Last updated: August 2026

UAE free zone comparison: IFZA, Ajman, RAKEZ, Dubai South, Meydan, JAFZA, and SHAMS

The UAE has over 40 free zones, each with different permitted activities, cost structures, and banking relationships. Choosing based on price alone is one of the most common mistakes founders make. This guide compares the 7 free zones Simobi works with across the factors that actually determine whether a jurisdiction works for your business.

IFZA

International Free Zone AuthorityDubai

Dubai address, broad activity list, competitive pricing. Popular with international founders entering UAE.

Best for

Consultants, trading companies, service businesses

Activities

Commercial, professional, industrial

Office requirement

Flexi-desk available

Ajman Free Zone

Ajman Free Zone AuthorityAjman

One of the most affordable UAE free zones. Good for businesses where a Dubai address is not a requirement.

Best for

Cost-sensitive new businesses, e-commerce, trading

Activities

Commercial, industrial, e-commerce

Office requirement

Flexi-desk available

RAKEZ

Ras Al Khaimah Economic ZoneRas Al Khaimah

One of the UAE's largest free zones. Broad activity coverage and flexible packages across multiple tiers.

Best for

Startups, freelancers, manufacturing, industrial

Activities

Commercial, industrial, freelance, manufacturing

Office requirement

Flexi-desk to dedicated unit

Dubai South

Dubai South Free ZoneDubai

Adjacent to Al Maktoum International Airport. Strategic for businesses with air freight, logistics, or export focus.

Best for

Logistics, aviation, e-commerce, trading near DWC airport

Activities

Commercial, logistics, aviation-related

Office requirement

Flexi-desk available

Meydan

Meydan Free ZoneDubai

Central Dubai location. Popular with consultants and service companies that want a Dubai address at a competitive cost.

Best for

Consultants, digital businesses, professional services

Activities

Commercial, professional

Office requirement

Flexi-desk available

JAFZA

Jebel Ali Free Zone AuthorityDubai

One of the world's largest free zones, adjacent to Jebel Ali Port. Best suited for established trading and logistics businesses, not typically the entry point for new small companies.

Best for

Large-scale trading, import/export, manufacturing

Activities

Commercial, industrial, logistics, warehousing

Office requirement

Warehouse or office unit typically required

SHAMS

Sharjah Media CitySharjah

Specialist free zone for media and creative businesses. Competitive pricing. Less suitable for general trading or professional services.

Best for

Media, content, publishing, creative businesses

Activities

Media, publishing, content creation, marketing

Office requirement

Flexi-desk available

Key facts

The UAE operates more than 40 designated free zones across all seven emirates, covering commercial, industrial, media, financial, and specialist sectors. (UAE Ministry of Economy)
All UAE free zones permit 100% foreign ownership. No local partner, sponsor, or agent is required to hold shares in a free zone company. (UAE Free Zone Authorities)
JAFZA is adjacent to Jebel Ali Port, the largest port in the Middle East and among the busiest in the world. It is a primary gateway for UAE import, export, and re-export activity. (DP World / JAFZA)
UAE Corporate Tax at 9% on income above AED 375,000 applies to free zone entities. Qualifying free zone persons may be eligible for a 0% rate on qualifying income, subject to Federal Tax Authority conditions. (Federal Tax Authority (FTA))

How to choose the right free zone

Check your activity codes first

Each free zone publishes a list of permitted activities. If your activity is not on the list, you cannot get that licence. Some free zones have broad lists; others are specialist. Confirm your activity is permitted before comparing costs.

Verify banking compatibility

Not all UAE banks work equally well with all free zones. Some free zones have established relationships with specific banks, which can accelerate corporate account opening. Ask about this before registering, not after.

Model the total cost over 2 years

Licence fee, visa costs, office requirement, and renewal fees add up differently across zones. A lower year-one fee sometimes comes with a higher renewal or a mandatory package upgrade. Compare year-one and year-two costs together.

Consider the address signal

For businesses where the company address matters to clients, a Dubai free zone address carries different weight than Ajman or Ras Al Khaimah. For companies that operate entirely online or internationally, the emirate of registration rarely affects business.

Frequently asked questions

Which UAE free zone is cheapest to set up in?

Ajman Free Zone is one of the most cost-effective options for new businesses. RAKEZ and SHAMS also offer competitive entry-level packages. The cheapest option depends on your activity and visa requirements. A jurisdiction with a lower licence fee but limited activity codes or banking relationships can cost more in practice.

What is IFZA and who is it suitable for?

IFZA (International Free Zone Authority) is a Dubai-based free zone suitable for a wide range of commercial and professional activities. It is popular with consultants, trading companies, and service businesses that want a Dubai address with competitive pricing. IFZA allows 100% foreign ownership and issues licences typically within 2 to 3 business days.

What is RAKEZ and who is it suitable for?

RAKEZ (Ras Al Khaimah Economic Zone) is one of the UAE's largest free zones, catering to both commercial and industrial businesses. It offers flexible packages for freelancers, startups, and manufacturing companies. RAKEZ is known for competitive pricing and a broad range of permitted activities.

Can I set up in a UAE free zone as a foreigner with no UAE partner?

Yes. All UAE free zones permit 100% foreign ownership. No local partner, sponsor, or agent is required to hold shares. You can own and operate the company entirely as a foreign national.

Does the choice of free zone affect my UAE bank account application?

Yes. Not all UAE banks work equally well with all free zones. Some free zones have established relationships with specific banks, which can accelerate the account opening review. Choosing a jurisdiction without checking its banking compatibility first is a common cause of delayed or rejected applications.

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Need help choosing the right free zone for your business?

Simobi works with IFZA, Ajman Free Zone, RAKEZ, Dubai South, Meydan, JAFZA, and SHAMS. We match your activity, banking plans, and cost requirements to the right jurisdiction before anything is filed.

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