Which is the Cheapest Free Zone in the UAE?

If you’re planning to start a business in the UAE, chances are you’ve already heard about Free Zones. These special business areas make life easier for entrepreneurs with benefits like 100% foreign ownership, no corporate or personal taxes, full profit repatriation, no import/export duties, and a quick, hassle-free licensing process. No wonder they’re a top choice for startups, freelancers, and international investors. But here’s the thing – not all Free Zones cost the same. Your setup cost can change depending on the Free Zone you choose, your business activity, the number of visas you need, and even the office space requirements. Some Free Zones are budget-friendly, while others charge more but offer extra facilities or prime locations.  Therefore, we’ll share which Free Zones are the most affordable in the UAE right now, compare their costs, and also talk about the other important factors you should think about, because choosing the “cheapest” option doesn’t always mean it’s the best for your business in the long run. 

What is a Free Zone in the UAE and Why Does it Exist? 

A Free Zone is a designated area in the UAE where businesses can operate with special rules and benefits that are different from the mainland. These zones were created to attract foreign investors by making it easier and more profitable to set up and run a business. Each Free Zone is managed by its own authority, which issues licenses and oversees regulations within its area. 

What are the Popular Free Zones in the UAE 

The UAE has over 40 Free Zones, each with its own focus and unique offerings. Some of the most well-known include: 

• International Free Zone Authority (IFZA): Located in Dubai, IFZA has become incredibly popular for its competitive pricing, fast setup process, and wide range of business activities. 
• Ajman Free Zone (AFZ): Known for being one of the most cost-effective options, Ajman Free Zone offers a simple setup process and is a great choice for startups and SMEs with limited budgets. 
• DMCC (Dubai Multi Commodities Centre): Consistently voted a top Free Zone globally, DMCC is a major hub for a wide range of industries, including commodities trading, financial services, and technology. 
• DIFC (Dubai International Financial Centre): This is the premier financial Free Zone in the region, operating under an independent common law framework and attracting major international banks and financial institutions. 
• SHAMS (Sharjah Media City): A rapidly growing and affordable option, SHAMS is perfect for media, creative, and tech-related businesses, offering flexible license packages. 
• RAKEZ (Ras Al Khaimah Economic Zone): A versatile and cost-effective Free Zone that supports a diverse range of sectors, from manufacturing and logistics to professional services. 
• JAFZA (Jebel Ali Free Zone Authority): As the oldest and one of the largest Free Zones, JAFZA is a powerhouse for logistics and trade, strategically located next to the Jebel Ali Port. 

What are the Cheapest Free Zones in the UAE? 

When it comes to affordable business setups, the UAE offers several Free Zones that combine competitive pricing with valuable benefits. These Free Zones attract startups, freelancers, and SMEs looking for cost-effective options without compromising on essential services and facilities.   Here are some of the cheapest Free Zones to consider in 2025: 

1. Sharjah Media City (SHAMS) 

Sharjah Media City, or SHAMS, is one of the fastest-growing Free Zones focusing on media, technology, and creative industries. It offers a vibrant and supportive environment for freelancers, startups, and SMEs. SHAMS stands out with its flexible packages and simplified setup process, making it ideal for entrepreneurs looking for an affordable and hassle-free entry into the UAE market. 

• Ideal For: Media, tech, freelancers, startups 
• Business Activities: Media production, IT services, consulting, freelancing 
• Starting License Cost: Around AED 5,750* 

2. International Free Zone Authority (IFZA) 

IFZA is a popular Free Zone located in Dubai Silicon Oasis, known for its flexibility and wide range of business activities. It offers some of the lowest fees in Dubai, with no mandatory office space requirements for many licenses. This makes IFZA a great option for service providers, consultants, and small trading companies who want to keep costs low without sacrificing the benefits of being in Dubai. 

• Ideal For: Consultants, service providers, trading companies 
• Business Activities: Consultancy, trading, e-commerce, IT services 
• Starting License Cost: Around AED 12,900* 

3. Ras Al Khaimah Economic Zone (RAKEZ) 

RAKEZ is one of the UAE’s most popular Free Zones for SMEs and industrial businesses. It offers a variety of packages, including flexi-desks, offices, and warehouses. RAKEZ’s competitive pricing and flexible options make it attractive for startups and growing businesses, especially those needing space for manufacturing or storage. 

• Ideal For: SMEs, manufacturing, trading, service businesses 
• Business Activities: Industrial, commercial, consultancy, trading 
• Starting License Cost: From AED 6,000* 

4. Ajman Free Zone 

Ajman Free Zone is known for its affordability and ease of setup. It supports a wide range of business activities and is particularly attractive for trading, consultancy, and e-commerce businesses. Its location in Ajman offers a quieter alternative to Dubai and Sharjah, with competitive fees that appeal to cost-conscious entrepreneurs. 

