JAFZA vs UAQ FTZ: 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 UAQ FTZ (from about AED 5,500) are both UAE free zones — UAQ FTZ 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. UAQ FTZ best suits: Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
JAFZA and UAQ FTZ 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 | UAQ FTZ |
|---|---|---|
| Licence from | AED 15,000 | AED 5,500 |
| Emirate | Dubai | Umm Al Quwain |
| Location | Jebel Ali, beside Jebel Ali Port and Al Maktoum International Airport | Umm Al Quwain, on the E311 (~30 min from Dubai) |
| Visas | JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. | Packages define the visa count: UAQ LYTE is a zero-visa package, and UAQ START includes one UAE residence visa with medical, Emirates ID and insurance covered. |
| Activities | JAFZA licences are grouped by activity. | 1,500+ business options across five licence families: commercial, general trading, service/consultancy, freelance permits (technology, media and film roles) and industrial (physical facility mandatory). |
Lower entry price: UAQ FTZ.
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 UAQ FTZ if
Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port.
Think twice if
Businesses that need a Dubai or Abu Dhabi prestige address, regulated financial-services firms (DIFC or ADGM fit better), and B2C sellers who want to deliver directly to UAE mainland consumers — mainland deliveries from a UAQ FTZ licence are B2B only or run through licensed logistics partners.
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+
UAQ FTZ
from AED 5,500
UAQ LYTE package (zero visa)
E-commerce licence, up to 3 activities, flexi-desk; monthly instalment options advertised
From AED 5,500 (published)
UAQ START all-inclusive (1 visa)
Licence + residence visa, medical, Emirates ID, medical insurance, e-channel, establishment card, coworking lease, bank-account assistance
AED 12,500 (published)
Freelance permit + visa
Instalment pricing for technology, media and film roles
From AED 1,818/month (advertised)
Warehouse or industrial land
Ready-to-occupy warehouses (incl. pay-per-day) and land leases up to 25 years
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.
UAQ FTZ
- The lowest published package on this list: UAQ LYTE from AED 5,500 with three activities and a flexi-desk included.
- Genuinely all-inclusive one-visa bundle at a fixed published AED 12,500 — licence, visa, Emirates ID, medical, insurance, establishment card and lease in one price.
- Government stability: operated directly by the Emirate of Umm Al Quwain, with designated-zone status under Cabinet Decision 54/2023.
- Instalment plans advertised on packages — from AED 1,818/month for a freelance permit with visa.
- Industrial depth unusual at this price point: warehouses (pay-per-day available), land leases to 25 years, E311 access and UAQ Port.
- Mainland reach is limited: deliveries into the UAE mainland are B2B only or must run through licensed logistics partners (Amazon FBA, Noon fulfilment, couriers) — direct B2C mainland delivery on your own is not part of the licence.
- Umm Al Quwain is a small emirate: fewer banks, amenities and networking on the ground than Dubai or Sharjah, even at 30 minutes' drive.
- The AED 5,500 LYTE package is zero-visa — the moment you need residency, you are into the AED 12,500 START bundle or a quoted package.
- An Umm Al Quwain address carries less brand weight with some clients and counterparties than a Dubai licence.
Frequently asked questions
Which is cheaper, JAFZA or UAQ FTZ?+
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). UAQ FTZ starts from about AED 5,500 (from / published — UAQ LYTE package (zero-visa e-commerce licence, up to 3 activities, flexi-desk) at AED 5,500; the all-inclusive one-visa UAQ START package is a published AED 12,500; other licence types and facilities are quoted, and government and visa fees are added where applicable). UAQ FTZ 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 UAQ FTZ best for?+
Online sellers, dropshippers and solo founders who want the cheapest credible published package in the UAE (UAQ LYTE at AED 5,500); founders who need licence-plus-visa in one transparent bundle (UAQ START at AED 12,500); and light-industrial, trading and logistics businesses using its warehouses, land and UAQ Port.
How do I decide between JAFZA and UAQ FTZ?+
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. UAQ FTZ: Packages define the visa count: UAQ LYTE is a zero-visa package, and UAQ START includes one UAE residence visa with medical, Emirates ID and insurance covered. 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 UAQ FTZ?
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.