Post on 28-Sep-2020
DOING BUSINESS IN THE UAE UMM AL QUWAIN FREE TRADE ZONE - A CASE STUDY
United Arab Emirates
Situated in Southwest Asia,
bordering the Gulf of Oman
and the Arabian Gulf,
between Oman and Saudi
Arabia
Comprises of Seven
Emirates: Abu Dhabi,
Dubai, Sharjah, Ajman,
Umm Al Quwain, Ras Al
Khaimah and Fujairah.
Chosen as one among the
most desired tourist
destinations.
Why U.A.E ?
Strategic geographic location: Strategically located midway
between the Far East and Europe, and between the CIS
Countries and Africa.
Stable Government: Vision of the UAE Leaders and tolerant
lifestyle has been a major factor in attracting foreign
investment.
Transparent legal systems.
Excellent Logistics System.
..are few among the various other factors for the prosperous
developments of the Emirates.
Setting up Business in the
UAE
A UAE entity requires the participation of at-least fifty-one
percent (51%) by UAE Nationals except:
In the Free Zones
As required by law One Hundred Percent (100%) of
ownership by a UAE National
Such licenses are issued by the Department of Economic
Development of the respective emirate
U.A.E – Free Zones Writing Success Stories
Over 38 FTZs in the U.A.E
An integral part of U.A.E’s economy.
Hosts more than 25,000 companies across sectors
100% foreign ownership
No corporate or personal income taxes
Full repatriation of funds
No currency restrictions
No import or export duties and taxes
The Emirate of
Umm Al Quwain
Located in the northern side of the
U.A.E.
Situated immediately after the
Emirate of Sharjah and before Ras
Al Khaimah.
30 minutes from Dubai Intl. Airport
and 20 minutes from Sharjah Intl.
Airport.
It covers an area of approx. 750
square kilometers.
The emirate is ruled by H.H Sh.
Saud bin Rashid Al Mu’alla.
U.A.Q – Free Trade Zone
Established in the year 1987, was initially known as Ahmed Bin
Rashid Port and Free Zone.
As per the Decree No.3 for 2014 of H.H. Sheikh Saud bin Rashid
Al Mu'alla, Ruler of Umm Al Qaiwain, the free zone name has
been changed to "Umm Al Quwain Free Trade Zone" (UAQ FTZ)
in the year 2014.
Features of UAQ FTZ:
No corporate and personal income tax
100% foreign ownership
Full range of business activities permitted
100% repatriation of capital and profits
No currency restrictions
100% import and export tax exemption within the free zone
Simple and fast registration process with excellent customer support
Hi-Tech facilities including office, warehouse and land availability
Strategic location with access to over two-billion customers
Ideal location for SMEs and Micro Businesses
Special concessions at UAQ Port
No restrictions on hiring foreign employees
Modern and Investor friendly rules and regulations
Why UAQ FTZ
Cost saving option for entrepreneurs and manufacturers.
Easy access to U.A.E’s major sea ports and air ports.
In addition to the other benefits, UAQ FTZ offers;
Flexibility and ease of doing business
Customer friendly approach
Cost-effective leasing options for office space and
warehousing
Other excellent investment opportunities
Modern and Investor friendly Rules and Regulations
Types of Entities
FZC (Free Zone Company)
Two or more shareholders who could be individuals or
corporate (maximum up-to 50)
FZE (Free Zone Establishment)
Single shareholder (individual or a corporate)
Br. (Branch)
A Branch of a foreign company or UAE company
Types of Licenses
1. Commercial;
Two types:
A. Commercial License
3 different activities or 10 similar activities
2 Visa eligibility
B. General Trading License
Enables trading in a wide range of products (other than
Alcohol, Tobacco & Armaments)
3 Visa eligibility
Types of Licenses (cont.)
2. Consultancy License;
Entities offering expert or professional advice
Allows 2 similar consultancy activities
2 Visa eligibility
3. Industrial License;
Allows import of raw-materials to manufacture/ process/
assemble/ package the specified products and export the
end-products.
Visa eligibility as per the facility and activity.
Types of Licenses (cont.)
4. Freelance Permit;
Allows individual to operate as Freelance professional
Designed for Technology, Media and Film Sectors
Issued to talent roles, creative roles and selected
administrative roles
1 Visa eligibility
Not a company, just permit
5. Service License;
Service Providers to carry out specified services within the
Free Zone territory
E.g.: Logistics, Courier Services, Car Rentals, Banks
Types of Licenses (cont.)
6. Premium License (Commercial & Consultancy);
Special premium activities (E.g.: Legal, Investment, Real
Estate, Shipping & Logistics etc.)
1 Premium Consultancy Activity / 1 Premium Commercial
activity
3 Visa eligibility
7. Micro Business License (Commercial & Consultancy);
All benefits of Consultancy / Commercial license
No Visa eligibility
General Trading and Premium license categories are not
applicable under the Micro Business
Advantages of UAQ FTZ
Can have up-to 50 shareholders
Multiple license options in the same entity
Easy documentation and Set-Up process from the convenience
of home or office anywhere in the world
No proof of start-up capital required
Incorporation
Process
Minimal documentation
Cost-Effective packages
Licensing : 1-2 working
days
Residence visa assistance
Facilities : Warehouse
Facilities : Warehouse
Ready-to-occupy Warehouses
Size : Starting from 100 Sq. M
Attached - Office space, Pantry Area and Washroom
For Storage requirements and Light industrial units
Power and Water connections available
Within the Free Zone, Port and Customs complex
Facilities : Land
Industrial land for construction
Available in various sizes starting from 2,500 Sq. M
Long-Term lease of 25 years (renewable)
Rent starting from AED 18/Sq. M p.a (depending on size)
Availability of electricity and water
UAQ FTZ
Phase 2
Expansion
UAQ FTZ Phase 2 Expansion
Convenient Connectivity
Beside Sh. Mohammed Bin Zayed Road (E 311)
Area of 2 Sq. Kms. (2 Million Sq. Meters/200 Hectares)
Investment Options for infrastructure development
Provision for long lease period
Community living facilities
Provision for Hotels, Hospitals, Schools, Shopping Malls
Labour Accommodation available within walkable distances &
provision to build own labour accommodations
UAQ FTZ Phase 2 Expansion
UAQ FTZ Phase 2 Expansion
Investment Opportunity
UAQ Free Zone is looking for investors to develop a hotel,
hospital, school, office buildings, residential buildings etc. in
the plots detailed on the previous slide.
Below are the basic details of the proposed offer:
Opportunity: Leasehold interests for 25 years, renewable if
mutually agreeable
Target Price: land rent starting from AED 45 / per Sq. M per year
on a plot area basis
Payment Terms: To be agreed mutually
Assurances: From the government
Umm Al Quwain Free Trade Zone It’s easier than You think . .