Compare DAFZA - Dubai Airport Free Zone and Dubai South Free Zone for Aviation & Aerospace setup. Side-by-side comparison of fees, processing times, substance, and bank approval.
DAFZA - Dubai Airport Free Zone vs Dubai South Free Zone for Aviation & Aerospace: DAFZA - Dubai Airport Free Zone starts at AED 22,040 (92% bank approval) and Dubai South Free Zone at AED 12,500 (88%). On Year-1 cost, Dubai South Free Zone is the lower-priced option.
| Jurisdiction | Baseline Gov Fee | Processing Speed | Banking | Suited For |
|---|---|---|---|---|
| AED 22,040 | 3-5 days | Moderate | Premium location near Dubai Airport, ideal for import/export and trading | |
| AED 12,500 | 2-4 days | Moderate | Aviation hub, logistics near Al Maktoum Airport, affordable Dubai option |
Premium location near Dubai Airport, ideal for import/export and trading
Aviation licences are restricted to specific free zones with aviation infrastructure such as Dubai Airport Freezone (DAFZA), Skycity, and specialised aerospace zones. General Civil Aviation Authority (GCAA) approval is required for most aviation activities. Activities may include aircraft management, MRO services, aviation training, and charter operations.
Aviation transport services qualify as a qualifying free zone activity. International air passenger and cargo transport are zero-rated for VAT. Domestic air transport and ancillary services may attract 5% VAT.
Aviation companies should expect banks to request GCAA certification, aircraft registration documents, and insurance certificates. High-value transactions in this sector trigger additional compliance checks. Banks with specialised aviation finance desks can offer tailored products.
DAFZA is the only free zone integrated within an international airport in the Middle East, giving aviation services companies direct airside access and MRO (maintenance, repair, overhaul) facilities adjacent to DXB's runways.
Dec 2025: AWOT Global Logistics opened HQ
2025: LEED Gold certification for Building 8W
2025: Dubai CommerCity expansion
Company setup in DAFZA - Dubai Airport Free Zone starts from AED 22,040 per year.
DAFZA - Dubai Airport Free Zone processes company registrations in 3-5 working days.
Bank account approval probability is 92%. Banking difficulty is rated Moderate.
Most UAE free zones including DAFZA - Dubai Airport Free Zone allow remote company incorporation. Bank account opening may require an in-person visit.
DAFZA - Dubai Airport Free Zone does not require paid-up share capital for most standard license types. Share capital is notional.
Both zones are evenly matched. Choose DAFZA - Dubai Airport Free Zone if: Premium location near Dubai Airport, ideal for import/export and trading. Choose Dubai South Free Zone if: Aviation hub, logistics near Al Maktoum Airport, affordable Dubai option.
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