Setting up a business in the UAE is an exciting opportunity for entrepreneurs looking to tap into a dynamic, tax-friendly market. Among the many options, free zones stand out for their unique benefits, including 100% foreign ownership, tax exemptions, and simplified setup processes. This guide compares three of the UAE’s most popular free zones—IFZA, Meydan, and RAKEZ—to help you decide which is best for your business setup in Free Zone.
Understanding UAE Free Zones
Free zones in the UAE are designated areas designed to attract foreign investment by offering business-friendly regulations. They provide full ownership, no corporate or personal income taxes, and streamlined processes for company formation. Choosing the right free zone depends on your business type, budget, and long-term goals.
Why Free Zones Matter for Business Setup
Free zones are tailored to support specific industries, from tech and e-commerce to logistics and manufacturing. They offer infrastructure, strategic locations, and incentives that make them ideal for startups and established businesses alike. Understanding the differences between IFZA, Meydan, and RAKEZ is key to aligning your business with the right environment.
Benefits of Free Zones in the UAE
- 100% Foreign Ownership: No need for a local sponsor, giving you full control.
- Tax Exemptions: Zero corporate and personal income tax, plus no import/export duties.
- Simplified Setup: Fast registration and minimal paperwork.
- Profit Repatriation: Transfer all profits and capital back to your home country.
- Strategic Locations: Proximity to ports, airports, or business hubs enhances operations.
IFZA Free Zone: Affordable and Flexible
The International Free Zone Authority (IFZA), located in Dubai Silicon Oasis, is a top choice for startups and small businesses. Known for its cost-effective packages and flexibility, IFZA caters to a wide range of industries, including consulting, e-commerce, and professional services.
Key Features of IFZA
IFZA stands out for its affordability and streamlined setup process. It’s ideal for entrepreneurs who want a prestigious Dubai address without high costs. The free zone supports a variety of business activities under a single license.
- Competitive Pricing: License packages start at AED 12,900 for no-visa options.
- Quick Setup: Company registration can be completed in 2–3 working days.
- Flexible Licensing: Combine up to three activities under one license at no extra cost.
- Visa Options: Up to six visas per license, with costs starting at AED 3,500 per visa.
- Dual Licensing: Option to operate in both free zone and mainland markets.
Who Should Choose IFZA?
IFZA is perfect for freelancers, consultants, and digital entrepreneurs seeking a low-cost entry into Dubai. Its virtual office options and minimal compliance requirements make it attractive for remote businesses. Small to medium-sized enterprises (SMEs) looking for flexibility will also find IFZA appealing.
IFZA Costs and Packages
The cost of setting up in IFZA varies based on your needs, such as visa quotas and office space. Below is a breakdown of typical costs for 2025:
| Package Type | Cost (AED) | Notes |
|---|---|---|
| No Visa License | 12,900 | Ideal for solo entrepreneurs |
| 1 Visa License | 14,900 | Includes one residence visa |
| 3 Visa License | 18,900 | Suitable for small teams |
| General Trading | 17,500+ | For businesses with diverse activities |
Additional costs include:
- Establishment Card: AED 2,000 (first year), AED 2,200 (renewal).
- Visa Processing: AED 2,500–5,000 per visa, including medical exams and Emirates ID.
- Office Space: Virtual office at AED 10,000/year; flexi desk at AED 5,760–10,000/year.
Pros and Cons of IFZA
Pros:
- Affordable setup and renewal fees.
- Fast and efficient registration process.
- Wide range of business activities supported.
- Strategic Dubai location enhances credibility.
Cons:
- Limited physical office options compared to other zones.
- Not ideal for industrial or logistics businesses.
Meydan Free Zone: Prestige and Convenience
Located near the iconic Meydan Hotel and Racecourse, Meydan Free Zone offers a premium business address in the heart of Dubai. It’s designed for entrepreneurs who value brand credibility and a digital-first setup process. Meydan is particularly suited for freelancers, digital agencies, and service-based businesses.
Key Features of Meydan
Meydan combines modern infrastructure with a prestigious location, making it a favorite for businesses seeking visibility. Its fully digital setup process ensures speed and transparency. The free zone is ideal for those who don’t need physical office space.
