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Free zone companies in UAE - how do they operate without doing business with mainland?

wheelspin

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Oct 5, 2020
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Hello,

how do free zones do business within their free zone or outside the country?

For running an eCommerce business you need the special eCommerce license and can operate on different platforms. There are some free zones where you can ship your products from your FZ to mainland and clear customs.

In tech I believe they offer some consulting services, sw development, marketing agencies etc. they can focus on the APAC market.

What do all the trading or shipping companies do?

DIFC has tons of unregulated companies. Barely believe that there’s such a high demand.

For instance, I’ve never heard of Western European companies doing lot business with Dubai free zone companies as they tend to be rather expensive?

Gold and diamond trade is a thing, you need a distributor to sell to mainland.

There’s some branches and subsidies of large established companies like Nike, adidas etc. in the design free zone. OK, that is more consulting and art business.

Who has a successful running business in any free zone and what do you do? What is your market? China is a big player and offering services back to them sounds not smart.

An accountant or lawyer isn't technically allowed to offer services to the mainland companies. How is he targeting customers and within what region (GCC / APAC?)?
 
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Hello,

how do free zones do business within their free zone or outside the country?

For running an eCommerce business you need the special eCommerce license and can operate on different platforms. There are some free zones where you can ship your products from your FZ to mainland and clear customs.

In tech I believe they offer some consulting services, sw development, marketing agencies etc. they can focus on the APAC market.

What do all the trading or shipping companies do?

DIFC has tons of unregulated companies. Barely believe that there’s such a high demand.

For instance, I’ve never heard of Western European companies doing lot business with Dubai free zone companies as they tend to be rather expensive?

Gold and diamond trade is a thing, you need a distributor to sell to mainland.

There’s some branches and subsidies of large established companies like Nike, adidas etc. in the design free zone. OK, that is more consulting and art business.

Who has a successful running business in any free zone and what do you do? What is your market? China is a big player and offering services back to them sounds not smart.

An accountant or lawyer isn't technically allowed to offer services to the mainland companies. How is he targeting customers and within what region (GCC / APAC?)?

Good question!) Very good. It's time to admit that the line between official offshore and Free Zones (for most of them) has been erased at 0. That's what they're doing, to put it mildly... But it will be very interesting to listen to the specialists who run their business there.

One of my companies is IT with software. And in this case, the Free Zone performs all the necessary functions: I am legalized and insured (intellectual property). But my friends use these gateways for the most part for "flow" (they close at once or gradually and still live). Someone just opened up, realized that he was deceived and the conditions were terrible, but he was in no hurry to close because of the visa (for example).
 
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