Dubai Free Zone Comparison.
The UAE has more than forty free zones. Most comparison tables review all of them and help you decide nothing. This one covers the eight we actually file in — on cost, activity fit, visa quota and the question that decides more outcomes than price: whether a bank will open the account.

Dubai free zone comparison at a glance.
Which zone suits which business, what each costs, and the three things that matter more than the licence fee.
UAE free zones compared
Every zone here is one we actually file in, so the notes come from practice rather than from a brochure. Costs shown as a Sovera price are ours; the rest are market reference points and move frequently.
| Free zone | Emirate | Entry cost | Timeline | Banking odds | Audit | Best for |
|---|---|---|---|---|---|---|
| Meydan | Dubai | $4,500 all-in | 3–7 days | Strong | Not routine | Founders, consultancies, lowest-cost Dubai address |
| DMCC | Dubai | $6,500 | 12–20 days | Strongest | Within 180 days | Commodities, crypto, institutional credibility |
| IFZA | Dubai | ~AED 12,900 | 3–5 days | Strong | Not routine | SMEs and consultants wanting a Dubai address |
| DIFC | Dubai | On request | 4–8 wks | Strongest | Required | Regulated finance, common law, funds |
| ADGM | Abu Dhabi | ~AED 5,505+ | 4–8 wks | Strong | Required | Common law at lower cost, tech, funds |
| DAFZA | Dubai | ~AED 25,000+ | 2–4 wks | Strong | Required | Air cargo, aviation, high-value trading |
| RAKEZ | Ras Al Khaimah | ~AED 6,000 | ~5 days | Moderate | Varies | Manufacturing, warehousing, dual licensing |
| UAQ Free Zone | Umm Al Quwain | ~AED 5,500 | 3–7 days | Weakest | Not routine | Lowest cost where banking is already solved |
Figures marked as a Sovera price are our all-in fee. Figures in AED are published market entry rates gathered in August 2026 and are indicative only — free zone authorities revise fees frequently and packages vary by visa count, activity and office type. “Banking odds” reflects our own experience of onboarding companies from each zone with UAE banks, not a published metric. Every zone in this table offers 100% foreign ownership and the same corporate tax position: 9% above AED 375,000, with 0% available only to a Qualifying Free Zone Person on qualifying income.
The eight UAE free zones we file in
What each one is genuinely good at, and the constraint that comes with it.
Meydan — the practical default
The cheapest credible Dubai address, from $4,500 all-in with us. Licence in 3 to 7 working days or under an hour through the instant route, flexi-desk included, no NOC requirement, and a broad activity list. Banks are comfortable with it. This is where Sovera itself is licensed, which is also why we know exactly how its renewals and filings behave.
Meydan formation →DMCC — when you will be diligenced
The most recognised commercial free zone in the UAE, and the strongest banking outcomes of any non-financial zone. Suits commodities, crypto and any structure institutional counterparties will examine. Two costs to plan for: a higher entry fee at $6,500 with us, and audited financial statements filed within 180 days of financial year end, every year.
DMCC formation →IFZA — Dubai address, lower cost
Around AED 12,900 for a zero-visa package, rising to roughly AED 18,500 with visas, and setup in 3 to 5 business days with initial approval inside 24 to 48 hours. Over 1,500 activities with up to three under one licence. Visa quota is bought separately from the office package, which makes headcount easy to scale without changing zone.
Service businesses, SMEsDIFC — common law, own courts
An independent common-law jurisdiction with its own courts and its own regulator, the DFSA. The only real answer for regulated financial activity in Dubai, and the strongest choice where English-law documentation or institutional lenders are involved. It is also the most expensive mainstream route: Year 1 can exceed AED 100,000 once a physical office is included.
DIFC formation →ADGM — DIFC economics, better price
Abu Dhabi’s common-law jurisdiction, with its own courts applying English law directly. Entry pricing starts far below DIFC — published rates from around AED 5,505 for tech startups — while offering a comparable legal framework. The trade-off is Abu Dhabi rather than Dubai, which matters for some client-facing businesses and not at all for holding and fund structures.
