In 2025, the Jebel Ali Free Zone (Jafza) commemorates its 40th anniversary, marking four decades of transformative impact on economic and global trade development.
Established in 1985 as the Middle East’s free zone with just 19 companies, Jafza has evolved from a visionary initiative into one of the world's most significant free zones, currently hosting over 11,000 companies from more than 140 countries. Its infrastructure connects businesses to over 3.5 billion consumers by sea, air and land.
A Pillar of Economic Growth
Jafza's strategic location adjacent to the Jebel Ali Port and future Al Maktoum International Airport has positioned it as a critical logistics and trade hub. In the past year alone, Jafza facilitated trade worth $190 billion, representing a 15% increase from the previous year.
Over the last two decades, it has attracted over $30 billion in foreign direct investment and contributed to the creation of more than one million jobs in the region.
As His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, recently stated, “We take pride in what DP World has achieved through Jafza – not only in supporting economic diversification and expanding the investment base, but also in its active contribution to building a resilient economic system that keeps pace with global challenges and fosters the growth of supply chains and trade by enabling global partnerships. We look forward to an even greater role for Jafza in driving Dubai’s comprehensive economic growth and supporting global trade through a unique ecosystem that combines innovation, integrated services, and multimodal connectivity by land, sea, and air.”
Advantages of Establishing a Business in Jafza
Establishing a business in Jebel Ali Free Zone (Jafza) presents a powerful opportunity for entrepreneurs and international companies aiming to expand into the Middle East, Africa, and South Asia. As one of the UAE’s oldest and most prestigious free zones, Jafza combines regulatory ease with strategic advantages that few other regions can match. A key benefit is the provision for 100% foreign ownership, allowing investors to retain full control of their operations without the requirement of a local partner, an especially attractive feature for businesses seeking autonomy and strategic alignment with global headquarters.
Tax incentives in Jafza have long been a magnet for international investors. Historically, companies operating within the zone enjoyed full corporate tax exemptions. Although the UAE introduced a federal Corporate Tax Law effective June 1, 2023, Jafza has retained its designation as a “Qualifying Free Zone.” This means that while all free zone companies, including those in Jafza, must now register for corporate tax, qualifying income continues to be taxed at 0%. Only non-qualifying income is subject to the standard 9% rate. Businesses must ensure proper accounting segregation between qualifying and non-qualifying income and are required to submit annual tax returns to remain compliant. Failure to do so could not only lead to financial penalties but also jeopardize their preferential tax status.
Moreover, Jafza is designed to accommodate a diverse array of business activities, from heavy manufacturing and industrial operations to e-commerce, logistics, and professional services. This versatility makes it an ideal base for companies across sectors looking to establish a foothold in the region.
Setting up in Jafza is also remarkably efficient. The incorporation process typically takes between 3 to 14 business days, depending on the nature of the business and the completeness of submitted documentation. With streamlined procedures, supportive regulatory frameworks, and a business friendly environment, Jafza continues to stand out as one of the most reliable and forward-thinking free zones for ambitious ventures targeting regional and international growth.
Company Formation Process in Jafza
Forming a company in Jebel Ali Free Zone (Jafza) is a structured yet straightforward process, especially when guided by experienced professionals. With the right support, entrepreneurs and businesses can efficiently establish their presence in one of the region’s most business-friendly environments, without getting bogged down by red tape. Our firm specializes in managing every stage of the setup process, ensuring full compliance with Jafza’s regulations while allowing clients to focus on their business goals. Here’s a breakdown of how the company formation process works:
1. Define Your Business Activity and Legal Structure
The first step is to determine the nature of your business activity and select the most appropriate legal structure. Jafza offers three main options: a Free Zone Establishment (FZE) for a single shareholder, a Free Zone Company (FZCO) for multiple shareholders, or a branch office for an existing company looking to expand into the UAE. This decision shapes everything from licensing to operational scope, so it’s critical to align it with your strategic objectives.
2. Submit Your Application and Required Documentation
Once the structure is chosen, the incorporation process begins with the submission of a formal application along with supporting documents. These typically include passport copies of shareholders and directors, a detailed business plan, and completed application forms. Accuracy and completeness at this stage are key to avoiding delays in processing.
3. Choose and Lease a Facility
Jafza offers a wide range of real estate options to suit different operational needs. Whether you require a standard office, a warehouse for logistics, or an industrial plot for manufacturing, selecting the right facility is an essential part of aligning your setup with business functionality and future growth.
