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Choosing the right UAE free zone is one of the most consequential decisions you'll make when setting up here — and one of the easiest to get wrong. The wrong choice locks you into annual fees you don't need, visa limits you'll outgrow, or activity restrictions you only discover after the licence is issued. Having helped set up thousands of companies across every major UAE free zone, here is an honest, current comparison of the three most popular — DMCC, IFZA, and RAKEZ. One caveat throughout: every fee below is approximate and package-dependent, so treat the figures as a guide and confirm the current cost with the free zone before you commit.
DMCC — the premium Dubai address
DMCC, the Dubai Multi Commodities Centre in Jumeirah Lakes Towers, is the UAE's largest free zone by company count, and was named Global Free Zone of the Year by the Financial Times' fDi Magazine for nine consecutive years, from 2015 to 2023. It is the natural home for commodities trading — gold, diamonds, tea, coffee — and has become a major centre for crypto, Web3, and professional services.
DMCC is the premium-priced option of the three. A realistic all-in setup starts at around AED 35,000 for an entry package with one visa, rising to AED 50,000–65,000 or more once you add visas, activities, and a serviced desk. A standard flexi-desk supports up to three visas; more require physical office space. You get a prestigious address, more than a thousand permitted activities, and a free zone UAE banks generally regard well. If credibility and a Dubai presence matter to your business, DMCC earns its premium.
IFZA — the value leader in Dubai
IFZA, the International Free Zone Authority, sits in Dubai Silicon Oasis (under the Dubai Silicon Oasis Authority, part of the DIEZ group — not, as is sometimes stated, the Dubai Development Authority). It has built its reputation on price and speed, and is the value leader among Dubai free zones for service and trading businesses.
Pricing is package-based and sold mainly through registered agents. A zero-visa licence starts from around AED 12,500 a year, and a one-visa package from around AED 14,900; a realistic first-year all-in with one visa, establishment card, medical, and Emirates ID lands closer to AED 21,000–22,000. IFZA typically includes around three activities on a licence, lets you mix professional and commercial activities, and supports fully remote incorporation in a few working days. The trade-off against DMCC is brand prestige and the absence of large-scale industrial or warehousing space.
RAKEZ — industry, logistics, and the lowest entry cost
RAKEZ, the Ras Al Khaimah Economic Zone, is the cost leader of the three and the only one built for heavy industry. Its real advantage is physical: customisable warehouses, industrial land for development, and on-site staff and labour accommodation — a manufacturer can license, lease a factory, and house its workforce within one zone, at costs Dubai cannot match.
For service and consulting businesses, RAKEZ also competes hard on price, with commercial and professional licences from around AED 6,000 for a zero-visa option and roughly AED 14,000–16,500 all-in with one visa. Industrial pricing is quote-based, driven by the land or warehouse lease rather than the licence. The main consideration is location: Ras Al Khaimah is about an hour's drive — roughly 100 kilometres — north of Dubai, which matters if your team needs to be in Dubai regularly, though it sits right next to Saqr Port and RAK airport.
DMCC vs IFZA vs RAKEZ at a glance
Stripped to essentials: DMCC is the premium, credibility-first choice for trading, commodities, and crypto, from around AED 35,000. IFZA is the fast, affordable Dubai option for consultants and service companies, from around AED 12,500. RAKEZ is the cost leader and the only real choice for manufacturing, warehousing, and logistics, from around AED 6,000.
But comparing on licence price alone is misleading, because the cheapest licence usually assumes zero or one visa. A business that needs five or six visas, or physical space, will find the gap between these zones narrows — and sometimes reverses. The right comparison is total cost for the configuration you actually need, not the headline figure on the brochure.
The factors that matter more than licence cost
Annual licence cost is the starting point, not the decision. Four factors usually matter more. Visa quota: every zone caps visas by the space you lease and the licence type, so a cheap licence with a one-visa cap is a false economy if you are hiring. Permitted activities: confirm the zone actually allows your specific activity — general trading is usually a separate, pricier licence everywhere. Banking access: this is the real bottleneck, not the licence. And mainland access: whether, and how, you can serve clients on the UAE mainland.
Get these four right for your business model and the licence fee becomes a footnote. Get them wrong and you will be paying to restructure within a year.
A free zone licence does not mean 0% corporate tax
This is the most expensive misunderstanding in UAE business setup. Being in a free zone does not, on its own, give you 0% corporate tax. The 0% rate applies only to a "Qualifying Free Zone Person" earning "qualifying income" under the corporate tax law; income that does not qualify is taxed at 9%.
