By: @horizonlight / January 23, 2024

Scores of large global and multinational companies, including many Fortune 500 entities, have established their offices in the UAE, propelling the country to the 16th rank globally in the Ease of Doing Business Index. This trend extends to small and medium businesses and independent entrepreneurs as well. The UAE boasts over 50 free zones, each with its own set of rules, regulations, and benefits, making it crucial for businesses to choose the right one. To assist in this decision-making process, let’s delve into the details of some of the cheapest free zones in the UAE.

The appeal of free zones in the UAE lies in various factors that benefit startups and business owners. These include unrestricted capital and profit repatriation, allowing businesses to take their entire profit or capital back to their home country or any preferred destination. Additionally, the recent amendment in regulations allows for 100% foreign ownership within free zones, a significant departure from the previous limit of 49%. Tax exemption is another attractive feature, particularly in Dubai free zones, where businesses are not subjected to personal or corporate income tax. Furthermore, the swift company formation process in these free zones enables obtaining a trade license and setting up a company in as little as five days. Sector-specific advantages are also abundant, with several free zones tailored to specific industries.

The UAE categorizes free zones into various types, such as mainland, offshore, economic, free trade, and media. Generally, economic-free zones are the most cost-effective. To determine the cheapest free zone in the UAE, let’s explore some notable options:

1. DUQE Free Zone:

• Overview: DUQE is among the most cost-effective free zones in the UAE, offering comprehensive benefits across various business sectors.
• Features: Located on the QE2 ship, DUQE boasts a unique location within close proximity to Dubai International Airport and Burj Khalifa. The free zone provides custom pricing packages and a user-friendly support team, ensuring a fast and convenient setup process.
• Pricing: DUQE offers an interactive cost calculator, allowing businesses to estimate costs based on various parameters. The trade license and business activities can commence at DUQE starting from AED 12,500 (USD 3,400).

1. Ajman Free Zone:

• Overview: Situated near Ajman port and major airports, Ajman Free Zone accommodates various business activities, including project management, services, consultations, and industrial enterprises.
• Features: Ajman Free Zone provides convenient business services within close proximity, dedicated customer care, excellent infrastructure, and advanced air quality monitoring systems.
• Pricing: Business formation costs at Ajman Free Zone start from AED 11,000 (USD 3,000), depending on the business license type and operations.

1. Hamriyah Free Zone:

• Overview: Established in 1995, Hamriyah is one of the oldest and most economical free zones in the UAE, covering a vast business area with over 6,500 investors from 163 countries.
• Features: Hamriyah offers fast service with same-day business registration, versatile facilities including office spaces, warehouses, and land options, small office spaces for budget-friendly solutions, industrial electricity connections, and 24/7 security.
• Pricing: The cost of setting up a business at Hamriyah Free Zone starts from AED 9,000 (USD 2,500), depending on the business type and required facilities.

1. RAKEZ – Ras Al Khaimah Economic Zone:

• Overview: RAKEZ is a versatile and affordable free zone in the UAE, hosting over 50 business sectors within a strong community. It includes two business zones, two industrial zones, and one academic zone.
• Features: RAKEZ offers tailored packages, strong banking partnerships for account opening services, a team of professional advisers, one-stop services, and a mobile app for convenient access to resources.
• Pricing: Business registration at RAKEZ starts from AED 11,200 (USD 3,050), inclusive of residence visa fees, with various facilities such as flexi workspaces, offices, warehouses, and land options.

1. SAIF – Sharjah Airport International Free Zone:

• Overview: Positioned strategically near Port Khor Fakkan and Port Khalid, SAIF is one of the most affordable free zones in the UAE, ensuring easy setup within one hour.
• Features: SAIF provides instant customer support, versatile office spaces including offices, warehouses, land, and jewelry manufacturing plants, and comprehensive services under one roof.
• Pricing: The cost of company formation at SAIF Free Zone starts from AED 9,000 (USD 2,450), depending on the chosen license and business type.

1. Dubai Internet City (DIC):

• Overview: Specializing in infotech businesses, DIC is the cheapest free zone in the UAE for IT professionals and freelancers. It fosters a community of IT professionals for consistent growth.
• Features: DIC has strong partnerships with tech giants like IBM, Microsoft, and CISCO, offers various commercial spaces, hosts international IT events, and provides a freelancer license through the GoFreelance program.
• Pricing: DIC offers affordable packages for tech professionals, with the total cost of obtaining a freelancer trade license starting from AED 7,500 (USD 2,040).

In summary, UAE free zones provide an excellent environment for businesses seeking foreign ownership, easy company formation, and tax exemption. Among the cheapest options are DUQE, Ajman Free Zone, Hamriyah Free Zone, RAKEZ, SAIF, and DIC, allowing businesses to commence activities with an investment of less than AED 10,000 (USD 2,700).