RAKEZ vs Shams: 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 Shams (from about AED 5,750) are both UAE free zones — Shams 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. Shams best suits: Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
RAKEZ and Shams 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 | Shams |
|---|---|---|
| Licence from | AED 6,000 | AED 5,750 |
| Emirate | Ras Al Khaimah | Sharjah |
| Location | Al Hamra Industrial Zone & Al Nakheel, Ras Al Khaimah | Sharjah Media City, Sharjah (approx. 15 minutes from Dubai) |
| Visas | Visa allocation is tied to your workspace, not bought freely. | Shams uses a flexible visa system rather than a fixed low cap. |
| Activities | RAKEZ maintains a comprehensive activity list across manufacturing, trading, services, media, education, IT, logistics and more. | You can combine up to 5 business activities under a single Shams licence, and they can span different sectors — for example media, e-commerce, IT, consultancy and general services. |
Lower entry price: Shams.
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 Shams if
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
Think twice if
Founders who need a Dubai address for prestige or clients, businesses that must sell goods or services directly to the UAE mainland without a distributor, or activities requiring heavy regulatory approval (financial services, healthcare). Banks can also be slightly more cautious with cheaper Sharjah zones.
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
Shams
from AED 5,750
Trade licence (1 year, zero visa)
Cheapest media/e-commerce package; flexi-desk usually included.
AED 5,750 from
Licence + flexi-desk + 1 visa package
Typical working setup for a single founder; bundled price.
AED 11,000–13,500 from
Establishment / immigration card
Required once before issuing any residence visa.
AED 1,500–1,575
E-channel immigration registration
Often includes a refundable deposit (approx. AED 5,000).
AED 2,700–7,150
Residence visa (per person, 2 years)
Investor visa lower; employee visa higher; excludes medical/ID.
AED 2,200–3,700
Medical test + Emirates ID (per visa)
Medical approx. AED 365 + Emirates ID approx. AED 330–371.
AED 700–900
Flexi-desk (if charged separately / annual)
Usually bundled; standalone price in some packages.
AED 1,600–3,000
Corporate tax & VAT registration
FTA registration is free; 9% corporate tax applies above AED 375k profit; VAT only if turnover exceeds AED 375k.
Government: AED 0
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
Shams
- Very low entry cost — among the cheapest credible UAE free zone licences.
- Up to 5 activities and 100% foreign ownership under one licence.
- Flexible visa allocation that scales with your office solution.
- Fast, largely remote incorporation — often 1–2 working days.
- Flexi-desk address that several UAE banks accept for account opening.
- Close to Dubai (about 15 minutes) while paying Sharjah-level costs.
- It's a Sharjah address, not Dubai — some clients and partners still prefer a Dubai licence.
- As a free zone, you cannot sell directly to the UAE mainland without a distributor or a separate mainland licence.
- Cheaper zones can face more bank scrutiny; account opening may take longer or need extra documents.
- Advertised "from" prices exclude visa, e-channel deposit, medical and Emirates ID — real total is higher.
- Shams no longer issues a separate freelancer permit — freelancers now use a standard company licence.
Frequently asked questions
Which is cheaper, RAKEZ or Shams?+
RAKEZ licences start from about AED 6,000 (zero-visa licence, flexi-desk, approx — visa packages cost more). Shams starts from about AED 5,750 (licence only, 0 visa, approx. — add flexi-desk and visa for a working setup). Shams 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 Shams best for?+
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
How do I decide between RAKEZ and Shams?+
Compare licence cost, visa allocation and activity fit. RAKEZ: Visa allocation is tied to your workspace, not bought freely. Shams: Shams uses a flexible visa system rather than a fixed low cap. 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 Shams?
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.