Key Highlights

• Sharjah Media City (Shams) offers the lowest UAE free zone entry cost at AED 5,750, while SPC starts from AED 6,875.
• Dubai’s new “One Freezone Passport,” launched in July 2025, allows single-license operations across multiple free zones. 
• RAKEZ provides competitive manufacturing and trading setups with packages starting from AED 11,440, offering strategic port access benefits.
• Additional costs, including visa processing and establishment fees, can significantly impact initial budgets beyond base license costs. 

The UAE’s free zone ecosystem has evolved dramatically in 2025, offering entrepreneurs more cost-effective options than ever before. 

With rising post-COVID entrepreneurship and enhanced business-friendly policies, finding the most affordable free zone has become crucial for budget-conscious business owners.

This comprehensive guide examines the top 5 most affordable UAE free zones based on official 2025 pricing, helping you make an informed decision for your business setup. Keep reading to learn more. 

Understanding UAE Free Zones in 2025

Free zones are special economic areas offering 100% foreign ownership and significant tax benefits. According to the UAE Ministry of Economy, there are now over 40 multidisciplinary free zones across all seven emirates, each providing unique advantages for different business sectors.

Regulatory Updates: Game-Changing Developments

1. The “One Freezone Passport” Initiative

Dubai launched a revolutionary “One Freezone Passport” initiative in July 2025. This groundbreaking system allows companies licensed in one free zone to expand operations into other free zones without additional licenses, eliminating the need for multiple permits and significantly reducing costs.

Key Benefits:

•       Single license for multiple free zone operations
•       Reduced administrative barriers
•       Faster business expansion across Dubai’s free zones
•       Cost savings on duplicate licensing fees

Note: The passport has limitations—businesses cannot hire or transfer staff across zones, certain retail sectors are excluded, and virtual offices aren’t permitted.

2. Enhanced Cross-Zone Operations

New regulations now allow Dubai free zone companies to operate on the mainland after obtaining permits from the Department of Economic Development (DET). This flexibility significantly expands business opportunities without requiring separate mainland entity formation.

Key Cost Factors That Determine Affordability

When evaluating free zone costs, consider these essential factors:

License Type and Business Activities

•       Professional License: For consultancy and service-based businesses
•       Commercial License: For trading activities
•       Industrial License: For manufacturing and production
•       General Trading License: For diverse trading operations

Visa Requirements and Quotas

•       Zero visa packages: Most economical for existing UAE residents
•       Single visa packages: Suitable for solo entrepreneurs
•       Multiple visa packages: For businesses requiring staff

Office Space Options

•       Virtual offices: Lowest cost option
•       Flexi-desks: Shared workspace solutions
•       Dedicated offices: Higher cost but more privacy
•       Warehouse facilities: For businesses requiring storage

Top 5 Most Affordable UAE Free Zones

1. Sharjah Publishing City (SPC) Free Zone – Starting AED 5,750

Industry Focus: E-commerce, publishing, media, creative services, consultancy

Why It’s the Most Affordable:

•       Lowest entry cost in the UAE at AED 5,750
•       Over 1,500 business activities permitted
•       No mandatory physical office requirement
•       Quick 7-day setup process including visa stamping
•       Up to 10-year trade license options

Package Breakdown:

•       Zero visa license: AED 5,750
•       One visa package: AED 9,000-11,500
•       Establishment card: AED 2,000 (first year)

2. Ras Al Khaimah Economic Zone (RAKEZ)—Starting at AED 6,000

Industry Focus: Manufacturing, trading, services, industrial operations

Cost-Effective Features:

•       Over 4,000 authorized business activities
•       Multiple industrial zones available
•       Competitive warehouse rates starting from AED 6,000
•       Strategic location with port access

Package Options:

•       Zero visa trading package: AED 6,000
•       One-visa professional package: AED 13,470
•       Three-year packages available with discounts

3. International Free Zone Authority (IFZA)—Starting at AED 12,900

Industry Focus: Consultancy, trading, IT services, professional services

Dubai Advantage:

•       Located in Dubai Silicon Oasis
•       Strong Dubai branding benefits
•       Remote setup capabilities
•       3-5 business day incorporation

Pricing Structure:

•       Zero visa license: AED 12,900
•       One visa package: AED 14,900
•       Three-year packages: AED 43,470

4. Ajman Free Zone (AFZ)—Starting at AED 8,000

Industry Focus: Trading, e-commerce, consultancy, general business services

Affordability Benefits:

•       Competitive pricing structure starting at AED 8,000
•       Strategic location near Ajman Port
•       Flexible lease options
•       Quick setup process

5. Dubai South Free Zone – Starting AED 12,500

Industry Focus: E-commerce, logistics, aviation, technology

Strategic Advantages:

•       Proximity to Al Maktoum International Airport
•       Advanced logistics infrastructure
•       Designated zone status (Corporate tax exemptions)
•       Support for high-risk nationalities

Package Options:

•       Zero visa allocation: AED 12,500
•       One visa allocation: AED 15,950
•       Additional visas: AED 1,000 each

Detailed Cost Comparison

Hidden Costs to Consider

Mandatory Additional Costs

•       Establishment Card: AED 1,000-2,200 annually
•       Residence Visa Processing: AED 3,500-4,750 per person
•       Medical Examination: AED 450-850 per person
•       Emirates ID: AED 390 per application

Optional but Common Expenses

•       Bank account opening assistance: AED 2,000-5,000
•       Document attestation: AED 500-1,500
•       PRO services: AED 3,000-8,000 annually
•       Accounting and bookkeeping: AED 6,000-15,000 annually

Important Note: All pricing information is subject to change and may vary based on specific business requirements. Always verify current pricing with relevant free zone authorities before making final decisions.

