The Dubai Freezone Company (FZCO) is one of three existing company forms in the UAE. It is a separate form of company from the UAE domestic (mainland). Your company is registered in a separate free trade zone and has a special status.
This special status allows - independent of the locals and the local laws in the UAE mainland - to conduct international business tax-free and without bureaucracy. The so-called Freezone Companies have a separate legislation in the respective Freezone. This is based on the British Common Law and differs from the local Sharia Law. In contrast to an offshore company, it is possible to obtain a so-called residence visa through employment in one's own freezone company. This forms the essential nexus to the UAE for opening a bank account - regardless of whether the visa holder lives full time in the UAE or only enters the country for 1 day every 6 months.
The Dubai Freezone company is the perfect hybrid of offshore company and mainland company.
With offshore status and the possibility of a residency visa at the same time, the best of both worlds is combined. A classic offshore company cannot obtain business accounts due to the lack of a residency visa option. A mainland company is unsuitable for international business with VAT liability, accounting liability and 9% business tax under Sharia Law.