5 Cheapest Free Zone In UAE You Need to know

Cheapest Free Zone in UAE

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Talking about the Cheapest Free zone, UAE currently ranked 16th in the Ease of Doing Business Index, has attracted numerous major global and multinational companies. This trend extends to small and medium businesses as well as independent entrepreneurs.

UAE’s strategic geographical location and tax-free environment attract a significant number of investors, both local and foreign whether your objective is to expand an existing business or initiate a new venture, the UAE presents a dynamic business environment that promotes rapid growth. In this article, we are going to talk about all the cheapest free zone in UAE.

What is a Free Zone?

In the UAE, free zones are designated areas that provide incentives and benefits to businesses. Created by the government every free trade zone in the UAE is characterized by a distinct geographic region within a specific emirate, these zones have their own regulations governing licensing, taxation, customs, and labor. They aim to attract foreign investment, promote economic diversification, and facilitate international trade within the country.

The objective of free zones is to attract foreign investment by providing a range of advantages, including full business ownership, promoting economic diversification, facilitating international trade with simplified procedures, and enhancing competitiveness through incentives and infrastructure. Their overall goal is to create an attractive environment that drives economic growth and development in the country.

Why set up Business in the Free Zone?

When considering the cheapest free zone in the UAE for business setup, it is crucial for entrepreneurs to understand the advantages they offer. The availability of numerous benefits makes the acquisition of the most cost-effective free zone license in the UAE for 2023 highly appealing to expatriates. Here are the top five benefits of establishing a business in a Free zone:

1. Full ownership rights

In most UAE free zones, foreign investors can have full ownership of their business without the need for a local partner or sponsor. This provides greater control and flexibility in managing your business.

2. Tax Incentives

Tax incentives provided by UAE free zones present appealing advantages, including low corporate income tax rate, import/export duties, and value-added tax (VAT). These incentives can substantially alleviate the tax obligations placed on your business, leading to overall tax savings.

3. Simpler Business Setup

Streamlined establishment procedures make obtaining a free zone license in Dubai a hassle-free endeavor. While the precise process may vary depending on the chosen business activities, in most instances, basic documentation and paperwork are sufficient to initiate the setup of your business.

4. Custom advantages

Free zones in the UAE offer streamlined customs procedures, exemptions from duties, and simplified documentation processes for both imports and exports. These provisions contribute to the smooth flow of international trade and enhance the efficiency of logistics operations.

5. Capital and profit benefits

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

6. Government support benefits

The UAE government is dedicated to fostering business growth within its free zones, offering support through specialized free zone authorities, investor-friendly policies, and initiatives aimed at promoting economic development and entrepreneurship.

Cheapest Free Zone In UAE

While the cost of establishing a business in a free zone in the UAE can vary depending on factors such as business type, size, and location, here are some notable cheapest free zone in UAE known for their comparatively affordable setup costs:

1. Ajman Free Zone

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

It is widely recognized 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.

This free zone appeals to companies worldwide by providing user-friendly and economical services. Additionally, AFZ accommodates a diverse range of media and entertainment-related activities, making it an attractive option for enterprises operating in those sectors.

Furthermore, the free zone facilitates the setup of industrial businesses engaged in waste management, transportation services, and IT infrastructure. Primarily, the business activities in these sectors can be categorized as follows:

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

2. International Free Zone Authority (IFZA)

IFZA (International Free Zone Authority) is poised to rapidly emerge as a prominent investment hub within the thriving UAE economy and is also considered one of the cheapest free zone in UAE.

Positioned for convenient accessibility to Arabian Gulf Ports and the flourishing markets of Iran, India, and Pakistan, this free zone is strategically located. Moreover, it benefits from its proximity to an international airport.

These advantages, such as its strategic location facilitating access to major shipping routes, ports, and airports, along with streamlined procedures, make IFZA an optimal destination for establishing a business in Dubai.

IFZA offers its investors the added advantages of the lowest pricing and minimal requirements and procedures for initiating a business. Consequently, it stands as the ideal location for entrepreneurs seeking to establish their companies. 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 that combines two prominent free zones, RAK Free Trade Zone (RAKFTZ) and RAK Investment Authority (RAKIA), under the visionary leadership of His Highness Sheikh Saud bin Saqr Al Qasimi, the Ruler of Ras Al Khaimah.

Located in the heart of Ras Al Khaimah, RAKEZ aims to consolidate the strengths of both free zones and their 13,000 clients, establishing itself as the largest free zone in the UAE.

RAKEZ provides a favorable platform for local and foreign investors to diversify their investments and expand their presence in local, regional, and international markets. By establishing a company in the free zone, businesses gain a strategic location and access to rapidly growing markets in the Middle East, South Africa, Europe, and South and Central Asia.

The consolidation of the RAK Free Trade Zone and RAK Investment Authority into RAKEZ in 2017 represents a significant step towards enhancing economic development and attracting further investment to the emirate of Ras Al Khaimah. 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. It is located in Sharjah and provides an energetic and thriving environment for aspiring entrepreneurs. Consequently, SHAMS has become an attractive free zone for both emerging investors and established businesses.

Unlike what its name may imply, Sharjah Media City free zone offers a diverse range of business activities that extend beyond the media sector. Each license allows for multiple business activities to be undertaken. The available business license types in SHAMS include:

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

5. Hamriyah Free Zone

It is one of the oldest and cheapest free zone in UAE. In Hamriyah-free zone Sharjah, international individuals have the opportunity to achieve full ownership of their businesses and establish them within a tax-free environment. They can enjoy the benefits of repatriating capital and profits and complete exemption from commercial taxes.

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


The cheapest free zone in the UAE offer affordable setup costs and business-friendly environments for entrepreneurs. While the cost of setting up a business in a free zone can vary depending on various factors, some free zones in the UAE are recognized for their relatively lower setup costs. It’s important to research and compare the costs and benefits of different free zones before making a decision.

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