The UAE offers over 40 free zones with benefits like 100% foreign ownership, 0% corporate tax, and quick registration - ideal for startups with budgets of up to AED 36,700 (~$10,000). These zones provide full profit repatriation, no local sponsor requirements, and affordable setup costs starting from AED 5,500. Here's a quick breakdown:
Key Tip: Match your free zone choice to your industry, team size, and growth plans. For trading, e-commerce, or budget-conscious startups, zones like Ajman and UAQ FTZ stand out. For media, tech, or Dubai-based operations, consider Shams or IFZA. Focus on balancing costs, visa flexibility, and workspace needs for long-term success.
RAKEZ provides budget-friendly packages designed for startups in need of operational space. With its flexible workspace options, businesses can easily scale as they grow. Housing over 30,000 companies across more than 50 industries, RAKEZ fosters a diverse and supportive ecosystem for entrepreneurs.
RAKEZ offers competitive business licence packages starting at AED 6,000, making it an attractive choice for entrepreneurs working with limited budgets. Depending on your specific needs and chosen office solution, the total first-year setup costs range between AED 6,000 and AED 20,000 [4].
For perspective, RAKEZ's AED 6,000 package is positioned between Ajman's AED 5,555 and IFZA's AED 12,900 rates. This pricing structure is complemented by flexible visa and office options, ensuring a tailored fit for various business requirements.
RAKEZ provides visa allocations ranging from 1 to 6 visas per package. However, the AED 6,000 licence does not include visa fees, allowing entrepreneurs to add only what they need. This flexibility is ideal for solo business owners and small teams, enabling them to adjust their visa needs as their operations expand.
In addition to visa options, RAKEZ offers various workspace solutions to accommodate different business models.
RAKEZ caters to diverse operational needs with its range of workspace options, including flexi-desks, standard offices, executive offices, and warehouses. Flexi-desks are a cost-effective choice for freelancers and startups in their early stages, while warehouses provide the perfect solution for e-commerce and trading businesses requiring storage facilities.
"RAKEZ aims to become a leading global investment destination and is unique in its efforts to offer top-tier infrastructure, affordable business setup options, and customised solutions to its clients." - Dubiz [5]
In line with its affordable business model, RAKEZ supports industries such as manufacturing, logistics, and trading by offering specialised facilities and incentives. Thanks to its strategic location and government-backed support for industrial operations, the zone provides everything from operational spaces to manufacturing and storage facilities, making it a one-stop solution for businesses with diverse needs [4].
IFZA combines a prestigious Dubai address with competitive pricing, making it an appealing choice for startups. Situated in Dubai Silicon Oasis, it offers access to a dynamic business ecosystem that supports over 800 business activities. This makes it a versatile option for industries like consultancy, media, and technology [1]. While its rates are on the higher side, IFZA provides excellent value for startups aiming to establish a presence in regional or international markets.
Business licence packages at IFZA start at AED 12,900, which places it at a premium compared to zones like RAKEZ or Ajman. However, this pricing reflects the added benefit of a Dubai address and a range of comprehensive services [1]. For those looking to save on initial expenses, DIY formation options can bring setup costs down to approximately AED 10,000 [7][5].
The higher price point aligns with IFZA's premium positioning among Dubai's free zones. Its packages often include essential business setup solutions, which many entrepreneurs find valuable for leveraging Dubai's global appeal.
"IFZA has become one of the most popular zones, whether for small businesses or well-established companies." - Now Consultant [1]
Once the licence is secured, startups can customise their visa allocations based on their team size and operational needs.
IFZA provides up to six visas per licence, with options starting from zero visas. This flexibility allows solo entrepreneurs or small teams to defer visa-related expenses until they are ready to expand.
This tiered approach is particularly beneficial for startups. It enables them to manage their cash flow effectively while maintaining the ability to scale their team as their business grows. Entrepreneurs can start lean and gradually increase their visa allocation in line with their operational requirements.
IFZA offers a range of workspace options, including virtual offices and co-working spaces. Businesses can operate without a physical office initially, making it an excellent choice for cost-conscious entrepreneurs.
Virtual office packages provide a professional Dubai address without the expense of maintaining a physical office. As businesses expand, they can transition seamlessly to physical office spaces within the same ecosystem, ensuring continuity and convenience.
"IFZA has quickly gained popularity due to its low-cost licensing options and wide variety of business activities." - Emifast [3]
These flexible workspace options align with IFZA's mission to support startups at every stage of their growth journey.
