ADGM vs Dubai South: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
ADGM (licences from about AED 5,509) and Dubai South (from about AED 12,500) are both UAE free zones — ADGM has the lower entry price. ADGM best suits: Financial-services firms, asset and fund managers, VCs and fintechs regulated by the FSRA; holding companies, SPVs, family offices and foundations; and Hub71-eligible tech start-ups. Dubai South best suits: Logistics, freight and e-commerce fulfilment operations, aviation and aerospace businesses, and traders who want airport-side operations in the corridor Dubai is building around Al Maktoum International. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
ADGM and Dubai South side by side
Approximate budgeting figures — your final quote is confirmed in writing. Government fees are passed through at cost, never marked up.
| Criteria | ADGM | Dubai South |
|---|---|---|
| Licence from | AED 5,509 | AED 12,500 |
| Emirate | Abu Dhabi | Dubai |
| Location | Al Maryah Island / Al Reem Island | Dubai World Central / Al Maktoum Airport |
| Visas | Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. | The Business Hub package is sold with the option to add visas, and the zone's own Free Zone Management issues visas and work permits on site. |
| Activities | Activities are grouped into Financial (Category A), Non-Financial (Category B) and Retail (Category C), with a published permitted-activities list. | Three registration routes: the Business Hub free-zone package, DWC LLC companies and branches, and freelancer professional permits. |
Lower entry price: ADGM.
Which one should you pick?
Choose ADGM if
Financial-services firms, asset and fund managers, VCs and fintechs regulated by the FSRA; holding companies, SPVs, family offices and foundations; and Hub71-eligible tech start-ups. The right pick when a common-law jurisdiction, a credible financial-centre address and Abu Dhabi's capital ecosystem matter more than the lowest possible licence price.
Think twice if
Businesses selling directly to UAE mainland consumers (shops, restaurants, clinics), general trading, logistics or warehousing operations (JAFZA or RAKEZ fit better), and cost-sensitive solo founders — a standard non-financial licence runs ~USD 5,800 in year one plus a mandatory office lease, unless you qualify for the tech start-up incentive or an SPV.
Choose Dubai South if
Logistics, freight and e-commerce fulfilment operations, aviation and aerospace businesses, and traders who want airport-side operations in the corridor Dubai is building around Al Maktoum International. Also a practical government-run package option (Business Hub) for SMEs and startups that want a published-price Dubai licence with same-day issuance.
Think twice if
Regulated financial-services firms (DIFC or ADGM fit better), businesses that need a prime central-Dubai address or walk-in mainland retail, and founders hunting the absolute cheapest paper licence — Shams and RAKEZ start lower. The district is still building out, so day-to-day city amenities are thinner than central Dubai.
Cost breakdowns
ADGM
from AED 5,509
Tech Start-up licence (incentivised, 3 years)
Hub71 eligibility approval required (average 21-day review); covers registration plus two renewals, then standard fees apply
USD 1,500 (~AED 5,509)
Non-financial licence (Category B), year 1
Name reservation, incorporation, licence, business-activity and data-protection fees; renewal USD 5,300/yr
USD 5,800 (~AED 21,300)
Retail licence (Category C), year 1
Renewal USD 2,300/yr
USD 2,800 (~AED 10,283)
Financial licence (Category A), year 1
FSRA authorisation is a separate prior process; renewal USD 16,500/yr
USD 17,000 (~AED 62,433)
SPV (special purpose vehicle)
Renewal USD 1,400/yr; no physical office required
USD 1,900 (~AED 6,978)
Foundation
Renewal USD 500/yr
USD 1,000 (~AED 3,673)
Registered office / lease
A registered office in ADGM is mandatory (except SPVs) and a lease registration fee applies; options on Al Maryah and Al Reem
Quote-based
UAE corporate tax registration
Registration with the Federal Tax Authority is free of charge
Government fee: AED 0
Dubai South
from AED 12,500
Business Hub free-zone package
Same-day issuance, flexi-desk access, option to add visas; a promotional AED 11,375 was displayed at the time of checking (2026-08)
AED 12,500 (published)
DWC LLC company or branch
Registered through the Dubai South customer portal; fees confirmed per activity and facility
Quote-based
Freelancer professional licence
Individual professional permit within Dubai South
Quote-based
Office, warehouse or plot
Options across the Business Park and Logistics District; built-to-suit available
Quote-based
UAE corporate tax registration
Registration with the Federal Tax Authority is free of charge
Government fee: AED 0
Strengths and trade-offs
ADGM
- Direct English common law with ADGM's own courts — funds, holding structures and contract-heavy businesses get a familiar legal system.