Funds, tech, holdingDAFZA — air cargo and aviation
Dubai Airport Free Zone, adjacent to the airport and built for air-freight-dependent trade, aviation services and high-value goods. Premium tier at roughly AED 25,000 and upward, considerably more with warehousing. Strong banking. If your goods move by air and speed to aircraft matters, the location premium is the product.
Air freight, aviationRAKEZ — industrial value
The best value in the UAE for anything with a warehouse or a production line. All-inclusive packages from around AED 6,000, visas processed in about five business days, and dual licensing that gives a partial route to mainland activity. The constraints are honest ones: a Ras Al Khaimah address rather than Dubai, and banking that takes more work than a Dubai zone.
Manufacturing, warehousingUAQ Free Zone — lowest cost, real trade-off
Among the cheapest entry points in the UAE, with zero-visa licences from roughly AED 5,500. It is a legitimate free zone with full 100% ownership and the same corporate tax position as any other. The trade-off is the one nobody advertises: banking is materially harder. Sensible where the account is already solved or where the entity does not need one.
Budget, banking solvedZone advice from a firm
licensed in one.
Meydan Commercial Licence 2531729. We will tell you which zone fits, including when the honest answer is none of them.
Free zone banking: the thing nobody compares
Every comparison table you will read ranks free zones by licence fee. In practice the zone you choose changes your odds of opening a UAE bank account more than it changes your cost — and a company that cannot open an account cannot trade.
How zones actually rank for banking
- Strongest: DIFC, ADGM, DMCC. Regulated or heavily diligenced zones that banks already understand.
- Strong: Meydan, IFZA, DAFZA. Dubai addresses with established onboarding history.
- Moderate: RAKEZ. Workable, but expect more questions and a longer process.
- Hardest: UAQ, Ajman, Sharjah zones. Cheapest licences, most friction, and several banks decline on the address alone.
This is our own experience of onboarding companies from each zone, not a published ranking. It moves with bank appetite, and it moves faster than free zone fees do.
What the bank is actually assessing
- The zone, as a first-pass filter on the application.
- Whether a signatory holds an Emirates ID — a resident signatory materially improves the outcome.
- Whether the activity is coherent with the trade licence and the stated flow of funds.
- Substance — a flexi-desk with no local footprint invites the questions a real office avoids.
- Shareholder nationality and source of wealth, screened before the file reaches a decision.
We prepare and submit these applications and run our own screening first as a UAE-supervised trust and company service provider, which is why our files clear more predictably. Approval still rests with the bank, always.
The false economy
- Save AED 7,000 on the licence, then spend three months failing to open an account.
- Re-licensing into a stronger zone costs the original fee again, plus the new one, plus the lost quarter.
- An unbanked company still owes its renewal, its corporate tax registration and its return.
- Ask the question before you pay: which banks onboard companies from this zone, and what is the realistic timeline.
If a provider cannot answer that question about the zone they are selling you, they have not opened an account from it recently. See UAE corporate bank accounts for how the process actually runs.
How to choose a free zone in Dubai
Five questions in order. Answer them in this sequence and the shortlist narrows to one or two zones without ever comparing a price list.
Is my activity permitted?
Not every zone permits every activity, and this eliminates most of the list immediately. Virtual assets sit with DMCC and a small number of others. Media suits SHAMS or DIFC. Industrial manufacturing needs RAKEZ, JAFZA or KIZAD. Regulated financial services means DIFC or ADGM and nowhere else. Confirm the activity first; compare cost last.
Eliminates most zonesWill a bank open the account?
The second filter, and the one that decides whether the company functions. Dubai zones onboard most easily; northern-emirate zones are materially harder. If you have no existing UAE banking relationship and no resident signatory, weight this above price — because the licence is worthless without the account.
See banking →Who will diligence me?
If institutional investors, lenders or enterprise customers will examine the entity, the zone becomes part of your credibility. DIFC, ADGM and DMCC carry weight that a budget zone does not. If your counterparties are small commercial clients who will never look, that premium buys nothing and Meydan or IFZA does the same job for less.
