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Last updated: August 2026

Cheapest free zone in UAE: honest 2026 comparison

The licence fee is never the full cost. This guide ranks the 6 most affordable UAE free zones by total year-one outlay — and tells you what each one is actually hiding.

Cheap is not always cheaper. A free zone with a poor banking track record can delay your account opening by months — costing you far more than the price difference between zones. The rankings below reflect total year-one cost; they also flag banking risks so you can make the right tradeoff.

01

Meydan Free Zone

Dubai

Year-one total

AED 12,500 – 17,000

What is included

  • Licence fee
  • Trade name reservation
  • 1 investor visa (in entry package)

What is extra

  • +Establishment card (AED 1,500–2,500)
  • +Medical test + Emirates ID (AED 700–1,000)
  • +Typing / service fees

Banking

Accepted by most UAE banks with a well-prepared application

Best for

Solo founders, digital businesses, consultants wanting a Dubai address at entry-level cost

Key caveat

Activity list limitations mean it is not suitable for all business types. Check your specific activities before committing.

02

UAQ FTZ

Umm Al Quwain

Year-one total

AED 12,500 – 16,500

What is included

  • Licence fee
  • Name reservation
  • Flexi-desk (in some packages)

What is extra

  • +Establishment card
  • +Investor visa (add AED 4,000–5,000)
  • +Emirates ID + medical

Banking

Mixed — some major UAE banks require additional documentation or decline applications

Best for

Cost-sensitive traders or founders who can verify banking compatibility first

Key caveat

Banking track record is the main risk. Confirm your intended bank accepts UAQ FTZ before committing.

03

Ajman Free Zone

Ajman

Year-one total

AED 13,000 – 18,500

What is included

  • Licence
  • Name reservation
  • Office / flexi-desk (most packages)

What is extra

  • +Establishment card
  • +Visa fees
  • +Emirates ID + medical

Banking

Acceptable at most major banks; some reports of additional scrutiny

Best for

Traders and SMEs with physical goods, especially those near Ajman or northern emirates

Key caveat

Slightly higher renewal costs than UAQ FTZ. Physical presence requirement for some activities.

04

IFZA

Dubai

Year-one total

AED 14,500 – 22,000

What is included

  • Licence
  • Name reservation
  • 1–3 visas depending on package
  • Flexi-desk

What is extra

  • +Establishment card (AED 1,500–2,000)
  • +Emirates ID + medical per applicant

Banking

Excellent — consistently strong track record with all major UAE banks

Best for

Founders who want low cost AND reliable banking, especially international founders

Key caveat

Slightly higher than UAQ or Meydan headline price, but total cost often comparable due to what is included.

05

SHAMS

Sharjah

Year-one total

AED 14,000 – 20,000

What is included

  • Licence
  • Name reservation
  • Visa quota (varies by package)

What is extra

  • +Establishment card
  • +Emirates ID + medical
  • +Typing fees

Banking

Good for its target sector; most major banks process applications

Best for

Content creators, media professionals, marketing agencies, social media businesses

Key caveat

Not ideal for trading or industrial activities — activity list is deliberately sector-specific.

06

RAKEZ

Ras Al Khaimah

Year-one total

AED 13,000 – 20,000

What is included

  • Licence
  • Name reservation
  • Office/flexi-desk
  • 1–3 visas (package dependent)

What is extra

  • +Establishment card
  • +Emirates ID + medical per visa applicant

Banking

Good — strong banking relationships across most major UAE banks

Best for

SMEs, manufacturers, and consultants wanting low cost with strong banking credentials

Key caveat

Location in Ras Al Khaimah suits businesses without a specific Dubai address requirement.

Frequently asked questions

What is the cheapest free zone in the UAE?

The cheapest realistic year-one setups with one investor visa are: Meydan Free Zone (from AED 12,500), Ajman Free Zone (from AED 13,000), UAQ FTZ (from AED 12,500), IFZA (from AED 14,500), and SHAMS (from AED 14,000). Note that the cheapest package is not always the cheapest in practice — activity limitations, banking restrictions, and mandatory add-ons can make a low advertised price more expensive than it appears.

Is a cheap UAE free zone less credible with banks?

Some low-cost free zones — particularly UAQ FTZ and Ajman Free Zone — have had inconsistent banking track records with certain major UAE banks. IFZA and RAKEZ offer competitive pricing while maintaining strong bank relationships. If bank account opening matters to you (it should), verify banking compatibility before choosing the lowest-cost option.

What is not included in cheap UAE free zone packages?

Establishment card (AED 1,500–3,000), investor visa entry permit, medical fitness test (AED 350–700), Emirates ID (AED 370), typing fees, and often the visa itself — these are typically additional. When you see a free zone advertise from AED 5,500, that is usually just the licence fee. Add AED 8,000–12,000 for a complete setup with one visa.

Find the most cost-effective setup for your business

Simobi matches your activity and budget to the right zone — including banking compatibility — so you do not pay more than you need to. The conversation is free.

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