JAFZA.
Jebel Ali Free Zone — the original UAE free zone. Port-adjacent. Industrial.
JAFZA is where the UAE free-zone story began in 1985, and remains the gold standard for logistics, trading, manufacturing and customs-bonded activity. Direct access to Jebel Ali Port (the world's ninth busiest), customs warehouses, industrial plots and warehousing leases. Where IFZA is for digital businesses, JAFZA is for businesses that move physical goods.
JAFZA is usually suitable for logistics, manufacturing, warehousing. It is not ideal for selling directly to UAE-mainland retail customers, or regulated financial services without the appropriate licence. Year-one cost starts from USD 30,000 (single shareholder, all-in; residency-visa government fees quoted separately where applicable). Typical time to licence is 21-35 working days after KYC clearance. Corporate tax is 0% on qualifying income (QFZP) and 9% on non-qualifying income above AED 375,000; a QFZP must keep audited financial statements to claim the 0% rate.
When JAFZA fits.
- Logistics, freight forwarding, customs brokerage
- Trading houses (commodities, FMCG, electronics)
- Light manufacturing and assembly
- Importers needing customs-bonded warehouse
- Distribution hubs serving MENA region
When JAFZA doesn't.
- Consulting and services-only businesses
- Cost-sensitive solo founders (IFZA at 1/4 price)
- Founders who can't visit / lease office
- E-commerce without physical inventory
Three corporate forms.
Free Zone Establishment
Single shareholder. No statutory minimum capital (must be adequate for the licensed activity). Most common form for foreign-owned trading businesses.
Free Zone Company
Two or more shareholders. No statutory minimum capital. For joint ventures and multi-owner structures.
Branch of Foreign Co.
No separate legal personality. Parent company is fully liable. Useful for foreign manufacturers extending UAE presence.
Prepared and reviewed by qualified counsel within ArxSetup and our affiliated practices, Neo Legal (UAE) and Cornwalls (Australia). Figures verified against primary regulator sources. Last reviewed: May 2026. How we review →
Common questions on JAFZA.
These are the questions UAE-resident founders most often ask before signing an engagement letter. Each answer is current as of 2026 and reviewed by our incorporation team.
How much does it cost to set up a company in JAFZA?
From USD 30,000 all-in for year one for an onshore JAFZA company with the smallest mandatory office (26.88 m² at roughly USD 14,600/year); the licence component is USD 1,400–2,330, plus office, registration and ArxSetup professional fee.
How long does JAFZA company formation take?
3–5 weeks for licence issuance after document submission; full setup including visas and bank account typically completes in 6–8 weeks.
Does JAFZA require a physical office?
Yes — every onshore JAFZA company requires a leased facility (flexi-desk, office or warehouse) within the free zone. JAFZA Offshore is the exception and requires no physical presence.
What is the difference between JAFZA and DMCC?
JAFZA is Dubai's logistics, manufacturing and warehousing free zone next to Jebel Ali Port — entry licence around USD 1,400 plus mandatory warehouse or office. DMCC is the JLT commodities and professional-services free zone with no industrial offering and a higher entry licence.
Can a JAFZA Offshore company own property in Dubai?
Yes — JAFZA Offshore is the only UAE offshore structure legally permitted to own freehold property in Dubai. This is a unique feature versus RAK ICC, BVI or Cayman, which cannot.
What is a JAFZA Type 1 vs Type 2 licence?
Type 1 permits up to 7 activities within a single activity group (approximately USD 1,400); Type 2 permits up to 12 activities across two groups (approximately USD 2,330). Type 2 is preferred for diversified trading operations.
Can JAFZA companies have 100% foreign ownership?
Yes — 100% foreign ownership, 0% corporate tax on qualifying free-zone income, 0% personal income tax, full capital and profit repatriation.
How many shareholders does an FZE or FZCO in JAFZA need?
An FZE (Free Zone Establishment) requires a single shareholder; an FZCO (Free Zone Company) requires between two and five shareholders. Both can be individuals or corporate entities.
How much does a JAFZA employee visa cost?
USD 1,250–1,900 in total per employee, covering entry permit, medical, Emirates ID, residence visa stamping and labour card. Most JAFZA companies provision 3–6 visas at launch.
Is JAFZA cheaper than DMCC?
Entry-level licence fees are lower (USD 1,400 vs USD 5,500), but mandatory warehouse or office lease and the JAFZA registration fee push realistic year-one totals above DMCC for non-industrial setups.
Can I set up a JAFZA Offshore company remotely?
Yes — JAFZA Offshore registration is fully remote; you do not need to visit the UAE, there is no physical-office requirement, and there is no minimum share capital.
What is the JAFZA Offshore minimum capital?
No minimum share capital is required for a JAFZA Offshore company. Shares must be denominated in AED but can be issued at any nominal value, including AED 1.
Can JAFZA Offshore companies open UAE bank accounts?
Yes — JAFZA Offshore is one of the few UAE offshore regimes accepted by major UAE banks for corporate accounts. KYC typically completes in 6–10 weeks with a UAE-resident UBO present.
What activities does JAFZA permit?
Trading (general and specialised), services, industrial and manufacturing, logistics, e-commerce, and offshore holding. Over 1,000 sub-activities are approved across these categories.
Does JAFZA offer warehousing?
Yes — JAFZA's core advantage is large-scale warehousing and industrial space directly adjacent to Jebel Ali Port (the world's 11th-busiest container port) and Al Maktoum International Airport.
Quick answers on JAFZA.
Can a JAFZA Offshore company invoice UAE customers?
No — JAFZA Offshore can only invoice non-UAE customers. For UAE invoicing you need an onshore JAFZA, DMCC, IFZA or mainland licence.
Is JAFZA Designated Zone for VAT?
Yes — JAFZA is a Designated Zone under UAE VAT law. Supplies of goods between Designated Zones can be treated as outside the scope of VAT under specific conditions.
Why JAFZA over Khalifa Industrial Zone (KIZAD)?
JAFZA is closer to Jebel Ali Port and Dubai customer base; KIZAD is preferred for heavy industrial with Abu Dhabi government links and sovereign-backed incentives.
How JAFZA stacks up.
The most common shortlists we see for JAFZA candidates, and the reason each appears. Each link opens the dedicated jurisdiction page.
JAFZA vs DMCC
From USD 17,800 — JLT free zone, mandatory office, strongest banking.
Why people compare: commodities + professional services.
Open DMCC pageJAFZA vs DAFZA
Dubai Airport Free Zone — cargo, aviation services, logistics.
Why people compare: airport-adjacent cargo.
Open DAFZA pageJAFZA vs IFZA
From USD 10,120 — Dubai free zone, no office, 6 visas, 7 activities.
Why people compare: services + freelance.
Open IFZA pageJAFZA vs RAK ICC
UAE offshore — passive holding & SPV at lower cost than BVI.
Why people compare: offshore holding.
Open RAK ICC page