The UAE's free zones issued more than 68,000 new commercial licences in 2025, a rise of roughly 14% year on year, as reported by Gulf News citing the Ministry of Economy & Tourism (Gulf News, 2026). With more than 40 zones competing, the cheapest entry sits with SHAMS and RAKEZ from around AED 5,750 to 6,000, while DMCC charges from AED 35,484 for trading credibility. So which zone fits which goal? This guide compares IFZA, DMCC, Meydan, SHAMS and JAFZA on real published prices, visa eligibility and setup time, with every figure attributed to its source.
For the wider mainland, free zone and offshore decision, see our pillar guide to Dubai company formation across mainland, free zone and offshore.
Key takeaways
- Cheapest entry: SHAMS establishment from around AED 5,750 and RAKEZ Biz Starter from AED 6,000 (RAKEZ, 2026).
- Meydan starts from AED 12,500 on its Regular package, with a Fawri instant licence from AED 15,000 issued in under 60 minutes (Meydan FZ, 2026).
- DMCC is the premium trading hub, with Basic Business from AED 35,484 and a Jump Start package at AED 43,780 per year (DMCC, 2026).
- IFZA markets a low-cost Dubai address but publishes no official price; agency figures from around AED 12,900 are indicative only.
- Setup runs from 60 minutes (Meydan Fawri) to 14 business days (JAFZA), depending on zone and document readiness.
- Free zone companies pay 0% corporate tax up to AED 375,000 and 9% above it; a Qualifying Free Zone Person pays 0% on qualifying income (UAE Ministry of Finance, 2026).
Which UAE free zone is right for your business in 2026?
The right UAE free zone depends on your priority. For the lowest cost, SHAMS and RAKEZ start from around AED 5,750 to 6,000 (SHAMS, 2026). For a fast Dubai address, Meydan issues a Fawri licence in under 60 minutes. For commodities trading and credibility, DMCC leads from AED 35,484.
Here is the distinction that catches most first-time founders. The headline "from" prices are base licence figures, not first-year all-in costs. Once you add a visa, Emirates ID, medical and a desk, your real first-year spend runs materially higher. Treat every base price below as a starting point, then add the visa and office line items that match your headcount.
For a deeper, scenario-by-scenario costing of a Dubai company, see our breakdown of the cost to set up a company in Dubai in 2026.
Citation capsule: Across the major UAE free zones in 2026, base licence prices range from around AED 5,750 at SHAMS to AED 35,484 at DMCC Basic Business (SHAMS; DMCC, 2026). These are base licence figures only; first-year all-in costs that include a visa, Emirates ID, medical and a desk run materially higher.
How do the UAE free zones compare side by side?
The UAE free zones differ most on base price, visa allocation and setup speed, not on the corporate tax they pay. Base licences run from around AED 5,750 at SHAMS to AED 35,484 at DMCC Basic Business (DMCC, 2026). Setup spans 60 minutes at Meydan's Fawri tier to 14 business days at JAFZA.
The table below sets out the indicative base licence cost, the use case each zone suits, visa eligibility and setup time. Figures are base licence or package prices in AED. Where a zone publishes no price or only a calculator, the table says so plainly.