• Ideal For: Trading, consultancy, e-commerce 
• Business Activities: Trading, services, consulting, IT 
• Starting License Cost: Approximately AED 5,555* 

5. Meydan Free Zone 

Meydan Free Zone provides an affordable digital business setup in Dubai, focusing on virtual offices and flexible licensing solutions. It’s a good fit for digital entrepreneurs, freelancers, and service providers who want a Dubai business presence without heavy overhead costs. 

• Ideal For: Digital businesses, freelancers, consultants 
• Business Activities: IT, consulting, digital marketing, freelancing 
• Starting License Cost: Around AED 12,500* 

6. Fujairah Creative City 

Fujairah Creative City Free Zone specialises in media, education, and consultancy businesses. It’s a great choice for freelancers and small businesses looking for affordable packages combined with flexible visa options and easy access to the East Coast of the UAE. Its relaxed regulations make company formation quick and cost-effective. 

• Ideal For: Media professionals, educators, consultants, freelancers 
• Business Activities: Media production, training, consulting, freelancing 
• Starting License Cost: Starting around AED 7,500* 

7. Dubai South Free Zone 

Dubai South is a fast-developing Free Zone situated near Al Maktoum International Airport. It’s designed for logistics, aviation, and e-commerce businesses, providing modern infrastructure with competitive pricing. Dubai South is attractive for companies aiming to scale rapidly in a strategic location with access to global trade routes. 

• Ideal For: Logistics firms, aviation businesses, e-commerce startups 
• Business Activities: Freight, warehousing, aviation services, e-commerce 
• Starting License Cost: From AED 11,000* 

8. Dubai Internet City (DIC) 

Dubai Internet City is a leading Free Zone focused on technology companies and digital innovation. Though its starting costs are slightly higher than others on this list, it offers world-class infrastructure, a strong business community, and networking opportunities. Ideal for tech startups and IT firms looking for growth and collaboration. 

• Ideal For: IT companies, software developers, digital media agencies 
• Business Activities: Software development, IT consulting, digital marketing 
• Starting License Cost: From AED 15,000* 

Note: License costs and fees mentioned here are approximate and subject to change. It’s always best to get in touch with business setup experts at Shuraa India who can provide the latest information and help you choose the Free Zone that perfectly fits your budget and business needs. 

What are the Factors that Influence Free Zone Costs in the UAE? 

When choosing the right Free Zone for your business, it’s important to understand that the initial license fee is just one part of the total cost. Several factors affect how much you will ultimately pay, including: 

1. Type of Business License 

Different business activities require different types of licenses - commercial, professional, industrial, or e-commerce. Each license has its own fee structure, with industrial or specialised licenses often costing more than basic commercial or professional licenses. 

2. Office Space Requirements 

Most Free Zones require you to have a physical office or desk space to get a license. Options include flexi-desk (shared workspace), serviced offices, or full private offices. The size and type of office you choose greatly affect the overall cost. Some Free Zones offer packages with flexi-desk options at lower prices. 

3. Number of Visas 

The number of employee or investor visas included or required impacts the cost. Basic packages may include one or two visas, but adding more visas will increase fees. Visa costs also include processing, medical tests, and Emirates ID fees. 

4. Business Activity 

Certain business activities may require additional approvals, permits, or higher fees. For example, activities in education, healthcare, or finance may have stricter regulations and thus higher costs. 

5. Renewal Fees 

Business licenses and visas need to be renewed annually, and renewal fees may differ from initial setup fees. It’s important to factor in ongoing costs to avoid surprises later. 

6. Additional Services and Facilities 

Some Free Zones offer extra services like marketing support, networking events, customs facilitation, or warehousing facilities. Choosing packages with these extras will increase your setup costs but may add value depending on your business needs. 

Let Us Help You Choose the Right Free Zone 

The UAE has many affordable Free Zones that suit different budgets and types of businesses. Even if you’re just starting out or growing your company, there’s a Free Zone that can work for you without costing too much. But choosing the right one isn’t always easy because there are many things to think about besides just the price.  That’s why it’s a good idea to get help from experts who know all about Free Zones. At Shuraa India, we help you compare your options, handle all the paperwork, and guide you through licensing and visa processes. We also offer a free consultation to help find the best Free Zone for your business and budget. Contact us today and let’s make starting your business in the UAE simple and stress-free.