IFZA vs ADGM: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
IFZA (licences from about AED 12,900) and ADGM (from about AED 5,509) are both UAE free zones — ADGM has the lower entry price. IFZA best suits: Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. 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.
IFZA 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 | IFZA | ADGM |
|---|---|---|
| Licence from | AED 12,900 | AED 5,509 |
| Emirate | Dubai | Abu Dhabi |
| Location | Dubai Silicon Oasis / Dubai Digital Park | Al Maryah Island / Al Reem Island |
| Visas | IFZA uses a package-based visa quota. | Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. |
| Activities | IFZA offers more than 2,000 business activities across professional, commercial, consulting, trading, media, IT and general-trading categories. | 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 IFZA if
Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. Ideal for solo founders and small teams who do not need a physical mainland storefront.
Think twice if
Businesses that must sell directly to the UAE mainland (retail shops, restaurants, clinics), need a large physical office or warehouse, or require a prestige financial-district address (DIFC/ADGM). Companies needing many visas may find dedicated-office requirements push costs above the headline figure.
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
IFZA
from AED 12,900
Trade licence (zero-visa, base package)
Two-year package including flexi-desk access (best value); one-visa packages from ~AED 15,000
AED 12,900 (from)
Establishment / immigration (e-channel) card
Required once you take any visa
AED 2,000 (approx)
Residence visa processing (per visa)
Inside-country processing; varies by visa type
AED 3,500–4,500
Flexi-desk / office
Flexi-desk access included; dedicated office AED 5,000–20,000+/yr
Included (base)
Company name reservation & initial approval
Typically bundled in the licence package
Included
Medical test + Emirates ID (per visa)
Medical ~AED 350–400, Emirates ID ~AED 370; health insurance extra (AED 600+)
AED 700–800
UAE corporate tax registration
Federal Tax Authority registration is free; 9% tax applies on profit above AED 375,000. Advisor/filing fees separate
Government fee: AED 0
Realistic first-year total (1 visa)
Approx — licence, card, one visa, medical, Emirates ID and insurance combined
AED 21,000–26,000
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
IFZA
- Among the lowest-cost Dubai free-zone licences, with a true zero-visa entry point.
- Very flexible — scale visas and activities up or down without changing free zone.
- Fast, paperwork-light setup with remote (no-visit) formation possible.
- 100% foreign ownership and full repatriation of capital and profits.
- Wide activity list (2,000+) and up to 7 activities bundled on one licence.
- Multi-year licences reduce the effective annual cost.
- The headline AED 12,900 is licence-only; real first-year cost with one visa, cards, medical and insurance is typically AED 21,000–26,000.
- No direct mainland trade — selling to the UAE mainland needs a distributor, dual licence or extra approvals.
- Higher visa counts can trigger dedicated-office requirements that raise cost.
- Not a prestige financial-district address — DIFC/ADGM carry more weight for regulated finance.
- Some activities (e.g. regulated or specialised ones) need extra external approvals and fees.
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, IFZA or ADGM?+
IFZA licences start from about AED 12,900 (from / approx — zero-visa, two-year package with flexi-desk access; government and visa fees added on top). 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 IFZA best for?+
Consultants, freelancers, service firms, marketing/IT agencies, holding companies and traders who want an affordable Dubai free zone with flexible visa numbers and a wide activity list. Ideal for solo founders and small teams who do not need a physical mainland storefront.
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 IFZA and ADGM?+
Compare licence cost, visa allocation and activity fit. IFZA: IFZA uses a package-based visa quota. 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 IFZA 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.