| Zone | Indicative base licence (AED) | Best for | Visa eligibility | Setup time |
|---|---|---|---|---|
| SHAMS (Sharjah) | From ~5,750; Trader Package 6,500 | Cheapest entry; media and creative; e-commerce | Visa-eligible; no-quota service or trade tier from ~11,000 | Same week |
| RAKEZ (Ras Al Khaimah) | Biz Starter from 6,000 | Cheap multi-activity; trading and light industrial | Visa-eligible; quota tied to facility | 24 hours (Biz Starter) |
| Hamriyah / HFZA (Sharjah) | HBC / E-Office ~11,000 (indicative) | Industrial and manufacturing; warehousing and plots | Visa-eligible; quota tied to facility size | ~1 hour after documents |
| IFZA (Dubai Silicon Oasis) | Authority publishes no price; agency zero-visa from ~12,900 (indicative) | Low-cost Dubai address; professional and commercial; remote | Zero-visa to multi-visa; scales with flexi-desk tier | ~3 to 5 days (agency) |
| Meydan FZ (Dubai) | From 12,500 (Regular); Fawri 15,000 | Fast Dubai setup; digital, trading and services | Up to 6 visas; allocation ~1,850 per visa | 3 to 5 days; Fawri 60 minutes |
| DMCC (Dubai, JLT) | Basic Business 35,484; Jump Start 43,780 / year | Trading in commodities, gold and crypto; credibility; Web3 | 1 visa (Basic) to 3 (Jump Start); JLT office required | ~5 days (Jump Start) |
| JAFZA (Dubai, Jebel Ali) | Calculator only; FZE / FZCO registration AED 5,000 each | Logistics, large-scale trading, industrial, port access | Visa-eligible; quota tied to facility | 3 to 14 business days |
| ADGM (Abu Dhabi) | SPV USD 1,900; operating co. non-financial USD 5,500 initial | Holding and SPV; regulated and financial services; funds | SPVs usually no visas; operating companies visa-eligible | Digital; SPV quick |
A quick word on two entries. IFZA's official pages publish no AED price, so the figure shown is agency-sourced and indicative, not authority-confirmed. JAFZA prices through an official calculator rather than a flat package, so the table shows its verified registration line items instead.
Citation capsule: The major UAE free zones in 2026 span base licences from around AED 5,750 at SHAMS to AED 35,484 at DMCC Basic Business, with setup times from 60 minutes at Meydan's Fawri tier to 14 business days at JAFZA (SHAMS; DMCC; Meydan FZ; JAFZA, 2026). IFZA publishes no official price, so its figure is agency-sourced and indicative.
Which UAE free zone is cheapest in 2026?
SHAMS is the cheapest entry, with establishment from around AED 5,750 and a Trader Package at AED 6,500, followed closely by RAKEZ Biz Starter from AED 6,000 (RAKEZ, 2026). Both are base licence prices, not first-year all-in totals. Add a visa and a desk and the gap to a Dubai zone narrows.
Sharjah and Ras Al Khaimah undercut Dubai because their overheads are lower. RAKEZ Biz Starter bundles a trade licence, up to 10 activities, co-working access and up to 50 shareholders, with setup in 24 hours (RAKEZ, 2026). SHAMS suits media, creative and e-commerce founders, with a no-visa-quota service or trade tier from around AED 11,000. Both give you a real UAE licence at a fraction of a Dubai address.
In our experience advising founders, the cheapest licence is rarely the cheapest outcome. If you need three visas and a physical office, a Sharjah saving on the licence can be eaten by facility and quota costs. Price the full first year, not the headline. For deeper detail on the northern-emirate options, see our guide to Hamriyah and SHAMS free zone setup in 2026.
Citation capsule: SHAMS in Sharjah offers the cheapest UAE free zone entry in 2026, with establishment from around AED 5,750 and a Trader Package at AED 6,500, just below RAKEZ Biz Starter from AED 6,000 (SHAMS; RAKEZ, 2026). Both figures are base licence prices and exclude visa, Emirates ID and office costs.
How fast can you set up a UAE free zone company?
Setup speed varies widely, from 60 minutes to 14 business days. Meydan's Fawri tier issues an instant licence in under 60 minutes, while JAFZA's company formation runs 3 to 14 business days depending on structure (JAFZA, 2026). HFZA can issue a licence around one hour after documents are complete.
Speed depends on document readiness more than on the zone. A Fawri or HBC licence issues fast only when your passport copies, activity selection and shareholder details are ready. RAKEZ's Biz Starter advertises 24-hour setup, and Meydan's Regular package runs 3 to 5 days. JAFZA sits at the slower end because its structures, including the FZE, FZCO, branch and offshore options, carry more checks.
Want a one-day Dubai launch instead of an instant licence in another emirate? Meydan is worth a closer look. We cover its packages, visa allocation and renewal mechanics in our dedicated guide to Meydan free zone setup in 2026.
Citation capsule: UAE free zone setup times in 2026 range from under 60 minutes for a Meydan Fawri instant licence to 3 to 14 business days at JAFZA (Meydan FZ; JAFZA, 2026). Hamriyah can issue a licence about one hour after documents are complete, while RAKEZ Biz Starter advertises 24-hour setup.
