Umm Alhoul Free Zone — Investor Guide
Umm Alhoul Free Zone is the industrial and logistics hub within Qatar’s free zone infrastructure. Administered by the Qatar Free Zones Authority (QFZA) and located adjacent to Hamad Port in the Mesaieed Industrial Area, Umm Alhoul is designed for businesses that require physical operational infrastructure — manufacturing, warehousing, logistics, trading, and industrial services.
Location and Connectivity
Umm Alhoul’s defining advantage is its proximity to Hamad Port, Qatar’s primary deep-water commercial port. The zone is approximately 40 kilometers south of central Doha, connected by the Mesaieed-Doha highway.
Hamad Port handles container, bulk, general, and livestock cargo across multiple terminals. For businesses engaged in import, export, re-export, or transit trade, the adjacency to port facilities reduces transportation costs, handling time, and supply chain complexity.
The zone also benefits from proximity to the Mesaieed Industrial Area, which hosts QatarEnergy’s refining and petrochemical operations, creating a natural industrial cluster for energy services, chemical processing, and supporting activities.
Eligible Activities
Umm Alhoul targets the following activity categories:
- Manufacturing — Light and medium manufacturing, assembly, food processing, and industrial production
- Logistics and Warehousing — Third-party logistics (3PL), distribution, cold chain, and general warehousing
- Trading — Import, export, re-export, and transit trade operations
- Marine Services — Ship supply, vessel maintenance, and port-related services
- Food Processing — Production, packaging, and distribution facilities leveraging proximity to port import channels
- Industrial Services — Equipment maintenance, fabrication, and technical services supporting the energy and construction sectors
Tax and Ownership Structure
| Feature | Detail |
|---|---|
| Foreign Ownership | 100% permitted |
| Corporate Tax | 0% for 20 years |
| Personal Income Tax | None |
| Import Duty | Exempt within zone |
| Export Duty | None |
| Profit Repatriation | 100% unrestricted |
| Currency Controls | None (QAR pegged to USD) |
The zero corporate tax regime extends for 20 years from the date of licensing, providing a two-decade planning horizon for tax-efficient operations. Goods imported into the zone are exempt from customs duties, and goods re-exported from the zone similarly avoid duty obligations. Goods entering the domestic Qatari market from the zone are subject to standard customs treatment.
Infrastructure
Umm Alhoul provides purpose-built infrastructure for industrial and logistics operations:
- Warehousing — Pre-built and build-to-suit warehouse facilities ranging from standard dry storage to temperature-controlled and cold chain units
- Industrial Land — Plots available for lease for custom-built manufacturing and processing facilities
- Office Space — Supporting office facilities within the zone for management and administrative functions
- Utilities — Industrial-grade electricity, water, and telecommunications infrastructure
- Road Network — Internal road system connected to the national highway network
The QFZA provides infrastructure on a lease basis, with terms and pricing that vary by facility type, size, and lease duration. Build-to-suit arrangements are available for larger tenants with specific requirements.
Setup Process
- Expression of Interest — Submit preliminary application to QFZA outlining the proposed activity, space requirements, and investment plan
- Pre-Approval Assessment — QFZA evaluates the application against zone priorities and available capacity
- Formal Application — Submit complete documentation including corporate certificates, financial statements, business plan, and key personnel details
- Lease Negotiation — Agree terms for warehouse, industrial land, or office space
- License Issuance — QFZA issues the free zone license upon approval
- Visa Processing — Apply for employee residency permits through QFZA’s immigration framework
- Operational Setup — Facility fit-out, equipment installation, and operational commissioning
Typical Timeline: 6-12 weeks from formal application to license issuance, with additional time for facility preparation depending on the complexity of the operation.
Cost Considerations
Licensing fees, lease costs, and service charges in Umm Alhoul are structured to be competitive with regional alternatives, including Jebel Ali Free Zone in Dubai, Khalifa Industrial Zone in Abu Dhabi, and Saudi Arabia’s industrial zones.
Lease rates for warehousing and industrial land are generally below equivalent mainland commercial rates, reflecting the zone’s policy-driven pricing strategy. Specific pricing is negotiated based on space requirements, activity type, and lease duration.
Employee visa costs, utility charges, and municipal service fees are additional operating expenses that should be incorporated into financial models.
Strategic Positioning
Umm Alhoul is best suited for businesses that meet three criteria: they require physical operational infrastructure, they benefit from port proximity, and they can leverage Qatar’s position as a trade node between Asia, Africa, and Europe.
The zone’s competitive advantage is most pronounced for re-export and transit trade operations leveraging Hamad Port’s connectivity, food processing and distribution serving Qatar’s import-dependent food supply chain, and industrial services supporting QatarEnergy’s operations and the North Field Expansion supply chain.
For businesses without physical infrastructure requirements, the QFC or QSTP may provide a more capital-efficient alternative. Umm Alhoul’s value proposition is explicitly tied to its industrial character and port adjacency.