UAE free zones compared: what they are and how to choose one
What a UAE free zone company can and cannot do, the zones and their authorities as officially stated, the licence types and legal forms, and a checklist for comparing zones on activities, office options, visa allocation, banking and mainland access.
The short answer
A free zone is a designated area whose own authority licenses companies under its own rules. The Ministry of Economy and Tourism counts more than 40 of them and lists 100% foreign ownership, full repatriation of capital and profits and customs exemptions on goods kept inside the zone as the standard features. The limit is market access: the UAE Government portal states that a free zone company must sell into the mainland through a licensed distributor or a mainland branch or company. Choosing a zone comes down to its activity list, office options, visa allocation, banking access and, for Dubai, the branch route under Resolution 11/2025.
Key facts
- Number of zones
- More than 40 (Ministry of Economy and Tourism)
- Governing rules
- Each zone's own authority; the Companies Law confirms free zone companies have UAE nationality
- Ownership and repatriation
- 100% foreign ownership; 100% repatriation of capital and profits (Ministry of Economy and Tourism)
- Customs
- 0% duty on goods imported into the zone; duty applies when goods move to the mainland (u.ae)
- Mainland sales
- Through a licensed mainland distributor, a mainland branch or company, or in Dubai a DET branch licence or permit
- Office and visas
- Office space mandatory; visas issued depending on office size (Ministry of Economy and Tourism)
- Corporate tax
- Free zone companies are taxable persons; 0% only on qualifying income of a Qualifying Free Zone Person
What a free zone company is
A free zone company is incorporated and licensed by the authority of a designated zone rather than by an emirate's economic department. The Ministry of Economy and Tourism states that "entities established in free zones shall be subject to the laws and regulations governing the respective free zone authorities", and lists the legal forms as Free Zone Limited Liability Company, Free Zone Company (FZC, sometimes written FZCO) and Free Zone Establishment (FZE). JAFZA describes an FZE as "essentially a Limited Liability Company within the free zone, where there is only a single shareholder". Foreign companies can also register a branch in most zones.
The Companies Law puts free zone companies inside the UAE legal system: Article 9(3) says every company established in the UAE, "including free zones and financial free zones", has UAE nationality. Two zones are different in kind. ADGM in Abu Dhabi and DIFC in Dubai are financial free zones established under Federal Law No. 8 of 2004 with their own courts and regulators; they register non-financial companies too, but they should not be compared with commercial free zones on the same terms.
What the official pages say you get
- 100% ownership of the project and 100% repatriation of capital and profits (Ministry of Economy and Tourism).
- 100% import and export tax exemptions inside the zone; the UAE Government portal explains this as 0% customs duty on goods imported into the free zone, with duty applying only when goods move into the mainland market.
- A choice of licence types: commercial, consultancy or service, industrial, educational, media, e-commerce, offshore, freelancer, warehouse, innovation and manufacturing, among others (Ministry of Economy and Tourism).
- Office space that is mandatory but, in many zones, available as a shared or flexi desk, with residence visas issued according to the size of the workplace.
- Each zone's own registrar and rules; the Ministry of Economy and Tourism publishes a directory of company registrars in free zones.
The limit: selling into the mainland
The UAE Government portal is direct on this point: "To sell goods or services locally, a free zone company must either work through a licensed mainland distributor or establish a mainland branch or company. Direct sales in the mainland are generally not permitted unless the company obtains the required mainland licences or approvals."
Dubai has formalised a route. Executive Council Resolution 11/2025 lets a free zone establishment obtain a DET branch licence (AED 10,000 per year to issue or renew) or a temporary permit of up to six months (AED 5,000), keeping separate financial records for the mainland activity and using its existing free zone staff. Abu Dhabi offers a dual licence through ADDED for free zone establishments to operate outside free zone areas. If most of your customers are in the UAE, compare these routes against a plain mainland licence before choosing a zone; the mainland versus free zone page sets them side by side.
Zones and what their authorities state
The table lists the zones this platform covers and what each authority says about itself on its own website. We do not reproduce package prices or visa counts, because those change and are not rules.