4. Secure Licenses and Regulatory Approvals
After selecting your facility, the next step is obtaining the necessary business licenses. Depending on your activity, commercial, industrial, or service, Jafza will issue the appropriate license, and any additional approvals from regulatory bodies will be coordinated as required. This ensures your business is fully authorized to operate within the legal framework of the free zone.
5. Launch Your Operations
Once all documentation is approved, licenses are issued, and the lease agreement is finalized, you’re officially ready to begin operations. At this point, your company is registered, legal, and positioned to take advantage of Jafza’s logistical benefits and regional access.
In short, while the process is comprehensive, it doesn’t have to be complicated. With proper guidance, businesses can be up and running in a matter of days ready to thrive in one of the UAE’s most dynamic and globally connected business hubs.
Key Legal Considerations for Businesses in Jafza in 2025
While Jafza continues to be one of the most attractive jurisdictions for international investors thanks to its streamlined company formation process and business-friendly infrastructure, the recent legislative developments have introduced critical compliance obligations that businesses must carefully navigate. Among these, the Economic Substance Regulations (ESR) remain a top priority. Companies engaged in relevant activities, such as holding, shipping, or headquarters services, are required to file annual notifications and demonstrate that their core income-generating activities are genuinely conducted within the UAE. Failure to comply can lead to steep financial penalties and damage to a company’s reputation.
Another key requirement is the disclosure of Ultimate Beneficial Owners (UBOs), as mandated by Cabinet Resolution No. 58 of 2020. Businesses must accurately identify and report their UBOs to Jafza authorities to ensure transparency and avoid regulatory complications.
In addition, companies must now align with the UAE’s Personal Data Protection Law (Federal Decree-Law No. 45 of 2021), which introduces GDPR-style standards for data privacy. This requires implementing strong internal policies to lawfully manage and protect personal data belonging to clients, partners, and employees. On a more strategic note, the evolving visa and immigration framework in Jafza offers entrepreneurs greater flexibility and access, provided their company structure meets the necessary eligibility criteria. Together, these obligations underscore the importance of a well-informed, compliant approach to business setup and operations in Jafza.
Our Role at Al Safar & Partners Advocates & Legal Consultants
At Al Safar & Partners Advocates & Legal Consultants, we provide end-to-end legal support for businesses looking to establish and thrive within Jebel Ali Free Zone (Jafza). We continue to guide clients through every stage of the setup and operational process, simplifying what can otherwise be a complex regulatory journey. Our expertise begins with strategic legal consultation helping clients choose the most appropriate legal structure while ensuring full compliance with Jafza’s evolving regulations. We handle the preparation and submission of all required documentation with precision, minimizing delays and ensuring accuracy. Our team manages all correspondence with Jafza authorities to secure timely approvals and licenses, acting as a direct liaison to streamline communication. Beyond formation, we offer ongoing legal support to help businesses remain compliant, address operational challenges, and adapt to regulatory changes as they arise. With a deep understanding of the local legal framework and a strong track record of client success, we are committed to empowering businesses to unlock the full potential of operating in Jafza.
Conclusion
Jafza’s 40-year journey is a testament to Dubai’s long-term vision of building a globally competitive, innovation-driven economy. From its inception, Jafza has played a pivotal role in positioning the UAE as a regional hub for trade, logistics, and investment. Its continued success is grounded in a unique blend of strategic location, world-class infrastructure, investor-friendly policies, and regulatory agility. Today, Jafza stands as one of the most robust and attractive free zones in the Middle East, offering businesses of all sizes from startups to multinational corporations a powerful platform to launch, scale, and connect with global markets.
As Jafza evolves to meet the demands of a fast-changing economic landscape, it presents not just opportunity, but also complexity. New compliance obligations, legal frameworks, and strategic considerations now form an essential part of doing business in the zone. In this environment, having a knowledgeable legal partner is not just beneficial, it’s essential. At Al Safar & Partners Advocates & Legal Consultants, we bring decades of experience, a deep understanding of UAE laws and regulations, and a commitment to client success. Whether you are forming a new entity, navigating compliance requirements, or planning long-term expansion, our team is equipped to ensure your business enters and operates in Jafza smoothly, confidently, and in full alignment with local laws. With the right legal guidance, Jafza becomes more than a launchpad, it becomes a strategic advantage.
For more information or legal assistance, contact Al Safar and Partners today on 0527583267 - reception@alsafarpartners.com - https://www.alsafarpartners.com/
Written By: Mr. Paul-George Căta - Partner & Senior Legal Consultant at Al Safar and Partners Law Firm.