RAKEZ vs DAFZA: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
RAKEZ (licences from about AED 6,000) and DAFZA (from about AED 15,020) are both UAE free zones — RAKEZ has the lower entry price. RAKEZ best suits: Cost-conscious SMEs, traders, freelancers and consultants, e-commerce sellers, and especially industrial or manufacturing businesses needing warehouses or land. 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. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
RAKEZ and DAFZA side by side
Approximate budgeting figures — your final quote is confirmed in writing. Government fees are passed through at cost, never marked up.
| Criteria | RAKEZ | DAFZA |
|---|---|---|
| Licence from | AED 6,000 | AED 15,020 |
| Emirate | Ras Al Khaimah | Dubai |
| Location | Al Hamra Industrial Zone & Al Nakheel, Ras Al Khaimah | Dubai Airport Free Zone, next to Dubai International Airport (DXB), Deira |
| Visas | Visa allocation is tied to your workspace, not bought freely. | Visa allocation is tied to the office space you lease, not bought as a flat add-on. |
| Activities | RAKEZ maintains a comprehensive activity list across manufacturing, trading, services, media, education, IT, logistics and more. | 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). |
Lower entry price: RAKEZ.
Which one should you pick?
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.
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.
Cost breakdowns
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
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)
Strengths and trade-offs
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
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.
Frequently asked questions
Which is cheaper, RAKEZ or DAFZA?+
RAKEZ licences start from about AED 6,000 (zero-visa licence, flexi-desk, approx — visa packages cost more). DAFZA starts 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.). 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 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.
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.
How do I decide between RAKEZ and DAFZA?+
Compare licence cost, visa allocation and activity fit. RAKEZ: Visa allocation is tied to your workspace, not bought freely. DAFZA: Visa allocation is tied to the office space you lease, not bought as a flat add-on. 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 RAKEZ and DAFZA?
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.