- Transparent, published USD fee schedule from the Registration Authority — you can verify every registration fee yourself.
- Meaningful incentives: USD 1,500 three-year tech start-up licence, USD 700 social-enterprise fee, and light SPV/foundation regimes.
- One of the world's largest financial districts (14.38M sqm across two islands) with Abu Dhabi's Hub71 tech ecosystem.
- Digital-first registry: complete applications through the Online Registry Solution can be processed within a few days.
- Fees are charged in USD and sit above budget-zone level — a standard non-financial licence is ~USD 5,800 in year one versus ~AED 12,500–12,900 at IFZA or Meydan.
- A physical office is mandatory for all entities except SPVs, adding Abu Dhabi commercial rent to the real total.
- Financial activities need FSRA authorisation before incorporation — a longer and more demanding path than a non-financial licence.
- Based in Abu Dhabi — less convenient day-to-day for Dubai-centred teams and clients.
- Like any free zone, selling directly into the UAE mainland market requires additional arrangements or licensing.
Dubai South
- Published-price government package (AED 12,500) with same-day licence issuance — rare clarity among Dubai zones.
- The strategic bet: Dubai is building its future aviation capacity at Al Maktoum, and Dubai South is the city around it.
- Sea-air-rail logistics corridor: 30 km to Jebel Ali Port plus Etihad Rail — built for freight and fulfilment.
- On-site regulator (DACC Free Zone Management) for visas, permits and NOCs — no cross-town government runs.
- Dedicated aerospace cluster (MBR Aerospace Hub) and an employment dispute mediation service for licensees.
- DWC LLC, branch and freelancer fees are not published — those routes are quote-based through the portal.
- The district is still developing: fewer offices, restaurants and services on the ground than central Dubai today.
- Distance: roughly 45–60 minutes from Downtown and DIFC — a real commute if your clients sit in central Dubai.
- Like any free zone, direct mainland UAE retail requires additional licensing or arrangements.
- Cheapest-licence hunters can start lower at Shams (AED 5,750) or RAKEZ (AED 6,000).
Frequently asked questions
Which is cheaper, ADGM or Dubai South?+
ADGM licences start from about AED 5,509 (from / approx — incentivised Tech Start-up licence (USD 1,500 ≈ AED 5,509 at the official USD/AED 3.6725 rate) covering registration plus two renewals over 3 years; requires a Hub71 eligibility approval letter. A standard non-financial licence totals ~USD 5,800 (≈ AED 21,300) in year one. Office lease and visas are separate). Dubai South starts from about AED 12,500 (from / published — Business Hub free-zone package (AED 12,500 list; a promotional AED 11,375 was displayed when checked, 2026-08) with flexi-desk access, same-day issuance and the option to add visas. DWC LLC / branch and freelancer routes are quoted via the Dubai South portal; visas and government fees are separate). ADGM has the lower headline price, but your real total depends on visa count and office needs — always compare a written, itemised quote.
Who is ADGM best for?+
Financial-services firms, asset and fund managers, VCs and fintechs regulated by the FSRA; holding companies, SPVs, family offices and foundations; and Hub71-eligible tech start-ups. The right pick when a common-law jurisdiction, a credible financial-centre address and Abu Dhabi's capital ecosystem matter more than the lowest possible licence price.
Who is Dubai South best for?+
Logistics, freight and e-commerce fulfilment operations, aviation and aerospace businesses, and traders who want airport-side operations in the corridor Dubai is building around Al Maktoum International. Also a practical government-run package option (Business Hub) for SMEs and startups that want a published-price Dubai licence with same-day issuance.
How do I decide between ADGM and Dubai South?+
Compare licence cost, visa allocation and activity fit. ADGM: Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. Dubai South: The Business Hub package is sold with the option to add visas, and the zone's own Free Zone Management issues visas and work permits on site. If you are still unsure, our free zone selector or a free 30-minute PRO Health Check will confirm the better fit for your case.
Still torn between ADGM and Dubai South?
Tell us your activity and how many visas you need, and we'll confirm the better-fit zone and its real cost — in writing, line by line.