Mainland vs. Free Zone: Which is Right for Your Business?

Choosing between setting up in the mainland or a free zone is one of the first major decisions for entrepreneurs in the UAE.

Mainland Business Setup

  • Allows trade across UAE and internationally
  • Can bid for government contracts
  • Requires a physical office space
  • May require a UAE national sponsor depending on the business type

Free Zone Business Setup

  • 100% foreign ownership
  • No customs duties on imports/exports within the zone
  • Limited to trading within the free zone or internationally (not directly in mainland)
  • Cost-effective with flexible office solutions

Which One Should You Choose? If you plan to do business locally in the UAE and need full market access, the mainland is ideal. However, if your business is export-oriented or online-based, a free zone could offer more benefits at a lower cost.

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