Credibility premiumHow many visas?
Visa quota is usually tied to the office package, so headcount plans change the zone. IFZA lets you buy quota separately from the office, which scales cleanly. RAKEZ processes visas in about five business days and bundles them cheaply. If you need twenty visas, the zones that suit a solo founder stop making sense.
Quota drives packageWhat does Year 2 cost?
Almost every advertised figure is a Year 1 promotional rate. Year 2 renews at full price and adds a corporate tax return, visa renewals, and an audit where the zone or your QFZP claim requires one — DMCC within 180 days of year end, for instance. Ask for the Year 2 number in writing before committing to the Year 1 one.
The real costShortcuts by business type
Commodity trading → DMCC. Manufacturing or warehousing → RAKEZ or JAFZA. Regulated finance → DIFC or ADGM. Air freight → DAFZA. Consultancy or services on a Dubai address → Meydan or IFZA. Holding shares → any of them, since holding is a qualifying activity everywhere. Lowest possible cost with banking already solved → UAQ.
Start hereUAE free zone cost comparison: what the headline hides
How much does a UAE free zone company cost?
| Cost component | Typically in the headline? | What it adds |
|---|---|---|
| Trade licence and registration | Yes | The advertised figure |
| Flexi-desk or office allocation | Usually in Dubai zones | Included at Meydan and IFZA; extra elsewhere |
| Establishment card | Rarely | Required before any visa can be issued |
| Investor visa, medical, Emirates ID | No | Often the largest single addition; IFZA adds roughly AED 2,000–3,000 per visa |
| Corporate bank account | No | Separate, and the slowest step at 2–6 weeks |
| Corporate tax registration and return | No | Compulsory annually in every zone, even at 0% |
| Audited financial statements | No | Required at DMCC, DIFC and ADGM, and for any QFZP claim |
| Year 2 renewal | No | Full price, with no promotional discount |
Three cost traps specific to zone choice
The visa-quota trap. Quota is usually tied to the office package, so a licence priced for a solo founder becomes a different product at five employees. IFZA is unusual in letting quota be bought separately, which is why it scales more cleanly than its price suggests.
The audit trap. A budget zone with no audit requirement looks cheaper until you claim the 0% rate, because audited financial statements are a Qualifying Free Zone Person condition regardless of what the zone demands. DMCC, DIFC and ADGM require an audit anyway, so that cost is already inside their higher fee rather than added to a lower one.
The re-licensing trap. You cannot move a company between free zones by amendment. Choosing on the Year 1 headline and discovering the banking or activity problem afterwards means forming again in the right zone and paying twice, plus the lost quarter. This is the most expensive mistake on this page and it is entirely avoidable at the decision stage.
Free zone corporate tax: identical in every zone
Zones compete on cost, activity and prestige. They do not compete on tax, and any provider implying otherwise is selling you something that is not theirs to sell.
The corporate tax position is federal and identical across every UAE free zone. There is no zone with a better rate, no zone that exempts you, and no zone that makes qualifying easier. Every free zone company is inside the regime at 9% above AED 375,000, and the 0% rate applies only to a Qualifying Free Zone Person on its Qualifying Income.
What varies by zone is not the tax rate but your ability to evidence the conditions. QFZP status requires adequate substance, audited financial statements, transfer pricing compliance and non-qualifying revenue within the de minimis threshold. A zone that already requires audited accounts — DMCC, DIFC, ADGM — means one QFZP condition is met as a matter of course. A budget zone with no audit requirement leaves you to commission one anyway if you intend to claim 0%.
And the activity question cuts across all of it: a zone permitting an activity tells you nothing about whether that income qualifies. Holding of shares is a Qualifying Activity in every zone. Consultancy is a Qualifying Activity in none of them. The zone does not change that answer.
