Umm Al Quwain Free Trade Zone has signed an investment promotion agreement with Port City Colombo, opening a new channel for businesses and investors looking at opportunities between the UAE and Sri Lanka.
The partnership brings together the Umm Al Quwain Free Trade Zone Authority, the Colombo Port City Economic Commission and CHEC Port City Colombo (Pvt) Ltd. Rather than being limited to a ceremonial agreement, the deal focuses on investment introductions, business referrals, information exchange and cooperation between companies operating in the two jurisdictions.
For companies based in UAQ Free Zone, the agreement could make it easier to explore Sri Lanka and the wider South Asian market. At the same time, businesses connected with Port City Colombo may gain a more direct route into the UAE through Umm Al Quwain’s growing free zone ecosystem.
Agreement Signed During Sri Lanka Investment Event in Dubai
The agreement was signed during the second edition of Sri Lanka Beyond Your Dreams, an investment-focused gathering held at Hilton Dubai Al Habtoor City on September 2, 2026. The event was organized by the Consulate General of Sri Lanka in Dubai and the Northern Emirates and brought together investors, government representatives, diplomats and business leaders.
More than 400 UAE-based executives, investors and institutional representatives reportedly attended. Senior officials at the event included UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi and Sri Lankan Minister of Foreign Affairs, Foreign Employment and Tourism Vijitha Herath.
Johnson Modayil George, General Manager of UAQ Free Trade Zone Authority, signed the agreement for the UAE side. Revan Wickramasuriya, Director General of the Colombo Port City Economic Commission, and Thulci Aluwihare, Deputy Managing Director of CHEC Port City Colombo, represented Port City Colombo.
What the UAQ Free Zone and Port City Colombo Agreement Covers
The agreement centers on promoting investment opportunities between Umm Al Quwain and Port City Colombo. Both sides are expected to share information about potential projects, connect investors with relevant organizations and facilitate introductions between businesses that may be interested in expanding into either market.
That kind of support can matter when companies enter a new jurisdiction. A business may already have funding, customers and a clear expansion plan but still struggle with questions around licensing, regulatory requirements, local contacts or the right market-entry structure.
By creating a formal relationship between the two economic zones, UAQ Free Zone and Port City Colombo can help shorten that discovery process and give companies a more direct starting point when exploring cross-border opportunities.
Port City Colombo Offers UAE Businesses a Gateway Into South Asia
Port City Colombo is being developed as a Special Economic Zone next to Colombo’s central business district. The project is designed to attract international businesses and investors across sectors such as financial services, technology, logistics, hospitality, real estate and internationally traded services.
The Colombo Port City Economic Commission serves as the regulatory authority and Single Window Investment Facilitator for the zone. Port City Colombo promotes incentives including full foreign ownership, repatriation of capital and profits, the use of designated foreign currencies and visa arrangements for qualifying investors and employees.
For UAE businesses already familiar with operating through free zones, some parts of that structure may feel familiar. That could make Port City Colombo a more approachable option for companies looking to establish a presence in Sri Lanka while positioning themselves closer to South Asian markets.
UAQ Free Zone Strengthens Its International Investment Reach
For Umm Al Quwain Free Trade Zone, the agreement expands its role beyond company formation inside the UAE. International partnerships can give free zone companies access to new markets while strengthening the zone’s attractiveness to entrepreneurs who view the Emirates as a base for wider regional expansion.
UAQ Free Zone already benefits from its location alongside Umm Al Quwain’s port infrastructure. Ahmed Bin Rashid Port and the surrounding commercial ecosystem support businesses involved in trading, logistics and other international activities.
Connecting that environment with Port City Colombo creates a relationship between two strategically located economic zones. One sits in the Gulf with access to the wider Middle East, while the other is positioned along major Indian Ocean trade routes with proximity to South Asia.
First Formal Port City Colombo Partnership With a UAE Free Zone Authority
The agreement has been described as Port City Colombo’s first formal partnership with a UAE free zone authority. That gives the deal particular significance as Port City Colombo continues building commercial relationships across Gulf markets.
The Sri Lankan economic zone has already been increasing its outreach in the region, including investment engagements in Oman and discussions with Gulf-based businesses looking at international expansion.
The partnership with UAQ Free Zone takes that effort directly into the UAE’s well-established free zone ecosystem. It also creates a practical channel through which Port City Colombo can engage companies already operating under a business model centered on international trade and regional expansion.
UAE and Sri Lanka Continue Building Stronger Investment Links
The agreement arrives as the UAE and Sri Lanka continue looking for ways to expand trade and investment cooperation. Sri Lankan officials have increasingly promoted the country to Gulf investors, while projects such as Port City Colombo have become central to efforts to attract more international capital.
In April 2026, Sri Lanka approved dozens of Businesses of Strategic Importance within the Colombo Port City Special Economic Zone. Those approvals included projects expected to bring additional foreign investment, employment and commercial activity into the country.
The UAQ Free Zone partnership adds another route for UAE-based investors to explore those opportunities. It does not guarantee investment flows on its own, but it gives companies an official connection they can use when evaluating whether Sri Lanka fits their expansion plans.
What the Agreement Could Mean for UAQ Free Zone Companies
For businesses established in Umm Al Quwain, the most immediate benefit may be easier access to information and contacts. Companies considering operations in Sri Lanka could potentially use the partnership to understand the Port City Colombo ecosystem, identify investment opportunities and connect with the organizations responsible for facilitating new businesses.
The opportunity could be particularly relevant for firms working in technology, financial services, consulting, logistics, digital services, hospitality and international trade. Several of these sectors align closely with the types of businesses already using UAE free zones as regional headquarters or international operating bases.
Not every company in UAQ Free Zone will need a Sri Lankan presence, of course. The more important point is that businesses now have an additional expansion channel available should South Asia become part of their growth strategy.
Free Zones Are Increasingly Competing on Global Connectivity
The partnership also reflects a broader change in how free zones position themselves. Licensing costs, office packages and ownership rules still matter, but international connectivity is becoming a bigger part of the proposition.
Entrepreneurs increasingly want a business base that can help them move into other markets rather than simply operate within one jurisdiction. Partnerships between economic zones can support that by creating institutional connections before individual businesses even begin exploring expansion.
The UAQ Free Zone and Port City Colombo agreement fits neatly into that shift. Umm Al Quwain gains a new connection into South Asia, while Port City Colombo gains access to companies and investors operating inside one of the world’s most active free zone markets.
For businesses looking at opportunities between the Gulf and South Asia, that connection could become useful long after the agreement itself leaves the headlines.
Sources
Dubai PR Network:
https://www.dubaiprnetwork.com/business-news/193834-uaq-free-zone-and-port-city-colombo-sign-agreement-to-promote-investment
Port City Colombo:
https://www.portcitycolombo.lk/