Manufacture of carpets and rugs

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

ISIC 1393 constitutes 'Manufacturing of goods or materials'. Under the 2025 framework, the 0% rate is contingent on the physical transformation of raw materials (yarn, dyes) into finished products within the zone. Auditors will verify electricity consumption logs and labor headcounts against production output to ensure CIGA is not being performed outside the zone.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3, Clause 1(a)

Audit Red Flag

Sub-contracting the actual weaving or chemical treatment processes to mainland UAE third parties (Tolling) while booking the full revenue under the Free Zone entity.

2 licensable activities under this classification

Carpets ManufacturingNo external approval required

Mats & Rugs ManufacturingNo external approval required

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