If you’re planning to start a business in Dubai, the Jebel Ali Free Zone (JAFZA) is one of the most trusted and well-known options. Set up in 1985, JAFZA has grown into one of the world’s largest free zones. Today, it hosts over 10,700 companies from more than 150 countries, including 100+ Fortune Global 500 companies, which shows just how popular and powerful this business hub is.
One of JAFZA’s biggest advantages is its location. It’s right next to Jebel Ali Port (the biggest man-made harbor in the world) and very close to Al Maktoum International Airport. This makes it super easy for businesses to move goods quickly between sea, air, and land, sometimes in as little as 20 minutes. That’s a huge plus for companies dealing with logistics, trading, or international shipping.
JAFZA also plays a big part in boosting Dubai’s economy. It brings in nearly 23.9% of Dubai’s total foreign direct investment (FDI) and supports over 130,000 jobs. Thanks to benefits like 100% foreign ownership, zero corporate or personal tax, and full repatriation of profits, it’s no surprise that Jebel Ali Free Zone Business Setup is a top choice for global investors, especially in logistics, trade, and manufacturing.
Therefore, if you’re thinking about starting a business in Dubai, here we’ll break down everything you need to know about setting up a business in JAFZA.
What is Jebel Ali Free Zone (JAFZA)?
The Jebel Ali Free Zone (JAFZA) was established in 1985 by the government of Dubai to attract foreign investors and boost trade and industrial growth. It started with just 19 companies and has now grown into a global business hub with over 10,700 registered companies from more than 150 countries. JAFZA was one of the first free zones in the UAE and helped set the model for other free zones across the region.
JAFZA focuses on attracting industries like:
- Logistics & Supply Chain
- Trading & Distribution
- Manufacturing & Industrial
- E-commerce
- Energy & Petrochemicals
- Automotive and Aerospace
What are the Key Benefits of Jebel Ali Free Zone Business Setup?
Jebel Ali Free Zone Business Setup comes with a wide range of benefits that make it one of the most attractive business destinations, not just in the UAE, but globally. Here’s why thousands of companies choose JAFZA:
1. 100% Foreign Ownership
Unlike mainland businesses, companies in JAFZA can be 100% owned by foreign investors, with no local sponsor or partner required. This gives full control over your business operations and profits.
2. Real Access to Global Trade Routes
JAFZA isn’t just well-located on a map, it’s right next to the busiest port in the Middle East (Jebel Ali Port) and near Al Maktoum International Airport. This gives businesses direct access to global markets across Asia, Africa, Europe, and the Americas
3. Long-Term Stability and Reputation
JAFZA has been around since 1985. It’s backed by DP World, one of the most respected logistics brands globally. When you register your company in JAFZA, you’re choosing a stable, reputable free zone that’s not going anywhere and is trusted by thousands of companies.
4. One-Stop Business Support
JAFZA offers a streamlined company setup process, including easy licensing, visa services, banking support, customs clearance, and more, all under one roof.
5. Easy to Hire and Expand
Because of its proximity to residential areas and good transport links, you can easily find employees willing to work in JAFZA. Plus, the visa quota system is flexible, allowing you to grow your team as your business scales.
What are the Business Activities Allowed in JAFZA?
Here is a comprehensive list of business activities allowed in JAFZA (Jebel Ali Free Zone):
1. Trading & E-commerce
- General trading
- Import/export
- Wholesale & retail distribution
- E-commerce and online sales
2. Industrial & Manufacturing
- Light & heavy manufacturing
- Product assembly
- Packaging and processing
3. Logistics & Warehousing
- Freight forwarding
- Warehousing and storage
- Supply chain management
- Cold storage
4. Services
- IT services
- Consulting (business, legal, HR)
- Marketing & media
- Technical support services
5. Automotive & Machinery
- Machinery trading
- Auto parts and equipment
- Repair and maintenance services
6. Energy & Petrochemicals
- Oil & gas equipment trading
- Petrochemical storage and supply
- Energy-related services
7. Construction & Engineering
- Contracting and building services
- Engineering consultancy
- MEP works
Note: Some activities may require external approvals depending on the industry. Always consult with JAFZA or trusted experts like AE Setup for compliance.
