Free Zone Business Setup in the UAE in 2025
From tech to tourism, the UAE is a popular destination for entrepreneurs of all types. It's home to a bustling economy, tax incentives, modern infrastructure, and a business-forward way of thinking that makes operating in the region not just lucrative, but the way of the future.
Many businesses in the UAE operate from within the jurisdiction of the 30+ Free Zones in Dubai. These Free Zones feature their own benefits, including:
- 100% Ownership - Foreign investors can fully own their business without needing a local sponsor.
- Tax Benefits: - Free zones offer 100% exemption on corporate and personal income taxes.
- Easy Setup : - The UAE offers streamlined business registration and licensing processes.
- World-Class Infrastructure: - Access to modern office spaces, warehouses, and logistics facilities.
- Flexible Business Activities - Many Free Zones allow multiple business activities under one license.
- Access to Talent - Free Zones provide visa packages, making it easier to hire employees and find the right skilled workforce.
Which Free Zone is the most cost effective in 2025? Let’s dive deeper and find out the best avenue to start your business and save money in the process.
Which is the Cheapest Free Zone in the UAE?
The cost of business set up in Free Zones will vary depending on the type of business activity, the number of visas required, and the facilities and infrastructure your business will need. However, in most cases Sharjah Media City (SHAMS) is known as the most affordable, with startup costs as low as AED 5,750.
List of Most Affordable Free Zones and Their License Costs in the UAE
Finding the right Free Zone will be your first step in maximizing your business’s potential. With many different options across the UAE, there are Free Zone options to fit every field and every budget. To help, we’ve broken down some of the least expensive Free Zone business setup options:
| Free Zone | Business Setup Cost |
|---|---|
| Sharjah Media City | AED 5,750 |
| International Free Zone Authority (IFZA) | AED 11,900 |
| Ras Al Khaimah Economic Zone (RAKEZ) | AED 6,000 |
| Ajman Free Zone (AFZ) | AED 5,555 |
| Fujairah Creative City Free Zone | AED 5,520 |
| Twofour54 Free Zone | AED 15,000 |
| Khalifa Industrial Zone Abu Dhabi (KIZAD) | AED 16,000 |
| Abu Dhabi Global Market (ADGM) | AED 18,000 |
| ---------- | ---------- |
- Sharjah Media City (SHAMS): - License costs start at AED 5750, making it one of the most economical options for entrepreneurs in content creation, media production, and other creative industries.
- International Free Zone Authority (IFZA): - This Free Zone offers options for consultancy firms, trading companies, and other service-oriented fields. Packages in this Free Zone start at AED 11,900.
- Ras Al Khaimah Economic Zone (RAKEZ): License costs begin at AED 6,000, with diverse business activity options and affordable warehouse spaces.
- Ajman Free Zone (AFZ): AFZ is a great option for E-commerce, online trading, retail, and more. Costs start from AED 5,550, depending on the industry.
- Fujairah Creative City Free Zone: License packages start from AED 5,520 and are typically oriented for media, consultancy, and freelance businesses.
- Twofour54 Free Zone: This Free Zone specializes in media, entertainment, and creative businesses. License fees for this Free Zone start at AED 15,000.
- Khalifa Industrial Zone Abu Dhabi (KIZAD): Business licenses in this jurisdiction start at AED 16,000. Due to its proximity to Khalifa Port and extensive infrastructure, KIZAD is ideal for industrial, manufacturing, and logistics companies.
- Abu Dhabi Global Market (ADGM): Licensing costs for ADGM Free Zone begin at AED 18,000. This Free Zone is a financial hub that’s perfect for banking, investment firms, and other financial services.
Cheapest Free Zones in Dubai
| Free Zone | Business Setup Cost |
|---|---|
| 1. RAKEZ | AED 10,000 |
| 2. IFZA | AED 11,900 |
| 3. Meydan Free Zone | AED 11,900 |
| 4. Dubai South Free Zone | AED 12,500 |
| 5. Dubai Silicon Oasis (DSO) | AED 15,000 |
| ---------- | ---------- |
Cheapest Free Zones in Abu Dhabi
Aside from Dubai, there are several affordable Free Zones in the UAE’s capital for businesses that seek competitive licensing costs. Much like Dubai’s Free Zones, each jurisdiction feature their own licensing procedures, regulations, and governing bodies. The most affordable options include:
| Free Zone | Business Setup Cost |
|---|---|
| 1. Twofour54 Free Zone | AED 15,000 |
| 2. KIZAD Free Zone | AED 16,000 |
| 3. ADGM Free Zone | AED 18,00 |
| ---------- | ---------- |
MSZ Consultancy Can Help Start Your Business in the UAE
Whether you’re starting a media company in Dubai, or tackling Abu Dhabi's market, MSZ Consultancy can give your business the edge. Our consultants have years of experience with business setup in the UAE and can guide you through the licensing process, help you handle visa applications, assist with establishing legal structures, and much more.
We can streamline your processes so you can be free to focus on what matters the most– your business. Call our consultants at +971 562 182 1007 and let us get to work for you. We'll provide you with a FREE consultation and help you unlock your business's true potential.