Above AED 375,000. The 0% is a federal relief for Qualifying Free Zone Persons on qualifying income — not a benefit any zone can offer you.
| Question | Answer, in every zone |
|---|---|
| Standard corporate tax rateFederal, above AED 375,000 | 9% |
| Rate for a Qualifying Free Zone PersonOn qualifying income only | 0% |
| Does the zone affect the rate?The regime is federal | No |
| Is holding a Qualifying Activity?Ministerial Decision 229 of 2025 | Yes |
| Is consultancy a Qualifying Activity?Not on the list | No |
| De minimis thresholdNon-qualifying revenue ceiling | Lower of AED 5m or 5% |
| Corporate tax registration and filingEven where the rate is 0% | Compulsory |
| Personal income tax on distributionsNone in the UAE | 0% |
Stated from Federal Decree-Law No. 47 of 2022, Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 229 of 2025. See Dubai company formation for the full free zone versus mainland tax comparison, and Dubai holding company for the one activity where the 0% claim is straightforwardly true.
Other major UAE free zones we file in on request
These are legitimate zones we will use where the activity or economics point to them. They are listed briefly rather than reviewed in depth, because we file in them less often and would rather say so.
JAFZA
Jebel Ali. Port access, large-scale logistics and trading, generous visa quotas. Premium tier pricing and the right answer where sea freight and warehousing drive the business.
SHAMS — Sharjah Media City
From around AED 5,750. Strong for media, content and freelancers, and among the cheapest routes into a UAE licence. Sharjah address, so weight the banking question.
SPC Free Zone
Sharjah Publishing City. Zero-visa packages from roughly AED 5,500 to 6,500, quick issuance, broad activity list for a budget zone.
Ajman Free Zone
Among the cheapest entry points in the UAE, with licences quoted from around AED 4,888. The banking constraint is the most acute of any zone we deal with.
KIZAD
Abu Dhabi industrial city. Heavy industry, manufacturing and logistics at scale, with land and warehouse options RAKEZ and JAFZA compete for.
Hamriyah Free Zone
Sharjah. Industrial and marine-facing, with competitive land rates. Suits manufacturing where a Sharjah base is workable.
Dubai Silicon Oasis & DIC
Technology-focused Dubai zones with sector clustering. Reasonable middle ground for tech businesses wanting a Dubai address and peer proximity.
twofour54 & Masdar City
Abu Dhabi. Media and creative industries at twofour54; clean technology and sustainability at Masdar. Sector-specific incentives where you genuinely fit the cluster.
Free zone selection mistakes we are asked to fix
These are the cases that arrive at our desk already formed elsewhere. Every one was avoidable at the decision stage and expensive afterwards.
| The mistake | What it costs | The fix, before you pay |
|---|---|---|
| Chose the cheapest zone, cannot open a bank account | A lost quarter, then re-licensing at full price | Ask which banks onboard from that zone |
| Activity not permitted, discovered after payment | New licence in a different zone | Confirm the activity list first |
| Took one activity, needed three | Amendment fee and processing delay | Bundle up to three related activities at the outset |
| Priced Year 1 only, surprised by Year 2 | Renewal at full price plus audit and tax filing | Get the Year 2 figure in writing |
| Assumed the zone gave 0% tax | 9% assessed on income believed exempt | Check the activity against the Qualifying Activities list |
| Free zone company selling to UAE customers | Non-qualifying revenue; de minimis breach at scale | Take a mainland licence instead |
| Visa quota too small for the hiring plan | Upgrade package or change zone entirely | Size the quota to the 24-month plan |
| Budget zone with no audit, then claimed QFZP | Audit commissioned anyway, saving erased | Price the audit in from the start |
Dubai free zone comparison FAQ
Tell us the activity, we will name the zone.
What you will do, where your customers are, how many visas you need and whether you already bank in the UAE. We respond within twenty-four hours with a zone recommendation and a written quote.
Commercial Licence 2531729
DNFBP / trust and company services
Choose the right UAE free zone
A written recommendation within twenty-four hours: the zone that fits your activity, an honest read on banking odds, the Year 1 and Year 2 figures, and whether the 0% rate is realistic for what you do.
The corporate tax position is identical in every zone. What decides your rate is your activity, not your address — see UAE free zone corporate tax.