RAKEZ vs UAQ FTZ: 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 UAQ FTZ (from about AED 5,500) are both UAE free zones — UAQ FTZ 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. 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.
RAKEZ 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 | RAKEZ | UAQ FTZ |
|---|---|---|
| Licence from | AED 6,000 | AED 5,500 |
| Emirate | Ras Al Khaimah | Umm Al Quwain |
| Location | Al Hamra Industrial Zone & Al Nakheel, Ras Al Khaimah | Umm Al Quwain, on the E311 (~30 min from Dubai) |
| Visas | Visa allocation is tied to your workspace, not bought freely. | 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 | RAKEZ maintains a comprehensive activity list across manufacturing, trading, services, media, education, IT, logistics and more. | 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 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 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
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
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
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
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, RAKEZ or UAQ FTZ?+
RAKEZ licences start from about AED 6,000 (zero-visa licence, flexi-desk, approx — visa packages cost more). 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 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 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 RAKEZ and UAQ FTZ?+
Compare licence cost, visa allocation and activity fit. RAKEZ: Visa allocation is tied to your workspace, not bought freely. 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 RAKEZ 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.