aimed at simplifying business processes, which also helps to increase the flow of investment into the region.

Due to the absence of taxes, many companies registered in Dubai Freezone and other emirates can offer their clients more competitive prices for goods and services. This creates a favorable business environment and helps to develop the UAE economy in general.

-Is it possible to get a resident visa for starting a company in a free zone?

-A 5-year resident visa can be obtained by investing at least $136,000 in a business or startup.

Examples of free zones in Dubai

- Dubai Media City will be an ideal location for those looking to start a media related business.

- The JLT free zone will suit those who dream of an office located on the top floors of a skyscraper.

- The DAFZA free zone is home to companies related to aviation and logistics.

- If you want to open a business in IT-technology, there is no better location than Dubai Silicon Oasis.

- DHCA - if you are a healthcare professional, welcome to the Healthcare City Dubai Authority freezone.

- Gold and Diamond Park - a free zone for those who work with jewelry.

What is a freehold zone?

This term does not refer to business management, but to property. Freehold-zone is a place of full ownership. Foreign investors who buy property in such a zone become its full owners and can later manage it as they wish.

Reasons for creating freehold zones:

Inflow of foreign investors.
Development of the property market in the UAE.
Decreasing dependence on the oil industry.
Strengthening the image of the Emirates as an international center open to foreigners.

Pros of a freehold zone

The owner of such property can rent it, resell it or pass it on as an inheritance.
A foreign investor buying an apartment can obtain a resident visa not only for himself, but also for his family.
Flexibility in managing their property. The owner can make any renovations and redevelopment in the apartment.

Top 3 projects for buying property in the freehold zone

Ellington Views is a residential complex located in the popular emirate of Ras Al Khaimah. The views of the green golf courses and marina will not leave lovers of luxury living unimpressed. The internal infrastructure of the complex is very diverse: swimming pool, gym, mini golf, cinema and other entertainment for every taste.

Handover: 1st quarter of 2027

Price: from AED 2 785 828

Vitality by Segrex is an apartment complex located in the JLT neighborhood, which will appeal to those who like to live a quiet, measured life. The residential complex is famous for its secluded spaces and fully furnished lots. Special spaces have been created for recreation and work inside the complex: meeting places, co-working space, yoga studio, swimming pool, coffee shop, etc.

Handover: 1st quarter of 2026

Price: from AED 593 193

Orbis by Sobha is an exclusive community in a modern metropolis. The atmosphere of luxury and comfort is created by strict design and stylish finishes. A variety of internal infrastructure: swimming pools, recreational facilities, volleyball court, yoga center, garden and walking areas.