Dreaming of launching your own business in the UAE but worried about the cost? You’re not alone. The good news is that the UAE offers a wide range of incredibly affordable free zones, making the dream of 100% foreign ownership and a tax-free business a reality for startups and SMEs.
This definitive guide from Shuraa Business Setup reveals the 12 cheapest free zones in the UAE for 2025, with transparent pricing and expert insights to help you make the smartest choice for your budget.
Key Takeaways:
- The Lowest Starting Price: Sharjah Media City (SHAMS) and Ajman Free Zone (AFZ) offer some of the most competitive entry points, with licenses starting from AED 5,750* and AED 5,000* respectively.
- Best Value in Dubai: IFZA and Dubai South provide the most cost-effective pathways to establishing a company in Dubai, with packages from AED 14,900* and AED 12,000*.
- Cost Factors Matter: The cheapest license often has zero visas. Always factor in visa costs for your true total investment.
- Activity is King: The cheapest zone for a media freelancer isn’t the same as for a trading company. We’ll match you to the right one.
- Expert Guidance Saves Money: Shuraa ensures you get the best official price with no hidden fees.
Free Zone vs. Mainland: Which is Truly Cheaper for You?
This is a fundamental question. Here’s a simplified cost-benefit analysis:
| Factor | Free Zone | Mainland |
|---|---|---|
| Starting Cost | Often Lower (e.g., AED 5,750*) | Often Higher (More office space requirements, higher license fees) |
| 100% Ownership | Yes, Always | Yes, Now for Most Activities |
| Office Requirement | Flexible (Virtual, Flexi-Desk) | Mandatory Physical Space (Typically more expensive) |
| Market Access | Primarily Free Zone & Overseas | Unrestricted UAE Mainland Market |
| Customs Duties | Exempt within free zone | Subject to customs duties |
Verdict: If your business primarily deals with international clients or operates online, a free zone is almost always cheaper and simpler. If your core market is physically within the UAE mainland, the higher cost of a mainland license may be a necessary investment for greater market access.
At-a-Glance: The 12 Most Affordable Free Zones in the UAE
For entrepreneurs who prioritize budget, here is a quick comparison of the top affordable free zones.
| Free Zone | Starting License Cost (Approx.) | Ideal For |
|---|---|---|
| Ajman Free Zone (AFZ) | AED 5,000* | Trading, E-commerce, Startups |
| Sharjah Media City (SHAMS) | AED 5,750* | Media, Freelancers, Consulting |
| Ras Al Khaimah Economic Zone (RAKEZ) | AED 6,000* | Diverse activities, Manufacturing, SMEs |
| International Free Zone Authority (IFZA) – Dubai | AED 14,900* | Trading, Services, Dubai-based startups |
| Dubai Silicon Oasis (DSO) – Dubai | AED 11,900* | IT, Tech, Digital Startups |
| Dubai South Free Zone – Dubai | AED 12,000* | Logistics, Aviation, E-commerce |
| Meydan Free Zone – Dubai | AED 12,500* | E-commerce, Services, Quick Setup |
| Jebel Ali Free Zone (JAFZA) – Dubai | AED 15,000* | Trading, Logistics, Industrial |
| Dubai Media City (DMC) | AED 15,000* | Media, Production, Broadcasting |
| Sharjah Research, Technology & Innovation Park (SRTIP) | AED 5,500* | Tech, R&D, Innovation |
| Dubai Healthcare City (DHC) | AED 14,900* | Medical, Wellness, Pharma |
| Dubai International Financial Centre (DIFC) | AED 10,000* | Financial Services, FinTech, Consulting |
How to Choose the Right Free Zone in the UAE
- Match your business activity: Some free zones are industry-specific while others are general purpose.
- Evaluate your office needs: Free zones offer different options, from shared flexi-desks to dedicated office spaces. Choose one that fits your current and future facility requirements.
- Consider visa requirements: Each free zone has its own visa quotas based on your office space. Plan for this based on your hiring needs.
- Analyze costs: Look at the setup and annual costs, which include license fees, rent, and visa expenses. These can vary significantly between zones.
- Assess location and infrastructure: Consider if your business needs to be near an airport, seaport, or specific region for logistics and client proximity.
- Plan for future expansion: Choose a free zone with a flexible licensing structure and a good reputation, which can support your long-term growth plans.
