Free Zone often referred to as Free Zone, also known as a Free Trade Zone, are designated areas of economic activity where services and goods can be traded, typically with preferential rates of tax and customs. 

The first time they were introduced was to encourage International Business in the region with benefits like 100% foreign ownership of companies. Businesses that are established in a Free Zone enjoys special status such as tax-free status and favorable trading conditions. Companies operating in Free Zones are not required to pay Export and Import Custom taxes on goods.

The UAE is home to more than 50 Free Zones with some of them offering general services to all industries while others Free Zones are specific to industries. It is possible to choose a Free Zone company formation in UAE within one of the Free Zones.