Manufacturing is a Qualifying Activity under the Free Zone regime. Forensic audit will focus on whether 'Substantial Transformation' occurs within the zone. If the entity merely assembles imported kits (CKD) without significant value-add, the FTA may reclassify the activity as 'Trading', which has different nexus and DZ requirements.
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Legal Reference
Article 2, Clause 1(a) of Ministerial Decision No. 229 of 2025
Audit Red Flag
Intermingling of 'Manufacturing' income with 'Retail/Showroom' income from non-business persons (B2C) which is excluded from the 0% regime.
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Which UAE zones permit this activity?
Scout checks the current permission status for this activity across every UAE zone against your specific structure.