Detailed Breakdown of All 12 Affordable Free Zones in the UAE
1. Sharjah Media City (SHAMS)
Starting Price: AED 5,750*
- Why it’s a Top Budget Pick: Sharjah Media City (SHAMS) is widely recognised as the cheapest free zone in the UAE, offering business setup packages from just AED 5,750. With its digital-first system and no physical presence requirement, it remains one of the most accessible free zones.
- Best For: Freelancers, media professionals, consultants, IT firms, and online businesses.
- Shuraa Insight: The ultimate blend of low cost and high flexibility for service-based businesses and solo entrepreneurs.
2. Ajman Free Zone (AFZ)
Starting Price: AED 5,000*
- Why it’s a Top Budget Pick: Ajman Free Zone (AFZ) is among the cheapest free zones in the UAE, with setups from AED 5,000*. It offers quick digital registration, flexible workspaces, and is a prime choice for trading businesses.
- Best For: Import-export, e-commerce, SMEs, and startups needing a low-cost physical base.
- Shuraa Insight: Exceptional value for trading businesses that need a physical presence without the Dubai price tag.
3. Ras Al Khaimah Economic Zone (RAKEZ)
Starting Price: AED 6,000*
- Why it’s a Top Budget Pick: RAKEZ offers highly competitive packages starting from AED 6,000*, providing incredible scalability for everything from a flexi-desk to large industrial land. It is home to over 30,000 companies.
- Best For: Manufacturing, industrial businesses, and SMEs seeking long-term, cost-effective growth.
- Shuraa Insight: The go-to zone for businesses that plan to scale from a small office to a large factory within a single, affordable jurisdiction.
4. International Free Zone Authority (IFZA) – Dubai
Starting Price: AED 10,900* (Often includes 1 Visa)
- Why it’s a Top Budget Pick: IFZA is one of Dubai’s most preferred hubs for cost-effective business setup. It offers the perfect balance of affordability and premium free zone benefits, with packages starting from AED 10,900*.
- Best For: General trading, e-commerce, service, and consultancy businesses seeking a Dubai address.
- Shuraa Insight: The best value for a cost-effective Dubai company setup with a visa often included.
5. Dubai Silicon Oasis (DSO) – Dubai
Starting Price: AED 11,900*
- Why it’s a Top Budget Pick: A leading tech-focused free zone, DSO offers state-of-the-art IT infrastructure at a highly competitive price, making it a top choice for cheapest company registration in the UAE for tech firms.
- Best For: Software development, AI, blockchain, e-commerce, and IT services.
- Shuraa Insight: The most affordable, tech-ready ecosystem within Dubai.
6. Dubai South Free Zone – Dubai
Starting Price: AED 12,000*
- Why it’s a Top Budget Pick: A strategic hub for logistics and aviation, Dubai South offers cost-effective setup options without compromising connectivity, making it a strong alternative among the cheapest free zones in the UAE.
- Best For: Logistics, aviation, and large-scale e-commerce operations.
- Shuraa Insight: World-class logistics infrastructure at a very competitive price point.
7. Meydan Free Zone – Dubai
Starting Price: AED 12,500* (Zero-Visa Package)
- Why it’s a Top Budget Pick: Meydan is one of Dubai’s fastest-growing hubs, known for its speedy setup and popular Fawri License. Its zero-visa package begins at an affordable AED 12,500*.
- Best For: E-commerce, consulting, digital businesses, and freelancers.
- Shuraa Insight: Ideal for solo entrepreneurs and digital startups who need a quick and affordable Dubai setup.
8. Jebel Ali Free Zone (JAFZA) – Dubai
Starting Price: AED 15,000*
- Why it’s a Top Budget Pick: Despite its premium global reputation, Jebel Ali Free Zone (JAFZA) offers competitive license packages starting at AED 15,000*, providing immense value for its world-class logistics ecosystem.
- Best For: International trading, logistics, shipping, and industrial manufacturing.
- Shuraa Insight: Unbeatable value for established traders, offering global credibility and access at a competitive price.
9. Dubai Media City (DMC)
Starting Price: Approximately AED 15,000* (for Freelancer/Startup packages)
- Why it’s a Top Budget Pick: Despite its premium reputation, DMC offers some of the lowest-cost business licenses for media activities in the UAE. It’s an attractive choice for startups and freelancers in the media industry.
- Best For: Film production, broadcasting, digital marketing agencies, PR firms, and content creators.
- Shuraa Insight: The most affordable way to get a license in a world-class media hub with global exposure.
