JAFZA vs ADGM: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
JAFZA (licences from about AED 15,000) and ADGM (from about AED 5,509) are both UAE free zones — ADGM has the lower entry price. JAFZA best suits: Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. 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.
JAFZA 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 | JAFZA | ADGM |
|---|---|---|
| Licence from | AED 15,000 | AED 5,509 |
| Emirate | Dubai | Abu Dhabi |
| Location | Jebel Ali, beside Jebel Ali Port and Al Maktoum International Airport | Al Maryah Island / Al Reem Island |
| Visas | JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. | Visas are sponsored by the ADGM entity and processed through the ACCESSADGM government-services portal. |
| Activities | JAFZA licences are grouped by activity. | 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 JAFZA if
Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. Ideal for companies that physically move, store or process goods and want to sit on top of Jebel Ali Port with bonded warehousing and on-site customs.
Think twice if
Solo consultants, freelancers, online-only service firms and early-stage startups testing an idea — JAFZA's mandatory office/warehouse and higher fees make it overkill and expensive for them. Anyone wanting a true zero-visa, flexi-desk-only setup should look at a cheaper zone like IFZA. Businesses selling directly to the UAE mainland still face the usual free-zone restrictions.
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
JAFZA
from AED 15,000
Logistics / general-trading licence
Per year. Standard trading/service licences are cheaper (~AED 5,000–5,500). Licence fee only — facility is separate and mandatory
AED 15,000 (from)
General trading licence
Per year; allows unlimited trading activities across groups
AED 20,000 (from)
Office / warehouse / plot (mandatory)
Flexi/smart desk from ~AED 15,000; private office ~AED 60,000+; warehouse from ~AED 48,000 (200–300 sqm); plots quoted per sq ft
AED 15,000–200,000+
Establishment / immigration card
Year 1; renewal around AED 1,910. Required to sponsor visas
AED 1,975 (approx)
Residence visa (per person)
All-in including medical and Emirates ID; health insurance from ~AED 600/person
AED 3,500–5,000
Name reservation & initial approval
Usually bundled into the registration and licence package
Included / nominal
UAE corporate tax registration
FTA registration is free; 9% applies on profit above AED 375,000. Qualifying free-zone income may be 0% if conditions are met
Government fee: AED 0
Realistic first-year total (trading + warehouse + ~3 visas)
Approx — licence, mandatory warehouse/office, cards, visas and insurance. Industrial/large-scale setups are quote-based and can run well above this
AED 90,000–150,000+
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
JAFZA
- Unmatched logistics location — on top of Jebel Ali Port and next to Al Maktoum International Airport, with on-site customs clearance.
- Bonded warehousing and duty suspension on re-exports make it ideal for import-distribute-re-export models.
- Real estate at scale — warehouses, temperature-controlled units, and large industrial land plots you cannot get in a desk-only free zone.
- High visa capacity for large teams — warehouse and plot leases unlock 15–50+ visas.
- Globally recognised, established free zone — a credible address for trading houses and regional headquarters.
- 100% foreign ownership, full profit repatriation and FZE/FZCO flexibility.
- Expensive versus low-cost zones — a mandatory office/warehouse pushes realistic first-year cost to AED 90,000–150,000+, not the licence headline.
- No genuine flexi-desk-only path for operational companies — a physical facility is required, so it is overkill for solo or online businesses.
- Industrial, warehousing and plot pricing is quote-based and varies by size and location — harder to budget upfront than a fixed package.
- Visas are tied to leased space, so scaling headcount usually means leasing more area.
- Still a free zone for direct mainland sales — selling goods inside the UAE mainland needs a distributor, branch or dual licence.
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, JAFZA or ADGM?+
JAFZA licences start from about AED 15,000 (from / approx — this is the logistics / general-trading licence fee; a standard trading or service licence is cheaper (~AED 5,000–5,500). A physical office, warehouse or plot is mandatory and quote-based, so real first-year setups run far higher (AED 90,000–150,000+). Industrial and warehousing projects are priced on a bespoke quote). 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 JAFZA best for?+
Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. Ideal for companies that physically move, store or process goods and want to sit on top of Jebel Ali Port with bonded warehousing and on-site customs.
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 JAFZA and ADGM?+
Compare licence cost, visa allocation and activity fit. JAFZA: JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. 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 JAFZA 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.