Manufacture of air and spacecraft and related machinery

Qualifying · 0% eligible

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Manufacturing is a Qualifying Activity under the Free Zone regime. Forensic audit will focus on the 'De Minimis' rule regarding non-qualifying revenue from technical consulting or training services often attached to aerospace contracts. If these services are not 'ancillary' to the manufacturing, they risk tainting the Qualifying Income status if they exceed the 5% or AED 5 million threshold.

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Legal Reference

Article 2, Clause 1(a) of Ministerial Decision No. 229 of 2025

Audit Red Flag

Inappropriate bundling of high-value Maintenance, Repair, and Overhaul (MRO) service contracts with the sale of goods to bypass the 9% service income threshold.

5 licensable activities under this classification

Aircraft ManufacturingExternal approval required

Aircrafts Parts and Accessories ManufacturingExternal approval required

Equipping Militry Aircrafts and its partsExternal approval required

Military Drones Equipping and their partsExternal approval required

Satellites ManufacturingExternal approval required

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