Best UAE free zones for importers: JAFZA, KEZAD, SAIF, Hamriyah and RAKEZ compared

How duty suspension works in a UAE free zone

Under the GCC Common Customs Law, UAE free zones are treated as areas where goods from outside the GCC can be stored, traded, repacked and re-exported without paying customs duty. The duty is suspended, not cancelled: it becomes payable when the goods cross into the UAE mainland, or into another GCC state that collects it as the first point of entry. This makes a free zone useful when you do not yet know where the goods will end up, for example regional stock for Oman, Saudi Arabia, Kuwait, Iraq or Africa.

1. Arrive at a UAE portThe container is discharged at Khor Fakkan, Fujairah, Jebel Ali or Khalifa Port, depending on the 2026 routing.
2. Import to free zone declarationYour agent files an import-to-free-zone declaration; no duty is paid at this stage.
3. Bonded move to the zoneIf the port is not inside the zone, the truck moves under customs seal to the free zone gate.
4. Store, trade or repackGoods can be held, sold to other zone companies, relabelled or consolidated; the origin stays China.
5. Exit option A: re-exportA re-export declaration sends the goods abroad with no UAE duty.
6. Exit option B: free zone to localA free-zone-to-local declaration moves goods into the mainland; the 5% duty and 5% VAT are paid now.
7. Exit option C: transferGoods move to another free zone or bonded warehouse under suspension, with a transfer declaration.

Five free zones compared for traders

Routing in 2026: every zone here sits inside Hormuz

JAFZA, KEZAD, Hamriyah and RAKEZ are on the Gulf coast, and SAIF Zone is inland at Sharjah, so in normal times containers from China would call Jebel Ali or Khalifa Port directly. As of November 2026 major container lines still avoid the Strait of Hormuz, and cargo for these zones is discharged at Khor Fakkan or Fujairah on the east coast and trucked across under customs seal, or arrives via Sohar in Oman through the Dubai–Oman Green Corridor at Hatta. Duty stays suspended on the way if the move is filed as bonded transit. Our China–UAE service runs this way: sea to Khor Fakkan and bonded truck to Jebel Ali, typically 18–30 days door to door.

Duty suspension rules you must follow

• Every movement needs a declaration: import to free zone, transfer, re-export or free zone to local. Moving goods out without one is a customs violation.
• Duty and VAT are paid on the value of goods when they enter the mainland, on the CIF basis, at 5% duty plus 5% VAT on CIF plus duty.
• Repacking, relabelling or consolidating in the zone does not make goods UAE or GCC origin; they stay Chinese origin.
• Goods sent to another GCC state from the zone pay duty there as the first point of entry, plus that state's VAT (for example 15% in Saudi Arabia).
• Regulated products still need their approvals, such as ECAS or TDRA, when they enter the mainland.
• Keep stock records that match customs declarations; zone authorities and customs can audit them.
• Sanctions screening applies to every re-export. We screen all parties and destinations and do not handle shipments that fail review.

Free zone or mainland: which do you need?

If most of your goods are sold in the UAE soon after arrival, a mainland importer with its own customs code is simpler, and the duty is paid once at clearance. If you hold stock for several countries, or you are not sure where it will be sold, a free zone keeps the duty in your pocket until you know. Use the landed cost calculator to see what is suspended on one shipment.

Checklist before you choose a zone

Frequently asked questions

General information checked on the date shown. Rules and rates change: our team confirms the details for your shipment.