RAKEZ vs JAFZA: 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 JAFZA (from about AED 15,000) 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. 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. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
RAKEZ and JAFZA 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 | JAFZA |
|---|---|---|
| Licence from | AED 6,000 | AED 15,000 |
| Emirate | Ras Al Khaimah | Dubai |
| Location | Al Hamra Industrial Zone & Al Nakheel, Ras Al Khaimah | Jebel Ali, beside Jebel Ali Port and Al Maktoum International Airport |
| Visas | Visa allocation is tied to your workspace, not bought freely. | JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. |
| Activities | RAKEZ maintains a comprehensive activity list across manufacturing, trading, services, media, education, IT, logistics and more. | JAFZA licences are grouped by activity. |
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 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.
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
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+
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
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.
Frequently asked questions
Which is cheaper, RAKEZ or JAFZA?+
RAKEZ licences start from about AED 6,000 (zero-visa licence, flexi-desk, approx — visa packages cost more). JAFZA starts 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). 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 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.
How do I decide between RAKEZ and JAFZA?+
Compare licence cost, visa allocation and activity fit. RAKEZ: Visa allocation is tied to your workspace, not bought freely. JAFZA: JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. 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 JAFZA?
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.