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 is business-savvy 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 |
| ---------- | ---------- |
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Sharjah Media City (SHAMS): - If you're an entrepreneur in the content creation, media production, or creative industries, Sharjah Media City (SHAMS) is a fantastic, cost-effective choice. With licensing starting at just AED 5,750, it’s one of the most affordable options for those looking to get their media or creative business off the ground in the UAE. Read more about Sharjah Free Zone.
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International Free Zone Authority (IFZA): - Looking to start a consultancy, trading company, or any service-oriented business? The International Free Zone Authority (IFZA) offers flexible business packages starting at AED 11,900. It’s a great choice for entrepreneurs seeking a professional base with streamlined setup processes.
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Ras Al Khaimah Economic Zone (RAKEZ): For those interested in a broad range of business activities, RAKEZ in Ras Al Khaimah is a solid option. Licenses start from AED 6,000, and it’s known for offering affordable warehouse spaces- perfect for businesses that need flexibility and scalability in terms of operations.
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Ajman Free Zone (AFZ): If you’re in the E-commerce, online trading, or retail sector, Ajman Free Zone (AFZ) is worth considering. License packages here begin at AED 5,550, making it one of the most affordable options for businesses focused on digital or retail activities. Plus, the location offers convenient access to major shipping routes.
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Fujairah Creative City Free Zone: For those focused on media, consultancy, or freelance work, Fujairah Creative City offers licenses starting at AED 5,520. It’s a good fit for entrepreneurs in the creative space, providing a conducive environment for growth and innovation without the heavy overhead. Learn more about Fujairah Free Zone.
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Twofour54 Free Zone: For a true creative business- media, film, or digital content- look at Twofour54. Starting at AED 15,000, it’s the professional home for broadcasters and studios. You’re not renting a desk; you’re joining an industry hub with the right connections and facilities made for creative work to thrive.
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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.
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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.
Mohammed Sultan Zubair
CEO - MSZ Corporate Services
Mohammed Sultan Zubair is a seasoned business consultant specializing in company formation and regulatory compliance in the UAE and Saudi Arabia. With over 15 years of experience, he has guided entrepreneurs, SMEs, and multinational firms through the complexities of regional business laws and market entry strategies. His deep understanding of local licensing, taxation, and free zone structures ensures clients make informed, strategic decisions. Mohammed Sultan Zubair regularly contributes insights on corporate setup, investment trends, and regional economic developments.
Frequently Asked Questions (FAQs)
A Free Zone is truly cost-effective when it gives you low startup fees without cutting corners on the essentials. The best ones keep setup simple, offer affordable visa options, and give you the freedom to add multiple activities under a single license. SHAMS is a good example- it has one of the lowest entry prices in the UAE, yet still provides the support and structure new businesses need to get moving without unnecessary expenses.
The cheapest Free Zone isn't always your best choice. That attractive starting price is a hook, not the whole story. Your real decision should be based on your business's specific needs. What exactly will you be doing? How many visas will your team need? Do you require a physical office or a warehouse? Some zones specialize in media and creative work, while others are built for heavy industrial trade. If you choose based on price alone, you may find yourself trapped by limitations or hit with unexpected fees later. Your goal shouldn't be to find the cheapest zone, but the one that's the right strategic fit for your long-term growth
SHAMS holds its title because it delivers genuine value starting from just AED 5,750. It's built for speed and simplicity, making it the go-to for freelancers, digital creators, and bootstrapped startups. The zone provides a broad selection of business activities, ensures quick approvals, and offers clear, all-inclusive packages. For new entrepreneurs entering the UAE market, it represents the most straightforward and cost-effective entry point available.
Yes, you absolutely can. A significant number of business owners complete their Free Zone company formation entirely remotely. You'll only need to be physically present for certain steps, like providing fingerprints for your Emirates ID or finalizing your corporate bank account opening. A reliable consultancy can handle virtually everything else on your behalf, making the process seamless from any location worldwide.
Trustworthy Free Zones are clear about their standard licensing fees. However, your final investment is shaped by the extras you select. Critical costs that add up include:
- Government fees for each employee visa
- Rental costs for an office or warehouse, if needed
- Fees for attesting and translating legal documents
- Charges for setting up your corporate bank account
- The annual cost to renew your license
This is exactly where a good consultant proves invaluable- they will map out every single potential cost for you upfront, ensuring complete transparency with no surprises.
A Free Zone license allows you to operate freely within your specific zone and to conduct business internationally. However, if you wish to sell goods or services directly to customers within the UAE mainland market, regulations typically require you to work through an approved local distributor or agent. Many astute entrepreneurs begin in a Free Zone for its affordability and ease, then establish a separate mainland company later once their business has grown and can support the expansion.
Each Free Zone is built around certain industries. SHAMS is designed for creatives and media companies, RAKEZ works well for manufacturers and industrial businesses, while ADGM is tailored for finance and investment firms. The best approach is to match your business activity with a Free Zone that supports it and offers the facilities you’ll rely on long term. A consultant can help you compare options and choose the one that fits your goals and budget.