DIFC and JAFZA signed a MoU to streamline processes and synergies
Dubai International Financial Centre (“DIFC”) and Jebel Ali Free Zone (“JAFZA”) signed a Memorandum of Understanding (“MoU”) to enhance and streamline processes between the two free zones.
The agreement facilitates investments by DIFC entities into JAFZA companies, as well as structuring solutions for JAFZA businesses in the DIFC. It supports Dubai’s D33 agenda and strengthens the city’s offer to global businesses.
Family Businesses in JAFZA
JAFZA has long served as the base for many of the UAE’s largest family-owned businesses. Its integration with Jebel Ali Port, duty-free import and export regime, bonded warehousing, and strong industrial clusters in automotive, Fast-Moving Consumer Goods (“FMCG”), petrochemicals, and manufacturing make it a preferred location for long-term operations. JAFZA has access to 150+ shipping lanes and will soon be linked to Dubai’s new Etihad Rail freight network.
As the JAFZA businesses look to the future, succession and wealth transition are becoming increasingly important. While JAFZA provides the operational foundation (manufacturing, logistics, and access to international markets) many of these families are seeking structures that can institutionalize governance, protect assets, and secure wealth for future generations.
DIFC structures for succession and asset protection
DIFC addresses these needs through dedicated legal and financial structures, including holding companies, Special Purpose Vehicles (“SPVs”), family offices, and foundations. These vehicles enable JAFZA-based businesses to consolidate ownership, manage succession, and channel profits into international investments within a transparent and well-regulated jurisdiction.
It should be noted that Family Foundations and their holding companies may benefit from a tax-transparent regime, whereby UAE corporate tax is only payable at the level of the operating business, with no additional tax imposed at the level of the Foundation or its holding entities.
Example: Family-owned conglomerate
A family-owned conglomerate continues to run its logistic operations from JAFZA, while establishing a DIFC Foundation and holding structure to ensure governance, succession, and asset protection. Through holding companies/SPVs, the family can segregate different asset classes, including financial portfolios, international operating businesses, and private equity or venture capital investments.
In addition, the family may establish a Single-Family Office in DIFC to centralise administration and provide investment support across the group’s entities.
In case you would like to know more about the DIFC Foundation and DIFC Holding Company/SPV possibilities, or learn about different alternatives depending on your situation, do not hesitate to contact us.
