The UAE has one of the best systems for establishing specialized economic zones, known as free zones, that help startups and businesses operate under regional authorities’ regulations.
The UAE has over 40 free zones, each with its own advantages. Generally, free zones offer tax exemptions, foreign ownership, and efficient infrastructure. This guide walks you through the list of the cheapest free zones in the UAE where you can operate with little investment.
What is a Free Zone in the UAE?
A Free Zone in Dubai is a special area for businesses. It offers tax benefits, full foreign ownership, and easy rules to attract investors. Each free zone has its own authority and is made for different industries. Businesses in free zones cannot trade directly in the UAE market without a local agent. These zones are good for exports, online businesses, and services. Dubai created free zones to bring more companies and make the city a global business hub.
Here are the major benefits of setting up your business in a free zone in the UAE:
- 100% foreign ownership
- No personal or corporate taxes
- Full repatriation of profits and capital
- No import or export duties
- Easy business setup process
- Modern infrastructure and facilities
- Fast immigration and visa services
- Access to global markets
- No currency restrictions
- Business-friendly regulations
Top 10 Cheapest Free Zones in the UAE
Here is the list of the 10 most affordable free zones in the UAE where you can start with least investment:
1. Dubai International Financial Centre (DIFC)
DIFC is a leading financial hub. It is offering cost-effective business setup solutions for startups, financial firms, and fintech companies. It is perfect for businesses and service providers in the financial sector.
Key Details
| Feature | Description |
| Founded | 2004 |
| Services | Business licensing, legal services, and fintech support |
| Contact | Visit difc.ae |
| Benefits | Independent legal framework, tax advantages, and access to global markets |
2. Dubai Multi Commodities Centre (DMCC)
DMCC is one of Dubai’s most affordable free zones. It is dedicated to providing business setup solutions for companies in trade, logistics, and technology. This is one of the cheapest free zones in Dubai.
Key Details
| Feature | Description |
| Founded | 2002 |
| Services | Business registration, office spaces, and trade licenses |
| Contact | Call +971 4 424 9600 |
| Benefits | Flexible workspace options, strategic location, and 0% corporate tax |
3. Dubai South Free Zone
Dubai South Free Zone is an emerging business hub. Its major benefits include budget-friendly licensing and workspaces for startups and SMEs. This freezone is especially known for its easy business setup service for businesses in Dubai.
Key Details
| Feature | Description |
| Founded | Key player in logistics and aviation |
| Services | Business licensing, warehouses, and e-commerce support |
| Contact | Email info@dubaisouth.ae |
| Benefits | Low-cost business setup, tax incentives, and fast-tracked registration |
4. Dubai Internet City (DIC)
DIC is a tech-focused free zone that provides affordable setup solutions for IT, software, and digital marketing companies. This economic zone is best for tech entrepreneurs, offering low cost license in Dubai.
Key Details
| Feature | Description |
| Founded | Leading tech ecosystem |
| Services | Office spaces, business registration, and startup accelerator programs |
| Contact | Visit dic.ae |
| Benefits | Competitive pricing, innovation-driven environment, and networking opportunities |
5. Sharjah Media City (Shams)
Shams gives one of the most cost-effective business setups in the UAE. It is majorly catering to creative industries, freelancers, and small businesses. Shams is also known for its cheapest free zone license in the UAE.
Key Details
| Feature | Description |
| Founded | 2017 |
| Services | Trade licenses, media production facilities, and business consultancy |
| Contact | Call +971 6 514 7777 |
| Benefits | Low-cost setup, multiple visa options, and remote registration |
6. Dubai Silicon Oasis (DSO)
DSO is a high-tech free zone in Dubai. This economic zone is known for offering affordable business setup options. Setting up a business here means you get provided office spaces, warehouses, and IT infrastructure for startups and established companies.
Key Details
| Feature | Description |
| Founded | 2005 |
| Services | Business set-up, visas, IT services, and approvals |
| Contact | Visit dsoa.ae |
| Benefits | Fast licensing, dedicated business support, and cost-effective options |
7. Jebel Ali Free Zone (JAFZA)
JAFZA is one of Dubai’s largest free zones. This free zone authority is famous for supporting startups and multinational companies. It offers affordable business solutions and access to international trade networks.
Key Details
| Feature | Description |
| Founded | Recognized globally |
| Services | Easy business formation, office space, warehouses, and logistics solutions |
| Contact | Call +971 4 391 4555 |
| Benefits | Cost-effective setup, international trade access, and flexible business options |
8. Dubai Media City (DMC)
DMC is a hub for entities such as media companies, startups, and freelancers. It provides affordable workspaces, production studios, and business support that is the perfect package for creative industries.
