Incentivising manufacturing: The customs duty implications for manufacturing entities in Dubai

Analysis

On the back of the UAE government's official policy of economic diversification, attracting manufacturers and incentivising manufacturing activity in the UAE is a core focus.

This article seeks to provide a high level outline of the current customs implications applicable to manufacturing entities in Dubai's mainland and free zone jurisdictions.

Customs Regime Applicable in the UAE's Mainland Jurisdiction 

A limited liability company (“LLC”) incorporated in the UAE's mainland jurisdiction, under the commercial companies law, Federal Law No.8 of 1984, is required to be owned at least 51% by UAE natural person or a corporate entity which is wholly owned by UAE nationals. The new federal commercial companies law, expected to come into force in mid-July 2015, maintains this requirement.

Importing into the UAE