DAFZA vs Dubai South: 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 Dubai South (from about AED 12,500) are both UAE free zones — Dubai South 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. 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.
DAFZA 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 | DAFZA | Dubai South |
|---|---|---|
| Licence from | AED 15,020 | AED 12,500 |
| Emirate | Dubai | Dubai |
| Location | Dubai Airport Free Zone, next to Dubai International Airport (DXB), Deira | Dubai World Central / Al Maktoum Airport |
| Visas | Visa allocation is tied to the office space you lease, not bought as a flat add-on. | 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 | 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). | Three registration routes: the Business Hub free-zone package, DWC LLC companies and branches, and freelancer professional permits. |
Lower entry price: Dubai South.
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 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
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)
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
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.
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, DAFZA or Dubai South?+
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.). 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). Dubai South 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 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 DAFZA and Dubai South?+
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. 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 DAFZA 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.