- Prime Location: Situated near Downtown Dubai, boosting brand image.
- Digital Registration: Complete setup online in 4–7 days.
- Flexible Packages: Licenses start at AED 12,500 with no visa.
- Virtual Office Options: Ideal for remote businesses or freelancers.
- No Audit Requirements: Simplifies compliance for small businesses.
Who Should Choose Meydan?
Meydan is a great fit for digital startups, e-commerce businesses, and professionals who prioritize a central Dubai address. Its virtual and shared office solutions cater to those who don’t require a physical workspace. Entrepreneurs looking for networking opportunities will benefit from Meydan’s vibrant business community.
Meydan Costs and Packages
Meydan’s costs are competitive, especially for service-based businesses. Here’s a cost overview for 2025:
| Package Type | Cost (AED) | Notes |
|---|---|---|
| No Visa License | 12,500 | Best for remote businesses |
| 1 Visa License | 14,250 | Includes one residence visa |
| 3 Visa License | 18,000 | Suitable for small teams |
| Virtual Office | 10,000+ | Optional for remote operations |
Additional costs include:
- Visa Processing: AED 3,500–5,000 per visa, covering medicals and Emirates ID.
- Establishment Card: AED 2,000 (first year), AED 2,200 (renewal).
- Shared Office: AED 5,000–15,000/year, depending on facilities.
Pros and Cons of Meydan
Pros:
- Prestigious Dubai address enhances brand reputation.
- Fully digital setup process for convenience.
- No mandatory audits or bookkeeping.
- Strong networking opportunities within a vibrant community.
Cons:
- Limited to service-based and digital businesses.
- Higher costs compared to IFZA for similar packages.
RAKEZ Free Zone: Cost-Effective and Scalable
Ras Al Khaimah Economic Zone (RAKEZ), located in the northern emirate of Ras Al Khaimah, is known for its affordability and scalability. It caters to a wide range of businesses, from freelancers to large-scale manufacturers. RAKEZ is particularly appealing for industrial and logistics operations.
Key Features of RAKEZ
RAKEZ offers one of the most diverse and cost-effective free zone packages in the UAE. Its infrastructure supports businesses requiring physical facilities, such as warehouses and industrial land. The free zone’s connectivity to ports and airports makes it a hub for trade and logistics.
- Low-Cost Setup: Licenses start at AED 11,500 for no-visa packages.
- Diverse Facilities: Offers warehouses, labor accommodations, and industrial land.
- Scalable Solutions: Supports SMEs and large manufacturing setups.
- Extensive Activities: Over 50 business activities permitted under one license.
- Strategic Connectivity: Close to major ports and highways for logistics.
Who Should Choose RAKEZ?
RAKEZ is ideal for businesses requiring physical infrastructure, such as manufacturing, logistics, or export-import operations. It’s also a great choice for cost-conscious startups and SMEs looking to minimize setup costs. Entrepreneurs who don’t need a Dubai address will find RAKEZ’s value unmatched.
RAKEZ Costs and Packages
RAKEZ offers some of the lowest setup costs in the UAE, especially for industrial businesses. Here’s a cost breakdown for 2025:
| Package Type | Cost (AED) | Notes |
|---|---|---|
| No Visa License | 11,500 | Budget-friendly for solo founders |
| 1 Visa License | 13,500 | Includes one residence visa |
| General Trading | 16,000+ | For diverse trading activities |
| Warehouse Lease | Varies | Based on size and location |
Additional costs include:
- Visa Processing: AED 3,500–5,000 per visa, including medicals and Emirates ID.
- Establishment Card: AED 2,000 (first year), AED 2,200 (renewal).
- Warehouse/Office: Pricing depends on size; starts at AED 10,000/year for small spaces.
Pros and Cons of RAKEZ
Pros:
- Lowest setup costs among the three free zones.
- Extensive infrastructure for industrial and logistics businesses.
- Flexible packages for businesses of all sizes.
- Excellent connectivity to ports and airports.
Cons:
- Located in Ras Al Khaimah, not Dubai, which may impact brand perception.
- Longer setup time (7–10 days) compared to IFZA or Meydan.
Comparing IFZA, Meydan, and RAKEZ: A Detailed Analysis
To choose the right free zone, you need to evaluate factors like cost, location, business activities, and growth potential. Below is a detailed comparison to guide your decision.