Being located in Dubai Silicon Oasis gives IFZA-based businesses access to a thriving community with ample networking and collaboration opportunities.
"IFZA provides a strong support ecosystem for startups, allowing them to establish their business in Dubai with minimal initial investment." - GCM Company Formation [6]
With licensing options covering over 800 business activities, IFZA caters to entrepreneurs from diverse sectors, whether they are in consultancy or cutting-edge technology. Its combination of versatility, a prestigious Dubai address, and comprehensive support services makes it a standout choice for startups looking to make their mark in regional or global markets.
Ajman Free Zone stands out as one of the most affordable choices for early-stage startups, with packages starting at just AED 5,499. Its prime location near a seaport offers logistical advantages, particularly for businesses involved in import-export and e-commerce. This free zone has become a favourite for budget-conscious entrepreneurs, especially in the trading and online retail sectors.
Ajman Free Zone's entry-level package costs AED 5,499 and includes a business licence along with virtual office space [2].
"Ajman Free Zone offers an affordable setup for startups, with packages starting at AED 5,499, making it an attractive option for entrepreneurs on a budget." - Alan Wells, Business Consultant [2]
For businesses requiring employee visas, the cost per visa averages around AED 3,600 [2]. Additionally, the free zone provides the convenience of flexible payment plans, allowing businesses to pay in instalments instead of a lump sum.
Ajman Free Zone caters to entrepreneurs with flexible visa arrangements. Solo business owners can kickstart operations without the immediate need for visas, adding them later as their team grows. This flexibility makes it easier for startups to scale at their own pace. Moreover, the free zone ensures smooth processes for setting up office spaces.
The basic AED 5,499 package includes a virtual office, offering startups a professional business address without the expense of a physical location. This option is perfect for service providers, consultants, and e-commerce businesses that don’t require a traditional office setup in the early stages.
Ajman Free Zone is designed to support startups with efficient and straightforward registration processes. Digital tools further streamline the experience, helping businesses get up and running quickly.
"Ajman Free Zone provides a supportive environment for startups, with affordable packages and a range of services that cater to the needs of new businesses." - Ajman Free Zone Authority [9]
Entrepreneurs also benefit from 100% foreign ownership, granting them full control of their ventures. By October 2025, Ajman Free Zone had gained traction among startups due to its competitive pricing and simplified processes, attracting a wide variety of businesses [8]. This combination of affordability and support makes Ajman Free Zone a go-to choice for startups looking to maximise their resources.
Sharjah Media City, or Shams, is a hub designed for creative minds, including entrepreneurs, content creators, marketers, and tech-focused startups. It provides an affordable entry point for media businesses looking to establish themselves in the UAE, contributing to the country's growing startup ecosystem.
Shams offers budget-friendly licence packages, particularly appealing to freelancers. These packages often exclude visa services, keeping the initial costs low. This setup is ideal for UAE residents, current business owners, or new entrepreneurs who already have residency.
Shams provides business setup packages that include up to six visas[2]. However, visa processing is charged separately from the basic licence cost[2][1]. This flexibility makes it a practical choice for startups in their early stages or for entrepreneurs who don’t require a full team right away.
For freelancers and remote startups, Shams offers cost-effective virtual office options[2]. These allow businesses to establish a professional presence in a recognised media hub without the expense of a physical office.
Shams is dedicated to supporting creative entrepreneurs, SMEs, and freelancers through a well-structured ecosystem tailored for media and tech businesses[5]. By 2025, it is expected to remain a top choice for freelancers and remote startups, thanks to its targeted focus on media and technology[2][5].
"Sharjah Media City (Shams) supports creative entrepreneurs, SMEs, startups, and freelancers with a strong and supportive ecosystem." - Sharjah Media City Authority[5]
Next, we’ll take a closer look at DMCC’s freelance and AstroLabs packages to compare more startup-friendly options in the UAE.
The DMCC Freelance and AstroLabs packages offer an affordable way for startups to establish themselves, with the added benefit of dual licence options that allow for mainland expansion [9].
DMCC goes beyond just providing a workspace - it creates an environment where startups can thrive. From networking events and meetups to mentorship opportunities, the free zone actively promotes connections and growth [10]. Additionally, their extensive business support services are designed to help startups navigate operational hurdles, reducing the need for costly external consultants [10]. This comprehensive approach makes DMCC a standout choice for startups looking to build a strong foundation before exploring the pricing strategies of Umm Al Quwain Free Trade Zone.
