Dubai Airport Free Zone On Track

by Lorys Charalambous, Tax-News.com, Cyprus

02 June 2010

Dubai World Central, the 140 sq km zone established to house the Al Maktoum Airport – due to be the largest airport in the world – is to have its first phase opening on June 27. The zone was recently ranked the second most attractive tax-free zone in terms of its offerings internationally, and is set to expand its leasable space by 90% by 2012, drawing in interest from an estimated 1,000 additional companies seeking to set up shop.

The airport, which will be ten times larger than the existing airports in Dubai, the Dubai International Airport and Dubai Cargo Village, is forecast to receive passenger traffic of 46 million in 2010, growing to 100 million by 2020.

Sheikh Ahmed bin Saeed Al Maktoum, President of Dubai Civil Aviation Authority and Chairman of Dubai Airports has dismissed rumours of delays to Dubai World Central, slated to be the world’s first fully-integrated, multi-modal logistics platform within a single, customs-controlled zone.

Dubai Airport Free Zone has been recently recognized in the Foreign Direct Investment Magazine as the best Free Zone in the Middle East region, and second in the world.

The Free Zone’s facilities and incentives have to-date attracted over 1,450 companies, a number that is set to increase dramatically in the build up to the airport’s full opening. The Free Zone offers a number of incentives to prospective investors, including: exemption from corporate income tax, import and export taxes, and personal income taxes; no customs duties; no restrictions on foreign ownership; no currency restrictions; and no restrictions or taxes on the repatriation of capital and profits.

In the Foreign Direct Investment Magazine’s report, Shanghai Waigaoqiao Free Trade Zone was placed first, while Mexico-based Free Zone, San Luis Potosi, received third place.

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