According to the World Federation of Free Zones, a free zone is a portion of clearly defined and isolated land or setting, with a special tax, customs and imports regime, usually involving a status of extra-territoriality.
The main idea of establishing free zones in the UAE was for them to serve as a central business hub for companies willing to conduct business in the outer world, not specifically in the UAE. Therefore, UAE free zone companies are intended to operate within the corresponding free zone as a hub for the worldwide operations and are not licensed to operate within the rest of the UAE.
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