The new initiative received the name DIEZ, which stands for Dubai Integrated Economic Zones, and will supervise three Free Zones: DAFZA (Dubai Airport Freezone Authority), DSOA (Dubai Silicon Oasis), and DCC (Dubai Commerce City). The new Law will be published effective from 1 January, 2022. 

In the first quarter of 2021, the share of foreign trade from all Free Zones in Dubai comprised 38% of Emirate’s overall foreign trade, which is equivalent to AED 135 billion. 

In 2020, the amount of Foreign Direct Investments into Dubai’s trading, transportation, and financial sectors reached more than AED 24 billion. Thus, more than 455 projects received funds, according to Dubai Investment Development Agency (Dubai FDI). Launching the new Authority is aimed for facilitating global markets, accelerating the transition to the automatisation, integration of the Government processes, and diversification of investments. Moreover, the Authority pursues the initiatives in implementing and regulating the administrative infrastructure and business activities of DIEZ, including, but not limited to storage and import of goods. 

Thus, DIEZ will become a new jurisdiction for more than 5,000 companies, and more than 30,000 personnel, operating in more than 20 major economic sectors. Meanwhile, the jurisdictions will comprise approximately 5% from the overall GDP of Dubai. One of the goals of DIEZ is to encourage investors to open headquarters of their companies in the Emirate. Key areas, which became the concentration of economic stimulation of Dubai are: e-commerce, retail, logistics and shipping, tech, IT. 

In addition, companies, licensed by DIEZ, will be exempted from TAX for 50 years, effective from the date of New Law. Moreover, starting from the effective date of the New Law, companies will be exempted from the restricted ownership, repatriation, or nationalization of funds and capital for 50 years, regardless of the currency and the destination. Additionally, the regulations of Dubai Economy and Dubai Municipality will not have the full authority to cover companies under DIEZ jurisdiction. The exception sections are: security and food control and safety. Regulating sections might be subjected to the amendments. 

If you would like advice or assistance, kindly contact us. 

Marsel Shadmanov

Head of Corporate Services at Garant Business Consultancy DMCC

Phone +971 4 421 4335

Email info@garant.ae