Qualifying status requires real substance in the zone, qualifying activities (defined in Ministerial Decision No. 229 of 2025), arm's-length transfer pricing, audited accounts, and staying within a de minimis limit — non-qualifying revenue under the lower of 5% of revenue or AED 5 million. And a 0% rate is still a corporate tax position: the company must register and file a return. Choosing a free zone without thinking about how its activities map to qualifying income is planning the structure and ignoring the tax.
Selling to the UAE mainland — what changed in 2025
A free zone company cannot trade directly in the UAE mainland from inside the zone — historically it needed a mainland distributor, a separate mainland branch, or a dual-licence arrangement. In 2025 this became significantly easier in Dubai: Executive Council Resolution No. 11 of 2025 allows most Dubai free zone companies to operate onshore through a Department of Economy and Tourism permit, including running a branch from their existing free zone premises.
Two things to keep in mind. The financial free zones — DIFC and ADGM — are excluded from this route. And income earned from mainland activity is taxed at 9%, not 0%, and must be kept in separate accounts. The mainland is more open than it was, but the tax line between free zone and mainland income still matters.
Banking — the real bottleneck
The licence is the easy part; the bank account is where setups slow down. UAE banks apply strict anti-money-laundering and know-your-customer checks, screen every beneficial owner, and increasingly expect genuine substance — a real address, activity that matches the licence, and a clear source of funds. A credible free zone, a low-risk activity, and real substance improve your odds, but no free zone can guarantee an account.
High-risk activities — crypto, forex, general trading with no track record — face longer timelines and more rejections. Plan for two to four weeks for account opening in a straightforward case, and build the banking question into your free zone choice rather than treating it as an afterthought.
So which free zone is right for you?
There is no universally best free zone — only the best fit for your activity, team size, budget, banking needs, and where your clients are. As a rough guide: DMCC if you trade commodities or need a prestige Dubai address and banking credibility; IFZA if you are a consultant or service business that wants a fast, affordable Dubai licence; RAKEZ if you need warehousing, manufacturing, or the lowest possible cost and can work from Ras Al Khaimah.
The right recommendation comes from your actual business — what you do, how many visas you need, and your three-year plan — not a comparison table. If you are weighing a setup, book a free consultation and I'll give you a specific recommendation for your situation, including the corporate tax and banking implications most comparisons leave out.
Frequently asked questions
What is DMCC best for, and how much does it cost?
DMCC suits commodities trading, crypto and Web3, and businesses that want a prestige Dubai address and strong banking credibility; it was named fDi Magazine's Global Free Zone of the Year for nine consecutive years to 2023. A realistic all-in setup starts at around AED 35,000 with one visa, rising with extra visas and office space. All figures are approximate — confirm current pricing with DMCC.
Is IFZA the cheapest Dubai free zone?
IFZA is the value leader among Dubai free zones for service and trading businesses. A zero-visa licence starts from around AED 12,500 and a one-visa package from around AED 14,900, with a realistic first-year all-in nearer AED 21,000 to 22,000. RAKEZ undercuts it on rock-bottom licences. All figures are approximate and package-dependent.
Which UAE free zone is best for manufacturing and logistics?
RAKEZ in Ras Al Khaimah is the strongest choice for industry, with customisable warehouses, industrial land, and on-site labour accommodation at costs Dubai cannot match. Licences start from around AED 6,000, with industrial pricing quote-based. The main trade-off is location — Ras Al Khaimah is about an hour's drive, roughly 100 km, north of Dubai.
Does a free zone company automatically pay 0% corporate tax?
No. Being in a free zone does not by itself give 0% corporate tax. The 0% rate applies only to a Qualifying Free Zone Person earning qualifying income; other income is taxed at 9%. The company must keep substance, follow transfer pricing rules, stay within the de minimis limit, and still register and file a return.
Can a free zone company sell to the UAE mainland?
Yes, but not directly from inside the zone without authorisation. In Dubai, Executive Council Resolution No. 11 of 2025 lets most free zone companies operate onshore through a Department of Economy and Tourism permit, including a branch run from their free zone premises. DIFC and ADGM are excluded, and mainland income is taxed at 9%, not 0%.
How long does free zone company setup take?
A licence is typically issued within a few working days of complete documents — sometimes within 24 hours in RAKEZ. Full setup with visas usually takes one to two weeks. The real variable is the corporate bank account, which can add several weeks because of bank due-diligence checks.
Which Dubai free zone should I choose?
As a rough guide: DMCC for commodities, crypto, and prestige; IFZA for fast, affordable service and trading companies; RAKEZ for manufacturing, warehousing, or the lowest cost. The right answer depends on your activity, visa needs, banking, and where your clients are — and on how the free zone's activities map to the 0% corporate tax rules.
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