Cost Comparison
| Free Zone | No Visa License (AED) | 1 Visa License (AED) | General Trading (AED) | Renewal Costs |
|---|---|---|---|---|
| IFZA | 12,900 | 14,900 | 17,500+ | Standard |
| Meydan | 12,500 | 14,250 | Not Offered | Moderate |
| RAKEZ | 11,500 | 13,500 | 16,000+ | Low |
RAKEZ offers the lowest starting costs, while IFZA and Meydan are slightly higher but provide a Dubai address. Renewal fees are generally consistent with initial costs, though RAKEZ tends to be the most affordable long-term.
Business Activities Supported
- IFZA: Offers a wide range of activities, including consulting, trading, e-commerce, and services. Up to three activities can be combined under one license.
- Meydan: Focused on service-based activities, such as digital marketing, consulting, and e-commerce. Not suitable for industrial or trading businesses.
- RAKEZ: Supports over 50 activities, including manufacturing, logistics, trading, and services, making it the most versatile.
Setup Time
- IFZA: 2–3 working days, the fastest among the three.
- Meydan: 4–7 working days, fully digital for convenience.
- RAKEZ: 7–10 working days, slightly slower due to its broader scope.
Location and Prestige
- IFZA: Located in Dubai Silicon Oasis, offering a tech-focused, credible Dubai address.
- Meydan: Situated near Downtown Dubai, providing a premium, high-visibility location.
- RAKEZ: Based in Ras Al Khaimah, less prestigious but highly functional for industrial businesses.
Office and Infrastructure Options
- IFZA: Virtual offices, flexi desks, and limited physical offices. Best for digital or service-based businesses.
- Meydan: Virtual and shared office solutions, ideal for remote or small teams.
- RAKEZ: Extensive physical infrastructure, including warehouses, industrial land, and labor accommodations.
Visa Eligibility
All three free zones offer visa packages ranging from 0 to 6+ visas. Costs per visa are similar (AED 3,500–5,000), but RAKEZ allows more flexibility for larger teams or industrial setups.
Bank Account Success
Opening a bank account is crucial for business operations. IFZA and Meydan have a slight edge due to their Dubai addresses, which UAE banks often view favorably. RAKEZ is still viable but may require more effort for account approval.
| Free Zone | Bank Account Success |
|---|---|
| IFZA | High |
| Meydan | High |
| RAKEZ | Moderate |
How to Choose the Right Freezone for Your Business
Selecting the ideal free zone requires aligning your business model with the zone’s strengths. Here are key factors to consider:
1. Business Type and Activities
- Digital or Service-Based: IFZA or Meydan are ideal for tech startups, freelancers, and e-commerce due to their flexible licensing and virtual office options.
- Manufacturing or Logistics: RAKEZ is the best choice for businesses needing warehouses, industrial land, or proximity to ports.
- Trading: RAKEZ and IFZA offer general trading licenses, while Meydan is less suited for this.
2. Budget Constraints
- Low Budget: RAKEZ offers the cheapest packages, starting at AED 11,500, making it ideal for cost-conscious entrepreneurs.
- Moderate Budget: IFZA provides a balance of affordability and a Dubai address, starting at AED 12,900.
- Premium Budget: Meydan’s prestigious location justifies its slightly higher costs for businesses prioritizing brand image.
3. Location Preference
- Dubai Address: IFZA and Meydan provide a prestigious Dubai address, enhancing credibility with clients and banks.
- Cost Over Prestige: RAKEZ’s Ras Al Khaimah location offers lower costs and robust infrastructure for physical operations.
4. Growth and Scalability
- Startups: IFZA’s quick setup and flexible licensing support rapid growth.
- Digital Businesses: Meydan’s digital-first approach and networking opportunities cater to scaling online ventures.
- Industrial Ventures: RAKEZ’s scalable infrastructure is perfect for businesses planning large-scale operations.
5. Infrastructure Needs
- Virtual or Shared Offices: IFZA and Meydan excel for businesses that don’t need physical space.
- Physical Facilities: RAKEZ is unmatched for warehouses, industrial land, and labor accommodations.