Umm Al Quwain Free Trade Zone (UAQ FTZ) stands out as one of the most affordable options for businesses in the UAE. By combining budget-friendly pricing with essential business services, it’s an attractive choice for startups operating on limited budgets. Let’s take a closer look at what makes UAQ FTZ a practical option, starting with the UAQ LYTE package.
The UAQ LYTE package is tailored for startups that require minimal upfront investment. Priced from just AED 5,500[1], this package offers one of the most economical licence options in the UAE, along with some of the lowest renewal fees available[2]. This makes it easier for new businesses to get started without overextending their resources.
UAQ FTZ provides a range of workspace options designed to suit different business needs. These include virtual offices, physical office spaces, and affordable warehouse facilities[2]. For those opting for the UAQ LYTE package, a Smart Desk is included, ensuring a professional workspace that stays within budget[1].
To make the business setup process as smooth as possible, UAQ FTZ offers dedicated support services and streamlined documentation procedures[2]. This efficient approach helps startups focus on growth rather than getting bogged down by administrative hurdles, making it an ideal choice for entrepreneurs looking to launch their ventures without breaking the bank.
When choosing a free zone in the UAE, it’s essential to weigh factors like costs, visa options, workspace flexibility, support services, location, and processing times. Here's a breakdown of the key elements to consider for startups:
Choosing the right free zone for your startup depends on your specific needs and goals. Each free zone we've discussed offers distinct perks tailored to different industries and budgets under AED 10,000.
Tech startups and digital businesses might find IFZA and Sharjah Media City (Shams) ideal. IFZA stands out for its smooth setup processes and competitive pricing, while Shams provides targeted support for media and tech ventures.
Freelancers and solo entrepreneurs can explore DMCC's freelance packages or AstroLabs programmes, which allow operations without a physical office but still offer the prestige of a Dubai address. For those on a tight budget, UAQ FTZ provides an affordable entry point.
Trading and e-commerce startups should consider RAKEZ and Ajman Free Zone. Both offer excellent logistics, strategic locations, and flexible visa options, making them great choices for businesses aiming to scale without breaking the bank.
Budget-conscious entrepreneurs across various sectors will find UAQ FTZ and Ajman Free Zone appealing due to their low setup and renewal costs. However, it’s essential to think beyond the initial savings. The cheapest option may not always align with your industry needs or support long-term growth.
Ultimately, it’s about balancing affordability with scalability. Consider your AED 10,000 budget in the context of your two-to-three-year growth plans. While some zones may cost a bit more upfront, they often provide better support, networking opportunities, and resources for long-term success.
When you're setting up a startup in the UAE with a budget of under AED 10,000, choosing the right free zone is a critical step. Start by looking at the costs involved - this includes registration fees, license charges, and any hidden expenses. Keeping everything within your budget is key.
Next, check if the free zone aligns with your business activities, as some are tailored to specific industries. It's also essential to factor in your visa requirements, such as the number of visas your business will need and the associated costs, which can vary across zones.
To keep expenses low, consider free zones that offer virtual office solutions. These can be a budget-friendly alternative to physical office spaces. Finally, look for free zones that provide support services, such as business consultancy or networking events, which can be valuable for the growth and success of your startup.
Visa options and quotas in the UAE differ based on the free zone you choose. Some free zones cater to startups with flexible visa packages, enabling you to sponsor multiple employees or even family members. Others, however, might have stricter limits in place. What’s helpful is that certain free zones allow you to expand your visa quota as your business grows, making it easier to scale up your operations.
Since visa policies and quotas are subject to change due to regulatory updates, it’s best to reach out directly to the specific free zone authority for the most accurate and current information.
For tech and media startups, Dubai Internet City (DIC) and Dubai Silicon Oasis (DSO) stand out as prime locations in the UAE.
DIC serves as a thriving hub for technology and innovation, offering startups access to accelerators, venture capital networks, and licences for activities like software development, artificial intelligence, e-commerce, cloud computing, and blockchain. Its ecosystem is built to encourage collaboration and help tech-driven businesses grow.
DSO, on the other hand, is equipped with state-of-the-art facilities, including high-tech labs and specialised zones dedicated to robotics, engineering, and other advanced technologies. It’s particularly suited for startups focusing on research and development, providing an environment that supports forward-thinking projects.
Both free zones make it easier for startups to get started with streamlined registration processes, affordable setup options, and a vibrant entrepreneurial community. These features make them great choices for startups operating with limited budgets but aiming to establish a strong presence in the UAE.
