Free Zone Options for opening a Logistics Company in the UAE

There are many opportunities available to a business in the United Arab Emirates and the government of the country is taking steps to attract more and more companies from all around the world. The UAE has become a breeding ground for various companies and also acts as a gateway to the markets in the Middle East.

The government of the United Arab Emirates has taken a number of steps and has also provided various benefits to the companies if they decide to come into the country to set up their business. One of the beneficial steps taken by the UAE government is the establishment of various free zones in the country. Let us know more about these free zones.

Free Zones in the UAE

The United Arab Emirates has a number of free zones all over the country. These free zones can be industry-specific and can provide a lot of benefits to the business. One of the biggest benefits to a company by establishing a company in the free zone is that the company will not have to pay any taxes to the government. This can be a huge benefit for the company and can drastically increase the profits of the company.

This move will also help in attracting more and more business from all around the world which will help in the development of the economy of the country. There are a number of free zones available to a business to choose from which allows a business to decide which location will be more suitable for a business.

Ideal Free Zone for a Logistic Company

Each of the free zones in the UAE has its own benefit and will be provided assistance by the relevant free zone authority. Here we have tried to provide the best suitable free zone for the logistics industry but the management of the company should also conduct research as to which free zone will be suitable for the business.

To choose the free zone suitable for the company the management should keep in mind certain factors which are:

  1. Raw materials

Raw materials mean the materials which will be used in the business activity. Here we will be taking the example of the logistics industry. The raw materials here will be the main products, either finished Work in Progress, which will be transported via the mode of transportation used.

  1. Transportation

The mode of transportation depends vastly on the location of the free zone and where the goods need to be transported. Most of the logistics companies will have access to both sea transport and land transport

  1. Markets

The markets where the goods are to be transported must be comparatively near. In the case of the logistics industry, the markets should be easily accessible via the mode of transportation.

  1. Climate

Climate plays a very important role in deciding where a company should set up its business. The climate should not be very harsh as it may create problems for the business. It will also create a nuisance for business activities.

  1. Infrastructure

Here infrastructure will not only represent the office buildings and the various vehicles but also if the roads are in the proper condition. If not then transporting the goods from one place to another can be a difficult task for the business.

These are some of the factors which should be kept in mind before selecting a location for the business. Some of the examples for suitable Free Zones in the UAE are:

  1. Dubai Airport Free Zone
  2. Dubai South Free Zone
  3. Sharjah Airport International Free Zone

Option 1 and 3 are connected to countries all over the world via airports. This makes the two free zones very well connected and one of the best locations to set up a logistics business. But it is recommended that the management conducts research as to where it should set up its business.

To know more about a suitable location to set up a business and also to know more about setting up a business and the various services required after setting up a business in any of the free zones in the UAE, feel free to contact the experts at Jaxa Chartered Accountants. We will be happy to help you.