We will explore the cheapest free zones in UAE for 2025, focusing on their costs, benefits, and suitability for different types of businesses. The United Arab Emirates (UAE) is renowned for its business-friendly environment, offering numerous free zones that cater to entrepreneurs, startups, and established companies. Free zones are designated areas that provide tax exemptions, 100% foreign ownership, and streamlined business setup processes, making them highly attractive for investors.
Among these, several free zones stand out for their affordability, making them ideal for businesses with limited budgets. These cost-effective free zones offer competitive licensing fees, low operational costs, and flexible office solutions, enabling businesses to establish a presence in the UAE without significant financial strain.
What is a Free Zone in the UAE?
A free zone in Dubai is a designated economic area that offers businesses special incentives to encourage investment and growth. These zones are designed to attract foreign companies by providing benefits such as 100% foreign ownership, full repatriation of profits, tax exemptions, and customs duty benefits. Unlike mainland companies, businesses in free zones are not required to have a local Emirati sponsor, making them highly appealing to international investors.
Top 7 Cheapest Free Zones in Dubai and the UAE
1. RAKEZ Free Zone
RAKEZ, or the Ras Al Khaimah Economic Zone, is one of the most cost-effective free zones in the UAE. It offers a wide range of business activities and is particularly popular among small and medium-sized enterprises (SMEs). RAKEZ provides flexible licensing options, making it an ideal choice for startups and entrepreneurs.
The cost of setting up a business in RAKEZ is relatively low compared to other free zones in the UAE. The initial setup cost can range from AED 8,000 to AED 20,000, depending on the type of license and the business activity. This includes the license fee, registration fee, and visa costs. RAKEZ also offers affordable office spaces and flexi-desk options, which further reduce the overall cost.
Benefits
- Affordable Licensing: RAKEZ offers some of the most competitive licensing fees in the UAE.
- Flexible Office Solutions: Businesses can choose from a variety of office spaces, including flexi-desks, shared offices, and private offices.
- Wide Range of Activities: RAKEZ allows businesses to operate in various sectors, including trading, consulting, e-commerce, and manufacturing.
- Strategic Location: Located in Ras Al Khaimah, RAKEZ provides easy access to major UAE markets and international shipping routes.
Suitability
RAKEZ is ideal for SMEs, startups, and entrepreneurs looking for a cost-effective solution to establish their business in the UAE. It is also suitable for businesses that require flexibility in office space and licensing options.
2. Ajman Free Zone
Ajman Free Zone (AFZ) is another affordable option for businesses looking to set up in the UAE. Located in the emirate of Ajman, AFZ offers a range of business licenses and is known for its low setup costs and efficient services.
The cost of setting up a business in Ajman Free Zone is relatively low, with initial setup costs ranging from AED 5,000 to AED 15,000. This includes the license fee, registration fee, and visa costs. AFZ also offers affordable office spaces and warehouses, making it an attractive option for businesses that require storage facilities.
Benefits
- Low Setup Costs: AFZ offers some of the lowest setup costs among UAE free zones.
- Efficient Services: AFZ is known for its quick and efficient business setup process.
- Affordable Office Spaces: Businesses can choose from a variety of office spaces, including flexi-desks and private offices.
- Proximity to Dubai: Ajman is located close to Dubai, providing easy access to one of the region’s largest business hubs.
Suitability
Ajman Free Zone is ideal for small businesses, startups, and trading companies that require affordable office spaces and low setup costs. It is also suitable for businesses that need storage facilities due to its affordable warehouse options.
3. DAFZA Free Zone
The Dubai Airport Free Zone Authority (DAFZA) is one of the most prestigious free zones in the UAE. Located near Dubai International Airport, DAFZA offers a strategic location for businesses involved in logistics, trading, and aviation.
While DAFZA is known for its premium location and high-quality infrastructure, it also offers competitive pricing for businesses. The initial setup cost in DAFZA can range from AED 15,000 to AED 25,000, depending on the type of license and business activity. This includes the license fee, registration fee, and visa costs.
Benefits
- Strategic Location: DAFZA’s proximity to Dubai International Airport makes it an ideal choice for businesses involved in logistics and aviation.
- High-Quality Infrastructure: DAFZA offers state-of-the-art office spaces and facilities.
- Tax Exemptions: Businesses in DAFZA enjoy 100% tax exemptions on corporate and personal income.
- Efficient Services: DAFZA is known for its quick and efficient business setup process.
Suitability
DAFZA is ideal for businesses involved in logistics, trading, and aviation. It is also suitable for companies that require a prestigious address and high-quality infrastructure.
4. JAFZA Free Zone
Jebel Ali Free Zone (JAFZA) is one of the largest and most well-known free zones in the UAE. Located in Dubai, JAFZA offers a wide range of business activities and is a popular choice for multinational corporations and large enterprises.
The cost of setting up a business in JAFZA can vary depending on the type of license and business activity. The initial setup cost can range from AED 20,000 to AED 30,000, which includes the license fee, registration fee, and visa costs. JAFZA also offers a variety of office spaces and warehouses, with prices varying based on the size and location.
Benefits
- Wide Range of Activities: JAFZA allows businesses to operate in various sectors, including trading, manufacturing, and logistics.
- Strategic Location: JAFZA is located near Jebel Ali Port, one of the largest ports in the world, providing easy access to international shipping routes.
- Tax Exemptions: Businesses in JAFZA enjoy 100% tax exemptions on corporate and personal income.
- High-Quality Infrastructure: JAFZA offers state-of-the-art office spaces and facilities.
Suitability
JAFZA is ideal for large enterprises and multinational corporations that require a wide range of business activities and high-quality infrastructure. It is also suitable for businesses involved in trading and logistics due to its proximity to Jebel Ali Port.
