UAE Free Zone Glossary 2026 — Key Terms Explained
A comprehensive glossary of UAE free zone and business terms. Use this reference to understand UAE business setup documents and discussions.
In this guide:
Core UAE Business Terms
- Free Zone: A designated area in UAE with special regulations allowing 100% foreign company ownership and specific tax/customs benefits
- FZE: Free Zone Establishment — a UAE free zone company with a single shareholder
- FZCO: Free Zone Company — a UAE free zone company with two or more shareholders
- DED: Department of Economic Development — issues mainland UAE trade licences (each emirate has its own DED)
- MOA: Memorandum of Association — the founding document of a UAE company; sets out the structure and objectives
- Trade Licence: The official permission from the UAE authority to conduct specific business activities
- TRN: Tax Registration Number — 15-digit number issued by UAE FTA for CT and VAT purposes
UAE Visa and Residency Terms
- Emirates ID: UAE national identity card for all UAE residents; mandatory for banking, government services
- Entry Permit: The initial UAE travel document allowing a non-resident to enter UAE; converts to a residence visa
- Investor Visa: UAE residence visa for shareholders or owners of a UAE company
- Employment Visa: UAE residence visa for employees of a UAE company
- Dependent Visa: UAE residence visa for family members of a UAE resident
- GDRFA: General Directorate of Residency and Foreigners Affairs — the UAE immigration authority
- Golden Visa: 10-year UAE residence visa for investors, entrepreneurs, and specialists
UAE Tax and Finance Terms
- UAE CT: UAE Corporate Tax; 9% on business income above AED 375,000; effective June 2023
- FTA: Federal Tax Authority; UAE government body administering CT, VAT, and excise tax
- QFZP: Qualifying Free Zone Person; a UAE free zone company meeting specific conditions to access 0% CT on qualifying income
- VAT: Value Added Tax; 5% UAE consumption tax on taxable supplies
- DTAA: Double Tax Avoidance Agreement; treaty between UAE and another country preventing double taxation
- ESR: Economic Substance Regulations; requires UAE entities in certain industries to demonstrate real UAE activities
UAE Banking Terms
- IBAN: International Bank Account Number; UAE IBAN starts with “AE” followed by 21 digits
- SWIFT: Society for Worldwide Interbank Financial Telecommunication; international bank transfer network
- WPS: Wage Protection System; UAE mandatory system for salary payment through approved channels
- CBUAE: Central Bank of the UAE; regulates and supervises UAE banks