Do free zone companies still pay UAE corporate tax?
Yes, free zone companies fall within UAE corporate tax, but the rate depends on income type. The headline regime applies 0% up to AED 375,000 of taxable profit and 9% above it, for financial years starting on or after 1 June 2023 under Federal Decree-Law No. 47 of 2022 (UAE Ministry of Finance, 2026). Free zones do not sit outside this system.
Here is the point most comparisons get wrong. The 0% band up to AED 375,000 applies to every taxable person, mainland or free zone. Separately, a Qualifying Free Zone Person can pay 0% on its Qualifying Income regardless of amount, while non-qualifying income is taxed at 9% (UAE Federal Tax Authority, 2026). These are two different mechanisms. Do not read the AED 375,000 band as the source of a free zone's 0% rate.
So a free zone licence does not switch off corporate tax. Whether you reach the 0% QFZP outcome depends on meeting the qualifying conditions in the Ministry of Finance and Federal Tax Authority free zone guidance. Get that wrong and your "tax-free" zone company simply pays 9% like anyone else above the threshold. Treat QFZP status as a test to satisfy, not a default.
Citation capsule: UAE free zone companies remain within corporate tax: 0% applies up to AED 375,000 of taxable profit and 9% above it under Federal Decree-Law No. 47 of 2022 (UAE Ministry of Finance, 2026). Separately, a Qualifying Free Zone Person pays 0% on qualifying income of any amount, with non-qualifying income taxed at 9% (UAE Federal Tax Authority, 2026).
Which UAE free zone suits each type of business?
Each zone has a clear sweet spot. DMCC dominates commodities, gold and crypto trading with more than 26,000 members and 2,300 joining in 2025, its strongest year in five (DMCC, 2026). ADGM suits holding structures and regulated finance, while JAFZA owns logistics through Jebel Ali Port. Match the zone to your activity, not the brochure.
Trading and credibility: DMCC
DMCC is the choice for traders who need standing. Its Basic Business package starts at AED 35,484, while the Jump Start package costs AED 43,780 per year, a 24% saving on the unbundled AED 57,481, including a three-year renewable visa and a JLT flexi-desk (DMCC, 2026). DMCC requires a physical JLT office, so there is no purely virtual route. It suits commodities, gold, crypto and Web3 firms that value the name.
Holding, SPVs and regulated finance: ADGM
ADGM, the Abu Dhabi common-law financial centre, suits holding companies, SPVs and regulated finance. An ADGM SPV totals USD 1,900, made up of a USD 200 name fee, USD 700 registration and a USD 1,000 licence (ADGM, 2026). From 1 January 2025, ADGM cut its non-financial operating-company licence to USD 5,500 initial and USD 5,000 renewal, while raising financial-licence fees.
Logistics and industrial: JAFZA and Hamriyah
For physical goods, JAFZA and Hamriyah lead. JAFZA ties directly to Jebel Ali Port and offers the FZE, FZCO, branch, offshore and PLC structures, with registration line items such as AED 5,000 for an FZE or FZCO (JAFZA, 2026). Hamriyah suits manufacturing and warehousing, with HBC or E-Office licensing from an indicative AED 11,000 and plots for heavier operations.
A note on the wider 2026 picture. Recent Commercial Companies Law amendments let free zone companies relocate their registry between emirates and zones without liquidation, and establish mainland branches subject to licensing (Gulf News, 2026). We cover what that means for the mainland route in the pillar guide linked above.
Citation capsule: Among UAE free zones in 2026, DMCC leads commodities and crypto trading with more than 26,000 members and 2,300 new joiners in 2025, while ADGM suits holding companies and regulated finance, pricing an SPV at USD 1,900 (DMCC; ADGM, 2026). JAFZA and Hamriyah serve logistics and industrial operators tied to Jebel Ali Port and Sharjah manufacturing.
If you want a shortlist matched to your sector, budget and visa headcount rather than a brochure, our advisers can help. You can start your UAE company formation with Ancova and get a costed comparison across these zones before you commit.
