DAFZA vs ADGM: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
DAFZA (licences from about AED 15,020) and ADGM (from about AED 5,509) are both UAE free zones — ADGM has the lower entry price. DAFZA best suits: Aviation, freight forwarding, logistics, electronics, pharma, luxury goods and trading companies that need physical airport proximity, a prestige Dubai address, and an office or warehouse on-site. 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. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
DAFZA and ADGM side by side
Approximate budgeting figures — your final quote is confirmed in writing. Government fees are passed through at cost, never marked up.
| Criteria | DAFZA | ADGM |
|---|---|---|
| Licence from | AED 15,020 | AED 5,509 |
| Emirate | Dubai | Abu Dhabi |
| Location | Dubai Airport Free Zone, next to Dubai International Airport (DXB), Deira | Al Maryah Island / Al Reem Island |
| Visas | Visa allocation is tied to the office space you lease, not bought as a flat add-on. | Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. |
| Activities | DAFZA licences cover Trading, Service, Industrial and General Trading categories, with roughly 15 broad industry groups (aviation, electronics, pharma, logistics, consulting, insurance, chemicals, auto parts and more). | Activities are grouped into Financial (Category A), Non-Financial (Category B) and Retail (Category C), with a published permitted-activities list. |
Lower entry price: ADGM.
Which one should you pick?
Choose DAFZA if
Aviation, freight forwarding, logistics, electronics, pharma, luxury goods and trading companies that need physical airport proximity, a prestige Dubai address, and an office or warehouse on-site. Suits funded businesses that value reputation over the lowest possible cost.
Think twice if
Solo founders, freelancers and early-stage startups chasing the cheapest licence. DAFZA's mandatory office and higher fees make it poor value if you do not need airport proximity or the prestige - cheaper Dubai zones like IFZA or Meydan are better-fit there.
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.
Cost breakdowns
DAFZA
from AED 15,020
Trade / Service licence (annual)
From; Industrial / General Trading runs higher (approx AED 20,000+).
AED 15,020+
Registration / incorporation fee
One-time, approx.
AED 7,000
Establishment card
Annual; renewal slightly lower (approx AED 1,870).
AED 1,500 - 2,020
Immigration / e-channel registration
One-time, only if hiring / sponsoring visas, approx.
AED 1,000 - 2,000
Smart-desk / office (mandatory)
Annual; the smallest smart-desk (~6.65 sq.m) starts around AED 16,600 and is required to issue any licence. Larger offices / warehouses cost more.
AED 16,000 - 24,000+
Name reservation + initial approval
One-time, approx.
AED 1,000
Knowledge + postal / PO Box fee
Annual, included in most DAFZA packages, approx.
AED 1,010 - 1,125
Medical test + Emirates ID (per visa)
Per person; includes visa stamping, medical and Emirates ID, approx.
AED 1,200 - 3,500
Corporate tax registration (FTA)
Registration is free; 9% applies on taxable income above thresholds. Qualifying free-zone income may be 0%.
AED 0 (govt)
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
Strengths and trade-offs
DAFZA
- Unmatched airport proximity - ideal for time-sensitive cargo, perishables and pharma.
- Prestige address that signals scale and credibility to partners and banks.
- 100% ownership, profit repatriation and no personal income tax.
- Dual-licence route to also trade on the Dubai mainland.
- Premium on-site infrastructure: Grade-A offices, warehouses and logistics units.
- Higher cost than most Dubai free zones - you pay a premium for location and prestige.
- A smart-desk or office is mandatory; there is no true zero-rent licence here, and office rent alone starts around AED 16,600.
- Visa quota is fixed by office size, so scaling headcount can mean leasing more space.
- Overkill for solo founders and budget startups who do not need airport access.
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.
Frequently asked questions
Which is cheaper, DAFZA or ADGM?+
DAFZA licences start from about AED 15,020 (Licence fee only, approx. A mandatory smart-desk plus registration and establishment fees pushes a realistic complete setup (smallest package, 1 visa) to around AED 40,000.). ADGM starts 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). 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 DAFZA best for?+
Aviation, freight forwarding, logistics, electronics, pharma, luxury goods and trading companies that need physical airport proximity, a prestige Dubai address, and an office or warehouse on-site. Suits funded businesses that value reputation over the lowest possible cost.
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.
How do I decide between DAFZA and ADGM?+
Compare licence cost, visa allocation and activity fit. DAFZA: Visa allocation is tied to the office space you lease, not bought as a flat add-on. ADGM: Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. 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 DAFZA and ADGM?
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.