Free zone or mainland: what it means for UAE importers
Where your company is licensed changes how imports work. The basic differences, in plain English.
- Free zones can offer customs advantages for goods stored or re-exported.
- Goods moving from a free zone into the UAE mainland are generally subject to duty at that point.
- Selling directly to the local market can require additional arrangements for free zone companies.
- Take professional advice before setting up.
The UAE has many free zones alongside mainland licences. For importers, the choice affects customs, how and where you can sell, and your costs. This is a general overview, not legal or tax advice.
| Free zone company | Mainland company | |
|---|---|---|
| Customs on arrival | Goods entering the free zone can often be held without paying duty | Duty generally paid when goods enter the UAE |
| Re-export | Often suited to re-export trade | Possible, with procedures |
| Selling in the UAE market | May need a distributor or additional arrangements | Can trade directly in the UAE |
| Duty when goods enter the mainland | Generally due at that point | Already paid on import |
Questions to ask your adviser
- Will I mainly sell in the UAE, re-export, or both?
- Which activities does my licence allow?
- How will VAT apply to my imports and sales?
- Which free zone suits my product and logistics?
Rules differ between free zones and change over time, so check with the relevant authority and a qualified adviser.
Related: importing through Jebel Ali and landed cost worked example.
How Husbar can help
Husbar China Line works with Gulf brands and their advisers to plan sourcing and imports that fit their company setup. See Husbar China Line.
Frequently asked questions
Do free zone companies pay customs duty?
Goods held in a free zone are often not charged duty until they enter the UAE mainland. Rules vary.
Can a free zone company sell in Dubai?
Selling to the local market may need a distributor or additional arrangements. Check with your free zone.
Which is better for importers?
It depends on where you sell. Take professional advice.