Manufacture of batteries and accumulators

Under MD 229 of 2025, the manufacture of batteries involves complex chemical and mechanical transformation, qualifying as 'Manufacturing of goods or materials'. Forensic focus remains on the 'Designated Zone' requirement for the sale of goods to ensure the 0% rate applies to income from mainland or foreign customers, provided the goods are not 'consumed' within the Free Zone.

Audit Red Flag

Artificial fragmentation of the production cycle where high-value CIGA is performed by a mainland parent while the Free Zone entity only performs 'light assembly' or 'packaging'.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.