VAT Designated Zones: which free zones are on the FTA list
A VAT Designated Zone is a free zone listed by Cabinet Decision that meets conditions in the VAT Executive Regulation. Here is the FTA's list and what it means when comparing zones.
General information from official sources, not legal, tax or financial advice. What this means
- Who this is for
- Founders comparing free zones who trade physical goods, or who want to know whether a zone's designation affects them.
- Question answered
- What is a VAT Designated Zone, and which free zones are on the list?
Key takeaways
- Free zone and VAT Designated Zone are not the same; only zones listed in Cabinet Decision 59 of 2017 and its amendments that meet Article 51(1) of the VAT Executive Regulation are VAT Designated Zones.
- The FTA's latest published list (21 September 2021) has 27 entries across all seven emirates; some entries cover only part of a zone.
- The definitions differ between VAT, excise and corporate tax; the FTA says to determine status under each law separately.
- Dubai Textile City and the Al Quoz free zone area were removed from the list in 2021.
- How designation affects your own supplies is a question for a tax adviser.
On this page
A VAT Designated Zone is a free zone that is listed in Cabinet Decision 59 of 2017 and its amendments and that meets the conditions in Article 51(1) of the VAT Executive Regulation. That is how the Federal Tax Authority's Public Clarification TAXP010 (October 2026) defines it. Being a free zone is not enough: only listed areas count, and sometimes only part of a zone is listed. The FTA also notes that "Free Zone" and "Designated Zone" mean different things for VAT, excise tax and corporate tax, so a business must determine its status under each law separately.
This guide summarises official publications. It is not tax advice; confirm your position with the Federal Tax Authority or a licensed tax adviser.
The FTA list
The latest List of Designated Zones we found on the FTA's website is dated 21 September 2021. It reflects Cabinet Decision 59 of 2017 (effective 1 January 2018) and amending decisions 35/2018, 43/2019, 34/2021, 63/2021 and 81/2021. The FTA marks its English section as an unofficial translation.
| Emirate | Designated Zones (effective date) |
|---|---|
| Abu Dhabi | Free Trade Zone of Khalifa Port; Abu Dhabi Airport Free Zone; Khalifa Industrial Zone (1 Jan 2018); Al Ain International Airport Free Zone; Al Butain International Airport Free Zone (18 Jun 2018) |
| Dubai | Jebel Ali Free Zone (North-South); Dubai Cars and Automotive Zone (DUCAMZ); DAFZA Industrial Park Free Zone – Al Qusais; Dubai Aviation City; Dubai Airport Free Zone (1 Jan 2018); International Humanitarian City – Jebel Ali (18 Jun 2018); Dubai CommerCity (1 Jan 2021) |
| Sharjah | Hamriyah Free Zone; Sharjah Airport International Free Zone (1 Jan 2018) |
| Ajman | Ajman Free Zone (1 Jan 2018) |
| Umm Al Quwain | UAQ Free Trade Zone in Ahmed Bin Rashid Port; UAQ Free Trade Zone on Sheikh Mohammed Bin Zayed Road (1 Jan 2018) |
| Ras Al Khaimah | RAK Port Free Zone; RAK Maritime City Free Zone (1 Jan 2018); Al Hamra, Al Ghail and Al Hulaila Industrial Zone – Free Zone (4 Jul 2019) |
| Fujairah | Fujairah Free Zone; FOIZ (Fujairah Oil Industry Zone) (1 Jan 2018) |
The list also records entries that ended: Dubai Textile City (1 January 2018 to 4 April 2021), the Free Zone Area in Al Quoz (1 January 2018 to 1 July 2021) and RAK Airport Free Zone (1 January 2018 to 4 July 2019).
Zones on the list
The table below shows the zones in our data that appear on the FTA list. Check each zone's page for which of its areas are listed.
