5 Cheapest Free Zone In UAE You Need to know

Cheapest Free Zone in UAE

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Among the world’s easiest places to do business, the UAE acquired the 11th position in the World Bank’s Ranking. UAE’s strategic location and tax-free environment attract many local and foreign investors. 

It provides a dynamic business environment that facilitates growth. Therefore, it is ideal for expanding your business and starting a new venture. This article will talk about the cheapest free zone in UAE.

What is a Free Zone?

Free Zones are selected areas that offer benefits to businesses. Each one is in a distinct region dedicated to a specific industry. They have their regulations for taxation, licensing, customs, and labor.

They aim to attract foreign investment, promote economic diversification, and facilitate international trade within the country by providing various advantages.

The benefits of starting a business in the UAE Free Zone include complete ownership, a diverse economy, state of the art infrastructure, and simple processes. Their goal is to create an attractive environment that drives economic growth and development in the country.

Why Set Up Business in the UAE Free Zone?

A business owner must understand the advantages of free zones when setting up their business. Obtaining the most cost-effective license in Dubai is appealing for expatriates because of the many benefits. Here are the top five reasons to set up a company in the cheapest free zones in Dubai:

1. Full ownership rights

Foreign investors can have 100% foreign ownership without a local partner or sponsor. This provides greater control and flexibility in managing your business.

2. Tax Incentives

Companies set up within the UAE Free Zones can benefit from tax relief. There is a 0% personal income tax. Moreover, there is a low corporate tax rate of 9% if their profits exceed the threshold of AED 375,000.

3. Simpler Business Setup

There is a clear regulatory framework, which leads to compliance with local rules and regulations. Moreover, it simplifies the company formation process. Paperwork is minimal, and the registration process is quick.

4. Custom advantages

There are streamlined customs procedures and exemptions from duties in free zones. Furthermore, import and export documentation processes are simple.

These provisions contribute to the smooth flow of international trade and enhance the efficiency of logistics operations.

5. Capital and profit benefits

UAE allows you to repatriate the entire profit or capital from your business activities to your home country or any other preferred destination.

6. Government support

Government agencies provide support in free zones to facilitate business growth and innovation. They have investor-friendly policies and initiatives that promote economic development.

Cheapest Free Zone In UAE

The business type, size, and location determine the cost of setting up a business in a UAE free zone. However, there are some notable cheapest free zone in UAE that offer affordable setup costs:

1. Ajman Free Zone

Ajman Free Zone (AFZ) is the best free zone in UAE. The proximity of the Sharjah and Dubai international airports is within a short driving distance.

It is famous for its cost-effective setup expenses and supportive business environment. Ajman Free Zone stands out for its efficient and straightforward company formation process, allowing businesses to establish themselves swiftly. Therefore, it is the cheapest free zone in UAE.

Ajman free zone facilitates the setup of industrial businesses engaged in waste management, transportation services, and IT infrastructure.  Ajman free zone offer the following licenses:

  • Trading license
  • E-commerce license
  • Professional services license
  • Industrial license
  • National industrial license

2. International Free Zone Authority (IFZA)

International Free Zone Authority IFZA is a global trade and business hub in Dubai Silicon Oasis. It was established in 2018 and is one of the most affordable free zones for company setup. Investors find it attractive for this reason. It is a popular choice amongst them.

IFZA Free Zone is an excellent place for startups and SMEs to launch their business. Setting up a business in IFZA free zone has plenty of benefits. These include 100% business ownership, low corporate tax, access to the global market, and no minimum capital requirement. The types of licenses offered in the IFZA free zone are:

  • Consultancy License
  • Service License
  • Trading License
  • General Trading License
  • Industrial License
  • Holding License

3. Ras Al Khaimah Economic Zone (RAKEZ)

Ras Al Khaimah Economic Zone RAKEZ is a government initiative. RAKEZ combines two prominent free zones: the RAK Free Trade Zone (RAKFTZ) and the RAK Investment Authority (RAKIA). It is under the leadership of his Highness Sheikh Saud bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah.

In the heart of Ras Al Khaimah, RAKEZ is the largest free zone in the UAE. Furthermore, it is recognized as the cheapest free zone in UAE. The types of licenses offered in RAKEZ are:

  • Commercial License
  • Educational License
  • E-Commerce License
  • General Trading License
  • Professional/Service License
  • Industrial License

4. Sharjah Media City free zone (SHAMS)

SHAMS, the UAE’s rapidly expanding media-free zone, is home to numerous prominent businesses and companies. Its location in Sharjah provides an energetic and thriving environment for aspiring entrepreneurs.

Consequently, SHAMS has become an attractive free zone for emerging investors and established businesses. Investors consider it as the cheapest free zone in UAE.

You can undertake multiple business activities with each business licensing. It has the cheapest free zone license in UAE. The available business license types in Sharjah Media City Free Zone SHAMS include:

  • Trading
  • Professional
  • Holding and other types
  • Social media influencer

5. Hamriyah Free Zone

It is the cheapest and best free zone in UAE. Foreign investors can have complete ownership and benefit from tax relief in Hamriyah Free Zone. They can enjoy the benefits of repatriating capital and profits and full exemption from commercial taxes.

  • Commercial license
  • Trading license
  • E-Commerce
  • Service
  • Industrial


What is a free zone in the UAE?

A free zone is a selected area within each emirate that offers 100% foreign ownership and tax relief. It provides many advantages to businesses and the setup process is simple. 

Which is the Cheapest Free Zone in the UAE?

International Free Zone Authority is one of the most affordable free zones in the UAE. It offers a vast choice of low-cost company setup packages and is the cheapest free trade zone in UAE.

How can I pick the ideal free zone for my company?

To find the ideal free zone for your company, you must first identify your business objectives. Then, you should find out about the legal requirements of the available free zones. You need to consider factors such as networking opportunities and future expansion. Moreover, you must consider the costs.


The cheapest free zone in UAE offers affordable setup costs and business-friendly environments for entrepreneurs. The cost of setting up a business in a free zone can vary depending on many factors.

However, some free zones in the UAE offer lower setup costs. It’s essential to research and compare the costs and benefits of different free zones before deciding. 

Nina Hassan
Nina Hassan

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