Dubai Company Formation Costs: A Closer Look
Understanding the full cost of setting up a company in a UAE free zone is critical for budgeting. Costs include licenses, visas, office space, and additional fees like medical exams and Emirates ID. Below is a detailed breakdown for IFZA, Meydan, and RAKEZ.
License Costs
- IFZA: Starts at AED 12,900 for a no-visa license, with packages up to AED 20,900 for 4+ visas.
- Meydan: Starts at AED 12,500, with visa packages ranging from AED 14,250 to AED 18,000.
- RAKEZ: Starts at AED 11,500, with general trading licenses at AED 16,000+.
Visa and Related Costs
Each visa requires additional fees:
- Entry Permit and Emirates ID: AED 2,500–5,000 per person.
- Medical Exam: AED 450–870 per person.
- Health Insurance: Starts at AED 992 per person.
- Investor Visa: AED 4,750 for business owners.
Office Space Costs
- Virtual Office: AED 10,000/year (IFZA, Meydan).
- Flexi Desk: AED 5,760–15,000/year (IFZA, Meydan, RAKEZ).
- Private Office: AED 7,500–40,000/year (IFZA, RAKEZ).
- Warehouse: Varies, primarily available in RAKEZ.
Additional Fees
- Establishment Card: AED 2,000 (first year), AED 2,200 (renewal) across all zones.
- Consultant Fees: AED 2,000–8,000 for setup assistance.
- Regulatory Approvals: Extra costs for sectors like healthcare or finance.
Multi-Year Packages
All three free zones offer discounted multi-year packages:
- IFZA: 3-year package with 1 visa saves 20% (AED 35,800 vs. AED 44,700).
- Meydan: Multi-year options available, though less emphasized.
- RAKEZ: Customizable long-term packages for cost savings.
Recommended Free Zones by Business Type
To simplify your decision, here’s a guide to which free zone suits specific business models:
- Tech Startups and Digital Businesses: IFZA or Meydan for fast setup and virtual office options.
- E-commerce and Online Stores: Meydan for its prestigious address and digital-first process.
- Trading and Import/Export: RAKEZ for cost-effective licenses and port access.
- Consultants and Freelancers: IFZA or RAKEZ for low-cost, flexible packages.
- Manufacturing and Industrial: RAKEZ for warehouses and industrial infrastructure.
Banking and Market Reputation
A Dubai address (IFZA or Meydan) often leads to faster bank account approvals due to the emirate’s global reputation. RAKEZ businesses may face slightly more scrutiny but can still secure accounts with proper documentation. Always prepare a solid business plan and financial records to streamline the process.
Final Thoughts on Choosing the Right Freezone
Choosing the right freezone—IFZA, Meydan, or RAKEZ—depends on your business’s unique needs. IFZA offers affordability and flexibility for startups and digital businesses. Meydan provides a prestigious Dubai address for service-based ventures, while RAKEZ excels for industrial and logistics operations with its low costs and robust infrastructure.
Making an Informed Decision
Ask yourself these questions:
- What is my budget for setup and ongoing costs?
- Do I need a Dubai address for branding and banking?
- What type of infrastructure does my business require?
- How quickly do I need to start operations?
- What are my long-term growth plans?
By answering these, you can narrow down the best free zone for your goals. Each zone offers unique advantages, so aligning them with your business model is crucial.
Why Work with BizInvestFirm?
Navigating the complexities of free zone setup can be daunting, especially for first-time entrepreneurs. This is where BizInvestFirm comes in. As a trusted business setup consultancy, BizInvestFirm specializes in guiding entrepreneurs through the entire process of establishing a company in IFZA, Meydan, or RAKEZ.
- Expert Guidance: Receive tailored advice to choose the right free zone for your business.
- End-to-End Support: From license application to visa processing and bank account setup.
- Cost Transparency: Get detailed breakdowns to avoid hidden fees.
- Time Efficiency: Leverage their expertise to speed up registration and compliance.
- Ongoing Assistance: Support for renewals, expansions, and regulatory compliance.
With BizInvestFirm, you can focus on growing your business while they handle the paperwork and logistics. Contact BizInvestFirm today at info@bizinvestfirm.com for a free consultation and start your UAE business journey with confidence.