| Free zone | Emirate | Lowest package (yr 1) | Licence fee from | Max visa quota | Min. office | Incorporation |
|---|---|---|---|---|---|---|
| Jebel Ali Free Zone Authority (Jafza) | Dubai | Not published | AED 5,000 | Not published | Flexi-desk | 3 days |
| Abu Dhabi Airports Free Zone | Abu Dhabi | AED 6,000 | AED 6,000 | 2 | Not published | 4 days |
| Ras Al Khaimah Economic Zone | Ras Al Khaimah | AED 6,000 | AED 6,000 | 1 | Flexi-desk | 1 day |
| Sharjah Airport International Free Zone | Sharjah | Not published | AED 7,500 | Not published | Dedicated office | 1 day |
| Khalifa Economic Zones Abu Dhabi (KEZAD Group) | Abu Dhabi | AED 9,450 | Not published | 4 | Flexi-desk | Not published |
| Dubai South Free Zone | Dubai | AED 11,375 | Not published | 2 | Not published | Not published |
| Umm Al Quwain Free Trade Zone | Umm Al Quwain | AED 12,500 | AED 5,500 | 1 | Flexi-desk | 1 day |
| Dubai Humanitarian | Dubai | AED 20,800 | AED 5,000 | 2 | Flexi-desk | Not published |
| RAK Maritime City Free Zone | Ras Al Khaimah | Not published | AED 25,000 | Not published | Not published | Not published |
| Ajman Free Zone | Ajman | Not published | Not published | Not published | Flexi-desk | Not published |
| Dubai Airport Freezone | Dubai | Not published | Not published | 6 | Flexi-desk | Not published |
| Dubai Cars and Automotive Zone (DUCAMZ) | Dubai | Not published | Not published | Not published | Not published | Not published |
| Jafza | DAFZ | KEZAD | SAIF Zone | |
|---|---|---|---|---|
| Solo, no visa (year 1) | Not published | Not published | AED 9,450 | Not published |
| Founder + 1 visa (year 1) | Not published | Not published | AED 9,450 | Not published |
| Team, 3 visas (year 1) | Not published | Not published | AED 12,850 | Not published |
| Lowest package of any size (year 1) | Not published | Not published | AED 9,450 (1 Year Free Zone Business Package - 1 Visa (VAT included)) | Not published |
| Lowest licence fee | AED 5,000 | Not published | Not published | AED 7,500 |
| Largest visa quota in a published package | Not published | 6 | 4 | Not published |
| Minimum office | Flexi-desk | Flexi-desk | Flexi-desk | Dedicated office |
| Minimum share capital | None | AED 1 | AED 150,000 | AED 150,000 |
| Incorporation time (stated by the zone) | 3 days | Not published | Not published | 1 day |
| On the FTA VAT Designated Zone list | Yes | Yes | Yes | Yes |
| Emirate | Dubai | Dubai | Abu Dhabi | Sharjah |
See the full Jafza vs DAFZ vs KEZAD vs SAIF Zone comparison →
Points to check for your business
- Which area is listed. Several entries name a specific port, airport or industrial area rather than the whole zone. Check whether your premises fall within the listed area.
- Which tax you are looking at. Designation for VAT is separate from the Free Zone definition for corporate tax and from Designated Zones for excise tax.
- What you supply. The VAT law and its Executive Regulation set how supplies in and between Designated Zones are treated. That treatment depends on whether you supply goods or services and where the goods move, so take advice on your own supply chain.
How to use this when choosing a zone
If you trade physical goods, map where goods come from, where they will be stored and where your customers are. Then check whether the zones on your shortlist, and the specific area of each, appear on the FTA list. If you mainly provide services, compare zones by industry, for example general trading or logistics, or use the questionnaire to shortlist zones based on what you need.
The sources at the end of this guide link the FTA documents. Corporate tax follows separate rules; see the Qualifying Free Zone Person guide.
Sources and limits
- FTA List of Designated Zones (21 September 2021) — Cabinet Decision 59 of 2017 as amended up to Cabinet Decision 81 of 2021.
- FTA Public Clarification TAXP010 (October 2026) — Definitions of Free Zone and Designated Zone for corporate tax, excise and VAT.
Questions worth asking
Is every UAE free zone a VAT Designated Zone?
No. A VAT Designated Zone is a free zone listed in Cabinet Decision 59 of 2017 and its amendments that meets the conditions of Article 51(1) of the VAT Executive Regulation. Many free zones are not on the FTA's list.
Where is the official list?
The Federal Tax Authority publishes the List of Designated Zones. The latest version we found is dated 21 September 2021 (Cabinet Decision 59 of 2017 as amended up to Cabinet Decision 81 of 2021).
Is the VAT Designated Zone the same as a Free Zone for corporate tax?
No. The FTA's Public Clarification TAXP010 explains that the definitions differ for corporate tax, excise and VAT, and that a business must determine its status under each law separately.
Does the whole zone count?
Not always. The list names specific areas, for example the Al Hamra, Al Ghail and Al Hulaila industrial areas in Ras Al Khaimah, or the DAFZA Industrial Park in Al Qusais alongside Dubai Airport Free Zone.
How does designation change the VAT on my business?
The treatment is set by the VAT law and its Executive Regulation and depends on what you supply and where goods move. Ask a tax adviser, or check the FTA's VAT guidance, for your own supply chain.
FreezoneGuide Research
We compare UAE free zones using official fee schedules, written replies from zones and dated evidence. Rankings come from the data, and every figure links back to when it was checked. How we verify
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