Key Details
| Feature | Description |
| Founded | Media capital of the Arab world |
| Services | Office spaces, warehouses, and freelancer programs |
| Contact | Visit dmc.ae |
| Benefits | Networking, media-focused facilities, and startup-friendly pricing |
9. Dubai Healthcare City (DHCA)
DHCA is a free zone dedicated to healthcare business companies in Dubai. DHCA provides low-cost company formation, a range of business activities and partnerships for medical professionals and researchers.
Key Details
| Feature | Description |
| Founded | Expanding Dubai’s healthcare sector |
| Services | Company registration, research labs, and medical licensing |
| Contact | Call +971 4383 8359 |
| Benefits | Affordable healthcare company setup and international partnerships |
10. Meydan Free Zone
Meydan Free Zone is known for its affordable business setup services. It supports over 2,500 businesses with a range of commercial services including company setup that have its free zone license.
Key Details
| Feature | Description |
| Founded | Featured in GCC News |
| Services | Business licensing, logistics, and digital payment solutions |
| Contact | Email setup@meydanfz.ae |
| Benefits | No personal income tax, easy registration, and business-friendly policies |
How to Start a Business Setup in a Freezone
Here is the step-by-step method you can follow to start your company/business in any free zone in the United Arab Emirates:
-
Pick a Free Zone
Choose a free zone that fits your business needs and budget. -
Decide Your Business Type
Select what kind of business you want to run. -
Get a Trade Name
Pick a unique name and get approval. -
Submit Your Documents
Provide passport copies, business plans, and other required papers. -
Receive Your License
After approval, get your business license. -
Find an Office (If Needed)
Rent a space or use a shared office. -
Apply for Visas
Get visas for yourself and your employees. -
Open a Bank Account
Use your license to set up a business account.
Top 3 Cheapest Free Zones in Dubai
If you are looking solitarily to start in Dubai, you can look forward to choosing one of the following free zones from among the affordable ones in Dubai.
| Free Zone | Setup Cost (AED) | Key Benefits | Best For |
|---|---|---|---|
| IFZA | From 11,500 | No paid-up capital, multiple visa options, easy registration | Startups & SMEs |
| Meydan Free Zone | From 12,500 | 100% foreign ownership, Meydan Pay digital banking, prime Dubai location | E-commerce & Trading |
| Dubai Silicon Oasis (DSO) | From 13,000 | Tech-focused, strong infrastructure, startup support programs | Tech & Innovation Businesses |
Top 3 Affordable Free Zones in Sharjah
If you are looking solitarily to start in Sharjah, you can look forward to choosing one of the following free zones from among the affordable ones in Sharjah.
| Free Zone | Setup Cost (AED) | Key Benefits | Best For |
|---|---|---|---|
| Sharjah Research, Technology & Innovation Park (SRTIP) | From 9,000 | Special funding for women entrepreneurs, R&D facilities | Startups & Researchers |
| Sharjah Media City (SHAMS) | From 11,500 | Multiple activities under one license, media-focused support | Media & Creative Businesses |
| Hamriyah Free Zone | From 12,000 | Low-cost setup, industrial land available, seaport access | Manufacturing & Logistics |
Top 3 Affordable Free Zones in Ras Al Khaimah
If you are looking solitarily to start in Ras Al Khaimah, you can look forward to choosing one of the following free zones from among the affordable ones in Ras Al Khaimah.
| Free Zone | Setup Cost (AED) | Key Benefits | Best For |
|---|---|---|---|
| RAKEZ | From 6,000 | Low-cost packages, fast setup, full foreign ownership | Freelancers & SMEs |
| Ras Al Khaimah Maritime City | From 10,000 | Ideal for marine industries, port access, flexible leasing | Shipping & Maritime Businesses |
| RAK ICC (International Corporate Centre) | From 11,500 | Offshore business registration, privacy protection | Holding Companies & Consultants |
Frequently Asked Questions (FAQs)
1. What factors should I consider before choosing a location for my venture?
Before selecting a free zone for your business, consider the type of activities you plan to operate, licensing fees, visa quotas, and proximity to clients or suppliers. Some areas are better suited for specific industries, such as tech, logistics, or media.
2. How long does the registration process take?
The setup process varies by location, but most areas offer streamlined registration. In many cases, it can take as little as a few days if all documents are in order. Some locations also provide express services for faster approval.
3. Can I get a visa for myself and my employees?
Yes, most locations offer visa options based on the setup packages you choose. The number of visas allowed depends on the size of your office or flexi-desk plan. Additional visas may be available at an extra cost.
4. Are there tax benefits for businesses operating in designated areas?
Yes, many zones provide corporate tax exemptions, full repatriation of profits, and no personal income tax. However, some businesses may still be subject to UAE VAT regulations depending on their activities.
5. Is there any support available for new investors?
Many locations offer a free consultation to help entrepreneurs understand the licensing options, legal requirements, and operational costs (AEDs) before they set up a company. Some also provide mentorship programs, networking events, and startup incentives.