Frequently asked questions
Which UAE free zone is cheapest?
SHAMS in Sharjah is the cheapest UAE free zone entry, with establishment from around AED 5,750 and a Trader Package at AED 6,500 (SHAMS, 2026). RAKEZ Biz Starter follows from AED 6,000. Both are base licence prices, so add visa, Emirates ID and office costs for a true first-year figure.
What is the difference between a free zone and the mainland?
A free zone company is licensed by a free zone authority and historically traded mainly within the zone and internationally, while a mainland company is licensed by the emirate's economic department to trade across the UAE. Recent 2026 reforms now let free zone firms establish mainland branches subject to licensing (Gulf News, 2026).
Do free zone companies still pay corporate tax in the UAE?
Yes. Free zone companies sit within UAE corporate tax, which charges 0% up to AED 375,000 and 9% above it under Federal Decree-Law No. 47 of 2022 (UAE Ministry of Finance, 2026). A Qualifying Free Zone Person pays 0% on qualifying income separately, with non-qualifying income taxed at 9%.
Can a free zone company trade on the UAE mainland?
It can, with conditions. Following 2026 Commercial Companies Law amendments, free zone companies may establish mainland branches subject to the relevant licensing, rather than relying only on a mainland distributor (Gulf News, 2026). Direct mainland trading still depends on holding the correct mainland licence.
How long does it take to set up a UAE free zone company?
Setup ranges from under 60 minutes to 14 business days. Meydan's Fawri tier issues an instant licence in under an hour, while JAFZA company formation runs 3 to 14 business days depending on structure (JAFZA, 2026). Document readiness, not the zone, is usually the real bottleneck.
Sources
- UAE Ministry of Finance, "Corporate Tax," retrieved 13 June 2026, https://mof.gov.ae/corporate-tax/
- UAE Federal Tax Authority, "Corporate Tax," retrieved 13 June 2026, https://tax.gov.ae/
- DMCC, "Business setup packages," retrieved 13 June 2026, https://dmcc.ae/business/business-setup-packages
- DMCC, "Jump Start business registration," retrieved 13 June 2026, https://landing.dmcc.ae/business-registration-jump-start
- DMCC, "DMCC reports strong 2025 growth," retrieved 13 June 2026, https://dmcc.ae/latest-news/dmcc-reports-strong-2025-growth
- Meydan Free Zone, "Cost Calculator," retrieved 13 June 2026, https://www.meydanfz.ae/cost-calculator
- RAKEZ, "Biz Starter Package," retrieved 13 June 2026, https://rakez.com/en/promotions/biz-starter-package
- Sharjah Media City (SHAMS), "Trader Package," retrieved 13 June 2026, https://www.shams.ae/media-center/blog/shams-launches-trader-package-for-e-commerce
- Hamriyah Free Zone Authority (HFZA), "Setup a Business," retrieved 13 June 2026, https://hfza.ae/setup-a-business-2/
- Jafza, "Company formation," retrieved 13 June 2026, https://www.jafza.ae/business-setup/company-formation/
- ADGM, "Special Purpose Vehicles," retrieved 13 June 2026, https://www.adgm.com/setting-up/special-purpose-vehicles
- ADGM, "ADGM reduces commercial licence fees from January 2025," retrieved 13 June 2026, https://www.adgm.com/media/announcements/adgm-reduces-commercial-licence-fees-from-january-2025
- Gulf News, "How UAE free zone businesses can operate in the mainland: new laws explained," retrieved 13 June 2026, https://gulfnews.com/business/economy/how-uae-free-zone-businesses-can-operate-in-the-mainland-new-laws-explained-1.500401960
Written by
Amine Derag
Director of Strategy, Ancova Associates
Amine Derag is Director of Strategy at Ancova Associates, the Dubai advisory firm for company formation, residency, citizenship by investment, and cross-border tax structuring. He advises founders and private clients relocating to the UAE on how a UAE structure interacts with their home-country tax and reporting obligations.
Connect on LinkedInThis article is general information for educational purposes only and is not legal, tax, financial, or immigration advice. Investment thresholds, processing times, and program terms change — speak with a qualified Ancova adviser before acting.
