Free Zones have been around in the UAE for many years. They have been popular for holding a variety of assets from real estate to operating and trading companies.
Recently Free Zones have become far more specific in their uses and are catering for a more diverse and complex client base. They are certainly very useful planning tools in the arsenal of advisors to clients with UAE connections, and I believe their popularity will grow in the coming years. Will Free Zone companies become a wealth planning tool for high net worth families without a UAE nexus in the coming years? Only time will tell but they certainly have their appeal.
The use of Free Zone companies can be an important part of HNW clients‘ wealth planning strategies - either for the holding of specific assets or for the purpose of providing a home for family offices. And in a world where the expectations of clients is constantly rising, it is vital to fully understand all the planning tools available and apply them effectively.
This article provides an excellent comparison of the different Free Zones and their suitability for specific uses.
The “new wave” of free zones are so-called “themed”: they are limited to companies the business plan of which is in line with the zone’s title theme, be it media, internet or financial services.
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