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Free Zones Of UAE
- Abu Dhabi Airport Free Zone (ADAFZ)
- Abu Dhabi Ports Company (ADPC)
- Khalifa Industrial Zone Abu Dhabi (Kizad)
- Masdar City
- twofour54
- ZonesCorp
- Dubai Airport Freezone (DAFZ)
- Dubai Auto Zone (DAZ)
- Dubai Biotechnology & Research Park (DuBiotech)
- Dubai Cars & Automotive Zone (DUCAMZ)
- Dubai Flower Centre (DFC)
- Dubai Gold and Diamond Park (DGDP)
- Dubai Healthcare City (DHCC)
- Dubai International Academic City (DIAC)
- Dubai International Financial Centre (DIFC)
- Dubai Internet City (DIC)
- Dubai Knowledge Village (DKV)
- Dubai Logistics City (DLC)
- Dubai Maritime City (DMC)
- Dubai Media City (DMC)
- Dubai Multi Commodity Centre (DMCC)
- Dubai Outsource Zone (DOZ)
- Dubai Silicon Oasis (DSO)
- Dubai Studio City (DSC)
- ENPARK
- International Media Production Zone (IMPZ)
- Intl. Humanitarian City (IHC)
- Jebel Ali Free Zone (JAFZA)
- TechnoPark (TP)
- Hamriyah Free Zone (HFZ)
- Sharjah Airport International Free Zone (SAIF-Zone)
- RAK Free Trade Zone Authority (RAKFTZ)
- RAK Investment Authority (RAKIA)
- RAK Maritime City (RAKMC)
- Fujairah Free Zone (FFZ)
- Ahmed Bin Rashid FZ (ABRFZ)
- Ajman Free Zone (AFZ)
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UAE Freezones Biz News Updates
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Setting up a business in the UAE
Generally speaking, in order conduct business in the UAE, it is necessary to
establish a legal presence in the UAE. This means entrepreneurs will have to
consider the option of setting up onshore in the UAE or in one of the UAE's
free zones. As with any other business, the choice between establishing
onshore or in a free zone will depend on many factors, including: the cost
of setting up; where the business' customers are located; the type of
business activity that will be carried on and any regulatory factors that
may affect the business. One example of a regulatory limitation is the UAE
Central Bank's Regulatory Framework for Stored Values and Electronic Payment
Systems, which prohibits payment service providers, or PSPs, from
incorporating in financial free zones, such as the Dubai International
Financial Centre (the DIFC).
When setting up a limited liability company onshore, foreign businesses will
need to be mindful of the requirement for 51 per cent of the shares to be
owned by a UAE national partner. This is not required for free zones
companies which permit 100 per cent foreign ownership. Neither of these
options is particularly seamless or economical when compared to setting up a
limited liability company in jurisdictions such as England.
Fundraising
It is often said that there is a financing gap for small and medium
enterprises (SMEs), which many fintech businesses will be here in the UAE in
the period between seed/angel funding (which could be loans/equity from
friends and family in the region of US$50,000) and the larger venture
capitalist firms (that may only be interested in dealing in investments of
US$5 million and above). Although we are still a long way behind our
colleagues in Silicon Valley, the UAE ecosystem has been developing rapidly
over the last few years and there are now a mix of financing options for
SMEs. Examples include government/free zone authority funds or incubator
schemes, angel/seed investors, venture capitalists/private equity,
traditional banks and crowd funding.
An equity-based fundraise gives investors proportionate ownership in the
business, in the form of shares, in exchange for capital. As the number of
investors in a business grows, so too does the number of shareholders. It is
important for entrepreneurs to consider the kinds of rights shareholders
will be afforded and how such rights will fit into the corporate legal
framework in the UAE.
In addition to raising capital through equity, entrepreneurs may also
consider more traditional forms of fundraising, such as credit facilities
offered by large financial institutions. While financial institutions are
able to offer sizeable loans, entrepreneurs will need to consider whether
the cost of such loans can be absorbed by the new company, and whether
entrepreneurs themselves are willing to give personal guarantees and
therefore take on the risk of repaying loans in the event that the business
is unsuccessful.
Lastly, as crowdfunding gains popularity as a fundraising mechanism in all
industries, entrepreneurs considering crowdfunding in the UAE need to be
aware of UAE charity and fundraising laws. For example, in Dubai, all
fundraising and advertisement of fundraising activity needs to be authorised
by the Islamic Affairs and Charitable Activities Department. Raising funds
for a business, where donors contribute money and do not receive anything in
return, would fall within the scope of the charity and fundraising rules.
Accelerators
The financial free zones have developed programs to alleviate some of the
challenges and risks associated with starting new fintech businesses in the
UAE.
The Abu Dhabi Global Market (ADGM) introduced RegLab as a means for
entrepreneurs to test their business ideas in a controlled environment.
RegLab allows entrepreneurs to develop and test their business ideas in a
safe environment with a reduced regulatory burden. RegLab authorises
participants to operate under a safe or incubator regulatory environment
before graduating to the full regulatory regime of the ADGM.
The DIFC has partnered with Accenture to develop a 12-week program for
entrepreneurs, FinTech Hive, which helps new business owners refine and test
their business proposition. In addition to assisting businesses transform an
innovative idea into a commercially viable business, FinTech Hive also
facilitates access to potential investors, including global financial
institutions, venture capital companies and other investors.
Seeking legal counsel
Fintech activity across the region is gaining momentum and the accelerator
programs highlighted above show a clear commitment on the part of UAE
authorities to develop and grow this sector. Navigating the complex set-up
process and regulations in the UAE can be a challenge for any business,
especially for fintech companies where many of the relevant regulations are
new and have not been tested.
Entrepreneurs should consider seeking legal counsel to ensure that the
appropriate entity is selected in line with the business' goals and that the
set-up process is carried out in a smooth and efficient manner.
March 22 2018 |
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Courtesy Globe Business Media Group
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Emirates Of UAE
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