DAFZ for Electronics and ICT Companies
- 14/09/2026
- Posted by: Kenichi
- Categories: 2026, Company Setup, INSIGHTS_EN, Middle East, UAE
Insights
A DAFZ Base Strategy for Electronics and ICT Companies
Electronics, electrical, computing and ICT is the largest sector in DAFZ, at 28% of companies. With examples such as Epson Middle East FZCO, we explain why companies in this field choose DAFZ and how to plan the base.
RegionUAE / Dubai
TopicSector Strategy: Electronics
Reading Time9 min
UpdatedOct 2026
01 — Sector Share
The electronics, electrical and ICT sector in DAFZ
By sector, electronics, electrical, computing and ICT accounts for the largest share of companies based in DAFZ at 28%, well ahead of logistics, freight and aerospace (10%) and consulting, business development and investment (7%). Among the more than 3,400 companies in DAFZ, electronics and ICT is the zone’s core sector.
Its weight in trade is equally significant. Machinery (70%) and precious and semi-precious stones (25%) account for more than 95% of DAFZ’s trade, and the machinery and electrical equipment sector grew by 34% compared with 2024. The figures confirm that, for electronics and ICT companies, DAFZ is not just a base but a market where trade is actually moving.
- Electronics, electrical, computing and ICT is the largest sector, at 28% of companies in DAFZ.
- Trade in machinery and electrical equipment grew 34% compared with 2024.
- Machinery and precious/semi-precious stones make up more than 95% of DAFZ’s trade.
02 — Why DAFZ
Why electronics and ICT companies choose DAFZ
For electronics manufacturers, DAFZ’s location and infrastructure offer real practical advantages. Adjacent to Dubai International Airport and with 24/7 customs clearance, it suits product lines with fast import and export cycles for components and finished goods. Dubai International Airport also handled 92.5 million international passengers in 2025, which means ample opportunities to connect with talent and partners.
Epson Middle East FZCO is a case in point. It set up a branch in Dubai in 2017 and upgraded it to a regional headquarters (RHQ) company in August 2023. Its Dubai base grew from 20 to 130 people, and across the region — including Turkey, Kazakhstan, Ukraine, Israel, Saudi Arabia, Morocco, Kenya and South Africa — it oversees more than 80 countries through a network of 10 locations and over 300 people. The deciding factors it cited were proximity to markets, the depth of the talent pool, the quality of infrastructure and the airport hub.
Note
The practical recruitment and visa hurdles Epson Middle East FZCO faced as it expanded, and how it overcame them, are covered in our article on Epson Middle East FZCO.
03 — Ecosystem and Supply Chain
The ecosystem supporting electronics and ICT companies
DAFZ offers more than a regulatory framework; it has also built a surrounding digital and logistics ecosystem. The B2B marketplace Tradeling has more than 400,000 registered buyers, over 100,000 sellers and more than 7 million SKUs, with revenue above USD 600 million in 2025. For electronic components and equipment, it can serve as an established channel for developing sales.
Logistics and customs infrastructureDirect connection to Dubai International Airport and 24/7 customs clearance. Government counters for Dubai Customs, the Chamber of Commerce, Police and the Health Authority are located within the zone.
SustainabilityThrough “Green DAFZ”, the zone has cut power consumption by 48% and electricity use by 66%. With LEED and ISO certification, it makes it easier to meet ESG requirements across the supply chain.
On the financial side, several banks, including Mizuho Bank, have a presence in the zone, meeting Japanese companies’ settlement and remittance needs. Japanese electronics and electrical equipment companies such as Yamaha, Panasonic, Mitsubishi Power and Fujikura have already chosen DAFZ as their base.
04 — Setup Considerations
Practical points for setting up
For electronics and ICT companies setting up in DAFZ, the office and warehouse options depend on the scale of the business. A Business Boutique or Premium office is sufficient for sales and marketing functions alone, while companies holding inventory can choose an industrial warehouse unit (350 m² plus a 90 m² mezzanine office) or DAFZ Industrial Park, which includes cold storage (33 buildings; average 312 m² and 20 visas per unit). See our three-step setup guide.
Tip — In practice
A 0% corporate tax rate applies to companies that meet the Qualifying Free Zone Person (QFZP) requirements, but only to qualifying income. Where excluded transactions arise — such as certain sales of hardware to the mainland — that portion is taxed at 9%.
Summary
Electronics, electrical, computing and ICT is the largest sector in DAFZ, at 28% of companies, and trade in machinery and electrical equipment grew 34% year on year. From airport-linked logistics to digital channels such as Tradeling and sustainability credentials through Green DAFZ, the conditions for companies in this field are in place. In day-to-day operations, the choice of office or warehouse and a practical understanding of QFZP are the keys.
Disclaimer This article is provided for general information based on publicly available sources and does not constitute legal, tax, accounting or financial advice. While we take care to ensure accuracy and completeness, the content may change without notice. Please consult a qualified professional before making any specific decision.
© 2026 Biz Easy FZCO. All rights reserved.
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