10. Sharjah Research, Technology & Innovation Park (SRTIP)
Starting Price: AED 5,500*
- Why it’s a Top Budget Pick: Known for offering some of the cheapest free zone licenses in the UAE, SRTIP is a dynamic hub for technology and innovation, with fast setup often within 5 days.
- Best For: Tech startups, R&D companies, engineering, and sustainability-focused businesses.
- Shuraa Insight: Perfect for tech entrepreneurs who want a low-cost setup with the option for a dual license.
11. Dubai Healthcare City (DHC)
Starting Price: Approximately AED 14,900* (Varies by medical activity and facility)
- Why it’s a Top Budget Pick: As the world’s largest healthcare free zone, DHC offers a medically regulated environment. While specialized, it provides a cost-effective route for healthcare professionals to establish a compliant practice in Dubai.
- Best For: Hospitals, clinics, diagnostic labs, pharmaceutical companies, and wellness centres.
- Shuraa Insight: The most cost-effective way to establish a credible healthcare business in Dubai, with costs varying based on medical activity and facility requirements.
12. Dubai International Financial Centre (DIFC)
Starting Price: Approximately AED 10,000* (for qualifying non-financial entities)
- Why it’s a Top Budget Pick: While a leading financial hub, DIFC offers competitive, cost-effective licensing options for fintech startups, consulting firms, and select retail businesses, providing prestige at a reasonable cost.
- Best For: Financial services, FinTech, consulting firms, and professional service providers.
- Shuraa Insight: A prestigious address that is more accessible than often perceived, especially for non-banking financial services and professional consultants.
Beyond the License: Understanding the Full Cost of Setup
The advertised license fee is just one part of the picture. Smart entrepreneurs budget for these common additional costs:
- Visa Costs: The biggest variable. Each visa can cost AED 4,000* – 5,500* (including medical, Emirates ID, and stamping).
- Government Approvals: Specific activities (e.g., food trading, cosmetics) require special approvals from relevant ministries, which incur separate fees.
- Bank Account Opening: While free, some banks require an initial deposit (e.g., AED 5,000* – 10,000*) to activate the account.
- Document Attestation & Translation: If your educational or company documents are from abroad, they may need to be attested and translated, costing AED 500* – AED 2,000*.
- Annual Renewal Fees: Remember, your license and visas need yearly renewal, costing roughly 80-90% of the initial setup fee.
How Shuraa Protects You: We provide a fixed, all-inclusive quote with a detailed breakdown. No hidden fees, no surprises. You’ll know the exact cost from day one.
Maximizing Your Free Zone Business: Key Legal Insights for 2025
The UAE’s business landscape has evolved, creating more opportunities for free zone companies.
- 100% Ownership: You have full control of your company in any free zone, and now also in most mainland sectors.
- Operating on the Mainland: As a free zone company, you can legally conduct business with the mainland market by obtaining a permit from the Dubai Department of Economy and Tourism (DET, formerly DED) or by setting up a branch.
- Dual License Option: Some free zones like SRTIP offer a Dual License, allowing you to operate in both free zone and mainland under a single entity.
How to Set Up a Free Zone Company in Dubai
- Choose a business activity and legal entity: Define your business activities and select a legal structure, such as a Free Zone Establishment (FZE) or Free Zone Company (FZC).
- Select a free zone: Use your requirements from the steps above to pick the most suitable free zone.
- Reserve a trade name: Choose a unique company name that complies with UAE guidelines.
- Apply for a business license: Submit your application with the required documents, which often include passport copies and a business plan.
- Lease an office space: Select the appropriate office type within your chosen free zone.
- Pay fees and get your license: Pay the required license fees and complete the process to receive your official trade license.
- Open a corporate bank account: This is a final but essential step after your license is issued.
Real-Life Examples: Which Free Zone Was Cheapest for Them?
Case Study 1: The Digital Freelancer
- Profile: European graphic designer working with international clients.
- Need: Legal entity for invoicing, no office requirement, no employees.
- Options Compared: SHAMS vs. DSO vs. Meydan.
- Winner: SHAMS.
- Why: The AED 5,750 zero-visa package was perfect for remote operations.
- Total Cost: AED 5,750
Case Study 2: The E-Commerce Startup
- Profile: Online fitness equipment retailers.
- Need: Trading license, 2 visas, import capabilities, and affordable storage.
- Options Compared: Ajman vs. IFZA vs. RAKEZ.
- Winner: Ajman Free Zone (AFZ).
- Why: AFZ offered a complete package at an unbeatable price.
