ADGM vs UAQ FTZ: 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 UAQ FTZ (from about AED 5,500) are both UAE free zones — UAQ FTZ 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. UAQ FTZ best suits: Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
ADGM and UAQ FTZ 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 | UAQ FTZ |
|---|---|---|
| Licence from | AED 5,509 | AED 5,500 |
| Emirate | Abu Dhabi | Umm Al Quwain |
| Location | Al Maryah Island / Al Reem Island | Umm Al Quwain, on the E311 (~30 min from Dubai) |
| Visas | Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. | Packages define the visa count: UAQ LYTE is a zero-visa package, and UAQ START includes one UAE residence visa with medical, Emirates ID and insurance covered. |
| Activities | Activities are grouped into Financial (Category A), Non-Financial (Category B) and Retail (Category C), with a published permitted-activities list. | 1,500+ business options across five licence families: commercial, general trading, service/consultancy, freelance permits (technology, media and film roles) and industrial (physical facility mandatory). |
Lower entry price: UAQ FTZ.
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 UAQ FTZ if
Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port.
Think twice if
Businesses that need a Dubai or Abu Dhabi prestige address, regulated financial-services firms (DIFC or ADGM fit better), and B2C sellers who want to deliver directly to UAE mainland consumers — mainland deliveries from a UAQ FTZ licence are B2B only or run through licensed logistics partners.
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
UAQ FTZ
from AED 5,500
UAQ LYTE package (zero visa)
E-commerce licence, up to 3 activities, flexi-desk; monthly instalment options advertised
From AED 5,500 (published)
UAQ START all-inclusive (1 visa)
Licence + residence visa, medical, Emirates ID, medical insurance, e-channel, establishment card, coworking lease, bank-account assistance
AED 12,500 (published)
Freelance permit + visa
Instalment pricing for technology, media and film roles
From AED 1,818/month (advertised)
Warehouse or industrial land
Ready-to-occupy warehouses (incl. pay-per-day) and land leases up to 25 years
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.
UAQ FTZ
- The lowest published package on this list: UAQ LYTE from AED 5,500 with three activities and a flexi-desk included.
- Genuinely all-inclusive one-visa bundle at a fixed published AED 12,500 — licence, visa, Emirates ID, medical, insurance, establishment card and lease in one price.
- Government stability: operated directly by the Emirate of Umm Al Quwain, with designated-zone status under Cabinet Decision 54/2023.
- Instalment plans advertised on packages — from AED 1,818/month for a freelance permit with visa.
- Industrial depth unusual at this price point: warehouses (pay-per-day available), land leases to 25 years, E311 access and UAQ Port.
- Mainland reach is limited: deliveries into the UAE mainland are B2B only or must run through licensed logistics partners (Amazon FBA, Noon fulfilment, couriers) — direct B2C mainland delivery on your own is not part of the licence.
- Umm Al Quwain is a small emirate: fewer banks, amenities and networking on the ground than Dubai or Sharjah, even at 30 minutes' drive.
- The AED 5,500 LYTE package is zero-visa — the moment you need residency, you are into the AED 12,500 START bundle or a quoted package.
- An Umm Al Quwain address carries less brand weight with some clients and counterparties than a Dubai licence.
Frequently asked questions
Which is cheaper, ADGM or UAQ FTZ?+
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). UAQ FTZ starts from about AED 5,500 (from / published — UAQ LYTE package (zero-visa e-commerce licence, up to 3 activities, flexi-desk) at AED 5,500; the all-inclusive one-visa UAQ START package is a published AED 12,500; other licence types and facilities are quoted, and government and visa fees are added where applicable). UAQ FTZ 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 UAQ FTZ best for?+
Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port.
How do I decide between ADGM and UAQ FTZ?+
Compare licence cost, visa allocation and activity fit. ADGM: Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. UAQ FTZ: Packages define the visa count: UAQ LYTE is a zero-visa package, and UAQ START includes one UAE residence visa with medical, Emirates ID and insurance covered. 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 UAQ FTZ?
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.