Dubai International Financial Centre (DIFC) is a financial hub in the heart of Dubai. It is home to some of the world’s leading financial institutions and professional services companies. One question that often arises is whether DIFC is a free trade zone. In this article, we will explore this question and provide a clear answer. Call us on this number to obtain DICF free zone license.

What is a free trade zone?

Before we answer whether DIFC is a free trade zone, it is important to understand what a free trade zone is. A free trade zone, also known as a free zone, is a designated area where goods can be imported, manufactured, and exported without being subject to the customs regulations and taxes that apply to the rest of the country. Free zones are established to promote economic growth and attract foreign investment.

Is DIFC a free trade zone?

The answer is no; DIFC is not a free trade zone. While DIFC operates under its legal and regulatory framework, it is not considered a free zone under UAE law. This means that companies operating in DIFC are subject to UAE customs regulations and taxes on goods and services imported or exported outside of the DIFC.

DIFC operates under its own set of laws and regulations designed to promote business and investment in the financial sector. The DIFC has its legal system, a separate court and arbitration center, and its regulator, Dubai Financial Services Authority (DFSA). The DFSA regulates financial services and markets in DIFC and ensures compliance with international standards.

Advantages of operating in DIFC:

While DIFC is not a free trade zone, there are many advantages to operating a business in this financial hub. One of the biggest advantages is the favorable business environment designed to attract and retain top financial institutions and professional services companies. DIFC offers business support services, including access to world-class infrastructure, a skilled workforce, and state-of-the-art technology.

Another advantage of operating in DIFC is the tax benefits. While companies operating in DIFC are subject to UAE taxes on goods and services that are imported or exported outside of the DIFC, they are exempt from corporate and personal income taxes and capital gains taxes. This makes DIFC an attractive location for businesses looking to establish a regional presence.