5. DMCC Free Zone
The Dubai Multi Commodities Centre (DMCC) is one of the most prestigious free zones in the UAE. Located in Dubai, DMCC is known for its high-quality infrastructure and world-class facilities. It is a popular choice for businesses involved in commodities trading, finance, and technology.
The cost of setting up a business in DMCC can range from AED 20,000 to AED 30,000, depending on the type of license and business activity. This includes the license fee, registration fee, and visa costs. DMCC also offers a variety of office spaces, with prices varying based on the size and location.
Benefits
- High-Quality Infrastructure: DMCC offers state-of-the-art office spaces and facilities.
- Wide Range of Activities: DMCC allows businesses to operate in various sectors, including commodities trading, finance, and technology.
- Tax Exemptions: Businesses in DMCC enjoy 100% tax exemptions on corporate and personal income.
- Prestigious Address: DMCC is located in the heart of Dubai, providing businesses with a prestigious address.
Suitability
DMCC is ideal for businesses involved in commodities trading, finance, and technology. It is also suitable for companies that require a prestigious address and high-quality infrastructure.
6. SPC Free Zone
The Sharjah Publishing City Free Zone (SPC) is a specialized free zone dedicated to businesses in the publishing, printing, and media sectors. Located in Sharjah, SPC offers a range of business licenses and is known for its affordable setup costs.
The cost of setting up a business in SPC is relatively low, with initial setup costs ranging from AED 10,000 to AED 15,000. This includes the license fee, registration fee, and visa costs. SPC also offers affordable office spaces and flexi-desk options, making it an attractive option for small businesses and startups.
Benefits
- Affordable Licensing: SPC offers some of the most competitive licensing fees in the UAE.
- Specialized Free Zone: SPC is dedicated to businesses in the publishing, printing, and media sectors.
- Flexible Office Solutions: Businesses can choose from a variety of office spaces, including flexi-desks and private offices.
- Efficient Services: SPC is known for its quick and efficient business setup process.
Suitability
SPC is ideal for businesses in the publishing, printing, and media sectors. It is also suitable for small businesses and startups looking for affordable office spaces and low setup costs.
7. DWTC Free Zone
The Dubai World Trade Centre (DWTC) Free Zone is a prestigious free zone located in the heart of Dubai. It offers a range of business licenses and is known for its high-quality infrastructure and world-class facilities.
The cost of setting up a business in DWTC can range from AED 20,000 to AED 30,000, depending on the type of license and business activity. This includes the license fee, registration fee, and visa costs. DWTC also offers a variety of office spaces, with prices varying based on the size and location.
Benefits
- High-Quality Infrastructure: DWTC offers state-of-the-art office spaces and facilities.
- Prestigious Address: DWTC is located in the heart of Dubai, providing businesses with a prestigious address.
- Tax Exemptions: Businesses in DWTC enjoy 100% tax exemptions on corporate and personal income.
- Efficient Services: DWTC is known for its quick and efficient business setup process.
Suitability
DWTC is ideal for businesses that require a prestigious address and high-quality infrastructure. It is also suitable for companies involved in events, exhibitions, and conferences due to its proximity to the Dubai World Trade Centre.
These free zones provide affordable business setup options, making the UAE an attractive destination for entrepreneurs and SMEs.
List of Cheapest Free Zones in UAE based on the Trade license cost
Here’s a table summarizing the top 11 cheapest free zones in Dubai and the UAE, including their approximate setup costs. Note that costs may vary depending on the type of business activity, license, and office space requirements.
| Free Zone | Approximate Setup Cost (AED) | Key Features |
|---|---|---|
| Ajman Free Zone (AFZ) | 5,000 – 15,000 | Affordable licensing, flexible office options, and easy setup process. |
| Ras Al Khaimah Economic Zone (RAKEZ) | 7,500 – 12,000 | Low-cost licensing, multiple business activities, and no visa restrictions. |
| Dubai Multi Commodities Centre (DMCC) | 15,000 – 20,000 | Prestigious location, global trade hub, and flexible office solutions. |
| IFZA (International Free Zone Authority) | 12,000 – 15,000 | Fast setup, affordable licensing, and no hidden fees. |
| Dubai World Trade Centre (DWTC) | 15,000 – 20,000 | Central location, ideal for events, exhibitions, and trading businesses. |
| Sharjah Publishing City Free Zone (SPC) | 10,000 – 15,000 | Dedicated to publishing and media, low-cost licensing, and no office requirement. |
| Meydan Free Zone | 15,000 – 20,000 | Focus on sports, events, and trading businesses, flexible office options. |
| Dubai Silicon Oasis (DSO) | 15,000 – 20,000 | Tech-focused, affordable licensing, and access to a tech ecosystem. |
| Jebel Ali Free Zone (JAFZA) | 20,000 – 25,000 | Largest free zone, global trade hub, and extensive business facilities. |
| Sharjah Media City (Shams) | 10,000 – 15,000 | Affordable media-focused licenses, no office requirement, and quick setup. |
| Dubai Media City | 20,000 – 25,000 | Prestigious media hub, global networking opportunities, and flexible packages. |
Notes:
- Costs are approximate and may vary based on business activity, license type, and additional services (e.g., visas, office space).
- Some free zones offer virtual office packages or flexi-desk options to reduce costs.
- Always check for hidden fees or additional government charges during the setup process.
These free zones are popular for their affordability, ease of setup, and business-friendly policies, making them ideal for startups and SMEs in the UAE.
To start your business in Dubai’s affordable free zones, contact Bizinvestfirm today and let us turn your entrepreneurial dreams into reality.