IFZA vs RAKEZ: 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 RAKEZ (from about AED 6,000) are both UAE free zones — RAKEZ 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. RAKEZ best suits: Cost-conscious SMEs, traders, freelancers and consultants, e-commerce sellers, and especially industrial or manufacturing businesses needing warehouses or land. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
IFZA and RAKEZ 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 | RAKEZ |
|---|---|---|
| Licence from | AED 12,900 | AED 6,000 |
| Emirate | Dubai | Ras Al Khaimah |
| Location | Dubai Silicon Oasis / Dubai Digital Park | Al Hamra Industrial Zone & Al Nakheel, Ras Al Khaimah |
| Visas | IFZA uses a package-based visa quota. | Visa allocation is tied to your workspace, not bought freely. |
| Activities | IFZA offers more than 2,000 business activities across professional, commercial, consulting, trading, media, IT and general-trading categories. | RAKEZ maintains a comprehensive activity list across manufacturing, trading, services, media, education, IT, logistics and more. |
Lower entry price: RAKEZ.
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 RAKEZ if
Cost-conscious SMEs, traders, freelancers and consultants, e-commerce sellers, and especially industrial or manufacturing businesses needing warehouses or land. A common pick for Dubai-based founders who want a cheaper free zone licence and don't need a Dubai address on the trade licence.
Think twice if
Businesses that need to sell directly to the UAE mainland or take government contracts (a free zone licence alone doesn't allow that — you'd need a mainland licence or local distributor). Also not ideal for founders who want a prestigious Dubai address, or those needing many employee visas on a small flexi-desk.
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
RAKEZ
from AED 6,000
Trade licence (zero-visa, with flexi-desk)
Starter/zero-visa packages; varies by licence type and activities
AED 6,000–9,000/yr
All-inclusive licence with 1 visa (incl. flexi-desk)
Bundled trade licence + 1 visa quota + coworking access
from AED 14,000/yr
Establishment card (immigration registration)
Required once before processing any residence visa
from AED 1,000
Investor / partner residence visa
Approx, excludes medical and Emirates ID below
from AED 4,500
Medical test + Emirates ID
Per person, paid to government / typing centres
approx AED 700
Name reservation + initial approval
Usually bundled in the package; standalone fees are nominal
often included
Flexi-desk / coworking workspace
Included in most starter packages; private offices cost extra
usually included
UAE corporate tax registration
Registration is mandatory; 0% on qualifying free zone income, 9% above AED 375k otherwise
no government fee
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.
RAKEZ
- Genuinely low cost — among the cheapest credible UAE free zones to start and renew
- Excellent for industrial, manufacturing and logistics thanks to warehouses and land plots
- Flexible activity mixing — up to 7 in a category or ~10 mixed on one licence
- Fast issuance, 100% foreign ownership, and full profit repatriation
- Dual-licence option lets a single entity hold both free zone and mainland activities
- It's in Ras Al Khaimah, not Dubai — the trade licence and registered address are RAK, which some clients or banks prefer to see as Dubai
- Like any free zone, you can't sell directly to the UAE mainland without a mainland licence or distributor
- Visa quota is capped by workspace — a cheap flexi-desk limits you to a small number of visas
- Some bank branches and processing happen from RAK, which can mean extra travel or coordination
Frequently asked questions
Which is cheaper, IFZA or RAKEZ?+
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). RAKEZ starts from about AED 6,000 (zero-visa licence, flexi-desk, approx — visa packages cost more). RAKEZ 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 RAKEZ best for?+
Cost-conscious SMEs, traders, freelancers and consultants, e-commerce sellers, and especially industrial or manufacturing businesses needing warehouses or land. A common pick for Dubai-based founders who want a cheaper free zone licence and don't need a Dubai address on the trade licence.
How do I decide between IFZA and RAKEZ?+
Compare licence cost, visa allocation and activity fit. IFZA: IFZA uses a package-based visa quota. RAKEZ: Visa allocation is tied to your workspace, not bought freely. 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 RAKEZ?
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.