- Total Cost: ~AED 14,500.
Case Study 3: The Tech Consulting Firm
- Profile: IT consultants serving both free zone and mainland clients.
- Need: Professional license, 3 visas, and flexibility to operate across jurisdictions.
- Options Compared: DSO vs. IFZA vs. SRTIP.
- Winner: SRTIP
- Why: The Dual License option enabled mainland operations without a separate entity.
- Total Cost: ~AED 18,000 (including dual license fee)
Shuraa Insight: These examples show how matching business needs with the right free zone optimizes costs and flexibility.
You May Also Like It
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- Company Registration in Dubai Free Zones
- How to Get a UAE Residence Visa in 2025
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Frequently Asked Questions (FAQs)
1. Which is the absolute cheapest free zone in the UAE?
For a basic license, Ajman Free Zone (AFZ) and Sharjah Media City (SHAMS) are among the most affordable, with packages starting from AED 5,000* and AED 5,750* respectively. SRTIP also offers highly competitive pricing starting from AED 5,500*.
2. What is the cheapest free zone in Dubai specifically?
The International Free Zone Authority (IFZA) is widely considered one of the cheapest free zones in Dubai, with packages from AED 10,900*. Dubai South and Dubai Silicon Oasis (DSO) also offer excellent value starting from AED 12,000* and AED 11,900* respectively.
3. Can I get a cheap trade license in the UAE with a visa?
Yes. While a zero-visa license is the cheapest upfront, affordable zones like IFZA, RAKEZ, and Meydan offer packages that include one or more visas at a competitive total cost. This is often more cost-effective than adding visas separately.
4. What is the cheapest free zone for trading business?
Ajman Free Zone (AFZ) and RAKEZ typically offer the most cost-effective trading licenses, with AFZ starting from AED 5,000* and RAKEZ from AED 6,000* for commercial activities.
5. Which free zone is best for freelancers on a budget?
Sharjah Media City (SHAMS) is ideal for freelancers, offering licenses from AED 5,750* with no office requirement and support for over 1,500 professional activities.
6. How long does it take to get a free zone license?
Most affordable free zones like SHAMS, SRTIP, and Meydan offer quick setup, typically between 3-7 working days for complete company formation.
7. Can I upgrade my license later to include more activities?
Yes, most free zones allow you to add activities to your existing license, though additional government fees and approvals may apply.
8. Do I need to visit Dubai to set up my free zone company?
No, most free zones now offer remote setup options. Shuraa can handle the entire process digitally, from application to license delivery to your home country.
9. What is the difference between FZE and FZC?
A Free Zone Establishment (FZE) is a single-shareholder company, while a Free Zone Company (FZC) has 2-5 shareholders. Most startups begin with an FZE structure.
Why Choose Shuraa Business Setup?
Navigating UAE free zones and mainland setup requires expert guidance. As seasoned business setup consultants with over two decades of experience, Shuraa provides comprehensive support to launch your business successfully:
- Strategic Free Zone Selection: We analyze your business needs to recommend the perfect free zone, matching your activity, budget, and growth plans with the right jurisdiction.
- Streamlined Documentation & Processing: Our experts handle all paperwork preparation and submission, ensuring error-free applications and faster approvals.
- Direct Free Zone Partnerships: With established relationships across all major free zones, we secure the best pricing and expedite your licensing process.
- End-to-End Business Setup: From trade name reservation and license application to office space selection and government liaison, we manage every step.
- Post-License Business Support: We provide ongoing assistance with corporate bank account opening, visa processing for employees and family, and annual compliance renewals.
- Cost-Effective Solutions: Our transparent, all-inclusive packages guarantee the best value with no hidden fees, backed by flexible payment options.
Conclusion: Start Your UAE Business Journey with Confidence
Choosing the right free zone is the first crucial step toward building a successful business in the UAE. While affordability is important, the ideal free zone should balance cost with the right features for your specific business needs – whether that’s industry specialization, visa flexibility, or growth potential.
The UAE’s free zones offer unprecedented opportunities for entrepreneurs worldwide, combining business-friendly regulations with world-class infrastructure. From the budget-friendly options like Ajman Free Zone and SHAMS to the specialized ecosystems of DIFC and Dubai Healthcare City, there’s a perfect solution for every business type and budget.
Ready to turn your business dreams into reality? Let Shuraa’s experts guide you to the most cost-effective free zone solution and handle your complete company setup seamlessly.