Legal Business Structures in JAFZA
When setting up a business in Jebel Ali Free Zone (JAFZA), you can choose from several legal structures based on your business needs and size:
1. Free Zone Establishment (FZE)
- A single shareholder company (can be an individual or a corporate entity).
- Ideal for solo entrepreneurs or investors who want full ownership.
- Suitable for smaller businesses or single-owner operations.
2. Free Zone Company (FZCO)
- A company with 2 to 5 shareholders.
- Perfect for partnerships or joint ventures between a few investors.
- Shareholders can be individuals or corporate entities.
3. Branch of a Foreign or Local Company
- Allows an existing company (local or international) to open a branch in JAFZA.
- The branch operates under the parent company’s name and must follow JAFZA regulations.
- Useful for companies expanding into the UAE market without creating a new legal entity.
Documents Required for JAFZA Business Setup
To register your company in Jebel Ali Free Zone (JAFZA), you will need to prepare and submit several key documents:
- Passport copies of shareholders and managers
- UAE residence visa copies (if applicable)
- Proof of residential address (utility bill or bank statement)
- Business plan
- No Objection Certificate (NOC) from current employer (if employed in UAE)
- Memorandum of Association (MOA) / Articles of Association (AOA)
- Board resolution (for corporate shareholders)
- Completed JAFZA application forms
- Bank reference letter (if requested)
What is the Process of Jebel Ali Free Zone Business Setup?
Setting up a business in Jebel Ali Free Zone (JAFZA) is a structured process designed to facilitate smooth company formation. Here’s a step-by-step process:
Step 1: Define Your Business Activity
Identify the specific business activity you wish to undertake. JAFZA offers licenses for various types of business activities, including:
- Trading License
- Service License
- Industrial License
- E-commerce License
Step 2: Choose Your Company Structure
Decide on the legal structure that best suits your business needs:
- Free Zone Establishment (FZE)
- Free Zone Company (FZCO)
- Branch Office
Step 3: Select a Company Name
Choose a unique company name that complies with JAFZA’s naming guidelines. Avoid terms like “Abu Dhabi” or “UAE” unless permitted, and ensure it reflects your brand. Submit it for approval through JAFZA’s portal.
Step 4: Submit Application & Documents
Fill out the company registration form and prepare all necessary documents (passport copies, proof of address, business plan, etc.). Submit these along with the application to JAFZA for evaluation.
Step 5: Lease Office or Warehouse Space
Choose the type of physical space you need based on your business model, office, warehouse, or flexi-desk. Lease agreements must be signed and submitted to JAFZA. This step is mandatory for license issuance.
Step 6: Pay Fees and Obtain JAFZA Licenses
Once your application is approved, you will need to pay the necessary fees. After payment, you will receive your JAFZA license, which is typically valid for one year and renewable annually.
Step 7: Open a Corporate Bank Account
Use your trade license and company documents to open a corporate bank account in the UAE.
Step 8: Apply for Visas
Apply for investor, partner, and employee visas through JAFZA. The number of visas you can apply for depends on your office size and business activity. JAFZA assists with visa application, medical tests, Emirates ID, and residency permits.
How Much Does Jebel Ali Free Zone Business Setup Cost?
Setting up a business in JAFZA typically involves several costs. The company registration fees range from AED 5,000 to AED 15,000, depending on the company type (FZE, FZCO, or branch).
Annual license fees vary based on the activity; trading licenses start around AED 5,500, while general trading and logistics licenses can go up to AED 30,000. You’ll also need to rent office or warehouse space, which usually costs between AED 23,000 and AED 30,000 per year.
Additional fees include establishment cards, visas, medical tests, and other administrative costs, which can add several thousand dirhams more.
For exact pricing and options tailored to your business, consulting our business setup advisor is recommended.
Simplify Your Expansion with Expert Support
Expanding into the Middle East doesn’t have to be complicated, especially when you have the right partner. That’s where AE Business Setup steps in: turning complex steps like licensing, paperwork, leasing, and visas into simple actions. With personalised strategies and hands-on PRO support, we don’t just help you start your business, we help you build it smarter, faster, and with confidence. Ready to make JAFZA your next big move? Let’s make it happen together.
