Dubai’s Free Zones Set for Major Boost as Companies Seek Neutral Base Amid U.S. Tariff Surge

Dubai, April 26, 2025 — Dubai’s strategically positioned free zones are emerging as major beneficiaries of the shifting tides in global trade, as businesses worldwide respond to renewed U.S. tariff policies. With Washington reinstating higher tariffs on imports from China, Vietnam, South Korea, and other major manufacturing hubs, a growing number of companies are turning their focus to Dubai and the wider UAE as neutral, business-friendly destinations for restructuring their supply chains.

Industry experts highlight that Dubai’s extensive logistics infrastructure, political neutrality, and progressive regulatory framework offer companies a unique environment to safeguard against the uncertainties of ongoing trade tensions. Many firms are exploring ways to use Dubai’s free zones to relocate final assembly operations or light manufacturing activities. By doing so, they aim to change the country-of-origin status of their products under U.S. customs rules, thereby avoiding steep tariff penalties when exporting to the American market.

Dubai’s appeal is further reinforced by its world-class ports, efficient air cargo hubs, competitive tax environment, and robust legal protections for investors. These advantages are making the emirate increasingly attractive not just for manufacturers, but also for global trading houses, e-commerce companies, and supply chain specialists seeking a stable regional base.

However, the landscape is not without challenges. The UAE’s own aluminum exports to the U.S., valued at over $1.4 billion annually, are now subject to a 25% tariff under the new U.S. trade measures. Additionally, concerns are rising that U.S. customs authorities may begin closely scrutinizing transshipment activities and minimal value-added processes, potentially complicating the traditional re-export model that has long been a pillar of Dubai’s economy.


Real estate analysts point out that while short-term risks exist — particularly regarding leasing confidence in key logistics corridors — the medium to long-term outlook remains positive. Demand for industrial and warehouse spaces in Dubai’s free zones is expected to rise sharply as companies realign operations to more tariff-neutral jurisdictions.

Furthermore, Dubai’s continuous focus on regulatory modernization, ease of doing business, and investment in new free zones tailored to emerging industries such as technology, green energy, and fintech places it in a strong position to absorb and grow amid the global trade realignment.

In a world increasingly fragmented by protectionist policies, Dubai is positioning itself not just as a beneficiary of shifting supply chains but as a resilient global hub for trade, logistics, and innovation.

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