Last updated: 15 June 2026
The UAE has more than 40 free zones, and founders setting up in 2026 quickly hit the same question: which one? IFZA, RAKEZ, SHAMS and Meydan come up most often — but they are built for different businesses. Choosing on headline price alone is how founders end up paying to fix a mismatch. Here is how to compare them on what matters.
The four most-asked-about zones
- IFZA (Dubai) — fast, package-based setup; strong for service, consultancy, trading and holding companies that want a Dubai address.
- RAKEZ (Ras Al Khaimah) — broad activity list including industrial, manufacturing and warehousing, with access to physical space at lower cost.
- SHAMS (Sharjah) — keenly priced, popular with media, creative and small service businesses.
- Meydan (Dubai) — quick, largely virtual setup with a prestigious Dubai address, suited to lean service companies.
Cost
Headline prices are close enough that cost is rarely the deciding factor. RAKEZ usually wins for physical and industrial space; SHAMS and Meydan compete hard on entry price for desk-based businesses; IFZA sits in between with flexible packages. Confirm current package pricing with each zone, as they revise frequently. For a fuller cost view, see our Dubai free-zone setup cost breakdown.
Activities and location
This is the real differentiator. If you make, store or move goods, RAKEZ’s industrial activities and warehousing win. If you sell services or hold assets, IFZA, SHAMS or Meydan are lighter and faster. Location matters too: a Dubai address (IFZA, Meydan) carries client perception; RAK and Sharjah trade some prestige for lower cost. See licence options in our IFZA licence types guide.
Free zone vs mainland
All four are free zones, so the same trade-off applies versus a mainland licence — full foreign ownership and tax efficiency, but limits on trading directly in the local UAE market. Our free zone vs mainland comparison covers that choice.
Tax — the same for all
Every UAE free zone sits under the same regime: 9% corporate tax above AED 375,000, with 0% on qualifying free-zone income where the conditions are met. So tax is not the differentiator — business fit is.
Frequently asked questions
Which UAE free zone is cheapest?
SHAMS and Meydan often have the lowest entry prices for desk-based businesses, but prices are close across zones and change frequently — fit matters more than a small price gap.
Which free zone is best for trading or consultancy?
IFZA is a strong all-rounder for service, consultancy, trading and holding companies, with a Dubai address and fast setup.
Which is best for manufacturing or warehousing?
RAKEZ — it offers industrial activities and access to land and warehouse units at lower cost.
Do different free zones have different tax treatment?
No. All UAE free zones fall under 9% corporate tax above AED 375,000, with 0% on qualifying free-zone income where conditions are met.
The bottom line
Pick the zone by business type and location, not by a small price difference. Talk to our UAE team and we will match the zone to your activity and visa needs.
General information, not tax or legal advice. Free-zone rules and fees change; confirm with the relevant authority or a qualified adviser. See our Editorial Policy.
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This article is for general informational purposes only and is not legal, tax, or financial advice. Consult a qualified professional before acting. Editorial Policy.
