Dubai free zones soften terms: what the DIEZ relief package really signals
The DIEZ authority — covering Dubai Airport Freezone, Dubai Silicon Oasis and Dubai CommerCity — froze rents on renewal, waived part of its fees and penalties and allowed monthly payment. What that says about office occupancy.
Dubai Integrated Economic Zones Authority (DIEZ) has announced a package of flexible economic measures for companies in its three zones — Dubai Airport Freezone, Dubai Silicon Oasis and Dubai CommerCity. Formally, the aim is to support tenants and reduce their operating burden.
What is on offer
- Rents frozen on contract renewal.
- Part of administrative fees and penalties waived, including late-renewal penalties on licences.
- Monthly rent payment with no additional commission.
- A three-month deferral of fees for shareholder changes, restructuring, capital changes and changes of activity.
How to read it
On paper this continues a standing pro-business course. In substance it is the set of measures taken when occupancy falls. Freezing rents on renewal and allowing monthly payment are tenant-retention instruments, not tenant-acquisition ones.
The context is known: not long ago getting an office in several free zones was effectively impossible — waiting lists ran to dozens of companies. Then a number of international players wound down their regional presence quickly and released prime space. Zones that were choosing tenants yesterday are courting them today.
Talk to a licensed broker: 📲 +971 50 120 32 64 on WhatsApp, @dubai_oleg on Telegram
The apparent contradiction with the office market
This is worth pausing on, because the figures point in opposite directions. Citywide office vacancy is at a record low of 6.1% and Grade B rents are up 31.5%. Simultaneously, certain free zones are softening terms. There is no contradiction: these are different markets.
Mainland offices in Business Bay and along Sheikh Zayed Road are being filled by growing local companies, now permitted to open onshore branches. Specialised free zones — Airport Freezone, Silicon Oasis, CommerCity — lived on international tenants, and it is that segment which proved most sensitive to regional conditions.
Practical takeaways
- For an office tenant — a moment to negotiate: these zones currently offer their best terms in years.
- For a commercial property investor — a reminder that "Dubai offices" is not one market, and average citywide vacancy says nothing about a specific zone.
- For an observer — the honest indicator here is not statements but which measures are chosen: retention always precedes acquisition.
Based on Dubai Integrated Economic Zones Authority announcements.
Video on this topic
The same subject on the English channel — each clip has a written version of its own.
21:45Furnished offices in Business Bay: Rove HQ and the fitted-office model16 October 2025
10:32Lumena Alta by Omniyat: Dubai’s most luxurious office tower12 October 2025
1:15Binghatti Circle in JVC: retail and offices at the entry level8 September 2025
6:43Retail in Maritime City: Danube Oceanz compared with Nautica by Select Group25 September 2023
7:59Investing in Dubai offices: why the numbers beat apartments20 October 2025
In the news
Other write-ups on the site about the same thing.
New Dubai office towers: Immersive Tower in DIFC, Aldar's Sheikh Zayed Road building and Bureau Lamar in Business Bay
Three major office schemes are rising around DIFC and Business Bay: Immersive Tower ($300m, 58 573 sq m, 2027), Aldar's 88 000 sq m tower by Emirates Towers metro (Q4 2027), and an office park with a theatre on Business Bay's largest plot. Vacancy in central clusters sits at 2–5%.
UAE office shortage: prime vacancy at 0.3% in Dubai and 0.1% in Abu Dhabi
JLL puts prime office vacancy at about 0.3% in Dubai and 0.1% in Abu Dhabi. In Q2 2026 Dubai Grade A rents rose 26.2% year on year and Grade B 31.5%; CBRE puts occupancy at 94% in Dubai and 96% in Abu Dhabi. What the squeeze means for office owners and buyers.
Grade A offices in Dubai: DMCC launches One Uptown Place and Two Uptown Place
DMCC is adding two office towers to Uptown Dubai — 21 and 15 storeys, more than 560 000 sq ft of Grade A space and 82 000 sq ft of retail. Leasing opens in the second half of 2026 and completion is due in Q1 2028, taking the district past 1m sq ft. What it means for nearby owners.
Dubai Investment Park: how letting commercial property differs from letting a home
In a mixed-use zone, apartments are not the only thing for sale. Offices and warehouses come with a different tenant, a different lease and different economics.
Dubai office rents: Grade B up 31.5% as vacancy falls to 6.1%
Grade B office rents in Dubai jumped 31.5% in a year, with Grade A and prime adding 14–26%. Citywide vacancy has dropped to a record-low 6.1%. What the office squeeze means for commercial property investors — and for residential demand.
Free zone plus mainland: UAE free zone companies can now open onshore branches
Since 1 January 2026, a company registered in a UAE free zone can officially open a mainland branch — serving the local market while keeping free zone benefits. How the hybrid works and what it means for business structures and the office market.