Manufacture of military fighting vehicles

Under MD 229 of 2025, the manufacture of military vehicles is categorized under 'Manufacturing of goods or materials'. Forensic audit must verify 'Substantial Transformation' within the Free Zone. If the entity merely performs 'Assembly' of imported kits (CKD/SKD) without significant value-add, the FTA may recharacterize the activity as 'Trading', potentially triggering the 9% rate if the counterparty is a non-Free Zone person.

Audit Red Flag

Misclassification of 'After-sales Maintenance, Repair, and Overhaul (MRO)' as 'Manufacturing' revenue to bypass the 5% de minimis threshold for non-qualifying services.

Which UAE zones permit this activity?

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