Also Read: Choose the Right Free Zone: IFZA vs Meydan vs RAKEZ

Industry-Specific Recommendations

1. For Media and Creative Businesses

Best Choice: SPC Free Zone—offers the lowest cost entry point with industry-specific focus and an extensive activity list for creative professionals.

2. For Trading Companies

Best Choice: RAKEZ or Ajman Free Zone—provide competitive trading license costs with port access benefits and warehouse facilities.

3. For Professional Consultants

Best Choice: IFZA or SPC Free Zone—offer professional service focus with Dubai/Sharjah branding benefits and virtual office options.

4. For E-commerce Businesses

Best Choice: SPC Free Zone or Dubai South—provide cost-effective packages with logistics advantages and a digital business focus.

Step-by-Step Setup Process

Phase 1: Pre-Planning (Week 1)

1. Define your business activities and industry focus
2. Research applicable free zones based on your sector
3. Prepare required documents (passport copies, business plan, photos)
4. Choose your preferred free zone based on cost and benefits

Phase 2: Application and Approval (Week 2-3)

1. Submit initial application with required documents
2. Reserve your company name (provide 2-3 alternatives)
3. Obtain initial approval from free zone authority
4. Finalize office space selection (virtual, flexi-desk, or dedicated)

Phase 3: License Issuance and Setup (Week 3-4)

1. Complete final documentation and pay fees
2. Receive trade license and establishment card
3. Process residence visa applications (if required)
4. Open corporate bank account (with PRO assistance if needed)

Phase 4: Operational Launch (Week 4-5)

1. Complete visa stamping procedures
2. Obtain Emirates ID for visa holders
3. Register for VAT (if revenue exceeds AED 375,000)
4. Begin business operations within your chosen free zone

Common Mistakes to Avoid

1. Focusing Only on Initial Costs

Consider annual renewal fees and ongoing compliance costs in your calculations.

2. Ignoring Activity Restrictions

Ensure your chosen free zone permits all your intended business activities.

3. Underestimating Visa Requirements

Plan for future growth and potential visa needs from the start.

4. Overlooking Banking Requirements

Some banks have minimum balance requirements—factor this into your budget.

5. Skipping Professional Advice

Engage qualified business setup consultants to avoid costly mistakes.

Government Support and Resources

1. Official UAE Government Resources

The UAE Ministry of Economy and UAE Official Portal provide comprehensive business setup information and free zone regulations.

2. Free Zone Authority Contacts

Each free zone maintains dedicated customer service centers for inquiries and support.

Also Read: Key Benefits of DWTC Free Zone Business Setup: Complete Guide 2025

Frequently Asked Questions

Q: Which is truly the cheapest free zone in the UAE in 2025?

A: Sharjah Publishing City (SPC) offers the lowest entry point at AED 5,750 for a zero-visa license.

Q: How long does the setup process typically take?

A: Setup times vary: SPC takes 7 days, IFZA takes 3-5 days, while Dubai South may take up to 3 weeks.

Q: Can I run my business completely online from a free zone?

A: Yes, many free zones offer virtual office options for consultancy and service-based businesses.

Q: What’s the difference between mainland and free zone setup costs?

A: Free zones typically offer lower initial costs, 100% foreign ownership, and simplified procedures compared to mainland setups.

Q: Are there any hidden costs I should know about?

A: Common additional costs include establishment cards, visa processing, medical exams, and Emirates ID. Always request a detailed cost breakdown.

Q: Do I need to visit the UAE to set up my company?

A: Many free zones now offer remote setup options through Power of Attorney. However, you’ll need to visit for visa stamping if you require UAE residence visas.

Q: Which free zone is best for e-commerce businesses?

A: SPC Free Zone and Dubai South are excellent for e-commerce, offering cost-effective packages and a digital business focus.

Q: How do renewal costs compare across different free zones?

A: Renewal costs are generally 10-20% of initial setup costs. SPC and RAKEZ typically offer the most competitive renewal rates.

Q: Can I change free zones later if needed?

A: Yes, but it requires closing your current entity and starting fresh in the new zone. The new “One Freezone Passport” in Dubai offers more flexibility for expansion.

Next Steps 

Sharjah Publishing City (SPC) emerges as the clear winner for affordability at just AED 5,750, while RAKEZ and IFZA provide excellent value for specific business types. 

The introduction of the “One Freezone Passport” and enhanced cross-zone operational flexibility in 2025 makes the UAE’s free zone ecosystem even more attractive for entrepreneurs seeking cost-effective business setup options.

Remember to consider your industry requirements, long-term growth plans, and operational needs when selecting the most suitable free zone for your business.

Disclaimer: All pricing information is based on 2025 market research and official sources. Costs may vary based on specific business requirements and are subject to change. Always verify current pricing with relevant free zone authorities before making final decisions.

Book your Free Consultation call today with the expert of JSB Incorporation to learn more about the most affordable freezone in the UAE.