| Zone | Emirate | Authority statement (own website) | Focus as stated |
|---|---|---|---|
| IFZA (International Free Zone Authority) | Dubai | Operates a business-to-business model through Professional Partners; located in IFZA Business Park, Dubai Silicon Oasis / Dubai Digital Park | Professional, commercial and general trading licences; branches; FZCO companies. See the IFZA page. |
| DMCC (Dubai Multi Commodities Centre) | Dubai (Jumeirah Lakes Towers) | "A geographically designated and defined area" and, in its own words, a qualified free zone for the Corporate Tax Law; 26,000+ member companies; 1,000+ activities; digital setup | Commodities and general trading and services. See the DMCC page. |
| JAFZA (Jebel Ali Free Zone) | Dubai (Jebel Ali) | "The flagship free zone of DP World"; FZE as a single-shareholder LLC; runs an offshore registry through registered agents | Logistics, industrial and trading; offshore companies. |
| Meydan Free Zone | Dubai | 100% digital setup, flexi-desk, up to three activity groups, visas added when needed (authority's own wording) | Service and trading companies. See the Meydan page. |
| Dubai South | Dubai (Al Maktoum airport district) | Business setup, visas and licensing services (page content thin on the day read) | Aviation and logistics district. |
| RAKEZ (Ras Al Khaimah Economic Zone) | Ras Al Khaimah | Established by the Government of Ras Al Khaimah; licenses both free zone and non-free zone entities | Industrial, trading and service companies. See the RAKEZ page. |
| SPC Free Zone (Sharjah Publishing City) | Sharjah | 100% foreign ownership (authority site) | Publishing, media and general business. |
| Shams (Sharjah Media City) | Sharjah | Media free zone with freelance packages | Media and creative freelancers. |
| Ajman Free Zone | Ajman | 100% company ownership; licence and registration kit followed by the visa process | General trading, services and industrial. |
| ADGM (Abu Dhabi Global Market) | Abu Dhabi (Al Maryah and Al Reem Islands) | Financial free zone under federal legislation applying English common law; Registration Authority licenses entities | Financial and professional services; holding structures. |
| DIFC (Dubai International Financial Centre) | Dubai | Financial free zone under Federal Decree 35/2004 and Federal Law 8/2004; DIFC Authority, DFSA and DIFC Courts | Financial services; excluded from Dubai Resolution 11/2025. |
| Abu Dhabi zones listed by ADDED | Abu Dhabi | ADGM, KEZAD, Masdar City, Abu Dhabi Airports Free Zone, twofour54, Industrial City of Abu Dhabi | Industrial, logistics, clean-tech, media and aviation respectively; dual licence available via ADDED. |
How to compare zones: the criteria that matter
| Criterion | What to check | Where the answer lives |
|---|---|---|
| Activity list | Whether your exact activity exists in that zone, under which licence type, and whether it needs a third-party regulator's approval | The zone's published activity list; the regulator named for the activity |
| Office options | Whether a flexi or shared desk satisfies the office requirement for your visa count, and what a dedicated office adds | The zone's office menu; the Ministry rule that visas depend on office size |
| Visa allocation | How many residence visas the package or office carries and how upgrades work | The zone's package terms; numbers are not stated on the federal pages |
| Mainland access | Whether you will need a distributor, a mainland branch, or in Dubai a DET branch licence or permit | u.ae free zone page; Dubai Resolution 11/2025; ADDED dual licence |
| Banking access | Which banks onboard companies from that zone and what substance they expect; some zones state they offer banking support | The zone's own statements (for example IFZA Banking Services, DMCC's digital setup); banks' own policies |
| Corporate tax status | Whether the zone is on the Cabinet and Ministry of Finance lists of qualifying free zones, and whether your income would be qualifying income | FTA Free Zone Persons guide; Cabinet and MOF lists; the zone's own statement (DMCC describes itself as qualified) |
| Establishment card and visa process | How the zone issues the immigration establishment card and handles medical, Emirates ID and residence steps | The zone's guidance; ICP or GDRFA Dubai service cards |
| Legal form | FZE for one shareholder, FZCO or FZ-LLC for several, or a branch of a foreign company | The zone's incorporation rules; Ministry of Economy and Tourism list of forms |
What the official pages do not state
We list these plainly because comparison sites tend to fill them in.
- Licence fees, visa fees and office prices for any zone. Zones publish packages that change; we do not reproduce them as rules.
- Visa-quota formulas. The federal rule is only that visas depend on office size; each zone applies its own table.
- The establishment-card process and cost for free zone companies. The federal pages we read do not describe it.
- Whether a given zone is a qualifying free zone for corporate tax or a designated zone for VAT. DMCC states it is qualified; for other zones, check the Cabinet and Ministry of Finance lists.
- Processing times. No authority page we read states an end-to-end time.
Questions to ask a zone before you commit
- Is my activity on your list, and does it need any external approval?
- Which office option do I need for the number of visas I want in year one, and what does an upgrade involve?
- How do you issue the establishment card, and which authority handles my residence file, ICP or GDRFA Dubai?
- Is the zone on the Ministry of Finance list of qualifying free zones for corporate tax?
- If I later need mainland clients, which route applies: distributor, mainland branch, or the Dubai DET branch licence?
- What are the renewal conditions, and what happens to visas if the licence lapses?
Next step
Shortlist two or three zones whose activity lists carry your activity, then compare them on office, visas and mainland access using the criteria above. The business setup finder does the first cut for you. If you want a consultant to run the comparison, send us the activity, your expected visa count and where your customers are.
Any "starting from" figure is an indicative price for our service and excludes government and third-party fees, which vary by activity, visa count and jurisdiction. Government fees shown are official charges from the cited pages at the review date. Your exact, itemised quote is confirmed free of charge in a consultation, with nothing hidden.
Frequently asked questions
Can a free zone company trade with mainland customers?
Not directly. The UAE Government portal states that a free zone company must work through a licensed mainland distributor or establish a mainland branch or company to sell locally. In Dubai, Executive Council Resolution 11/2025 provides a DET branch licence or temporary permit route.
Is a free zone company exempt from corporate tax?
No. Free zone companies are taxable persons and must register. A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income, subject to substance, audited accounts, transfer pricing and de minimis conditions in the FTA guide. Otherwise standard rates apply.
How many visas can a free zone company get?
The Ministry of Economy and Tourism states that visas are issued depending on the size of the office or workplace. Each zone applies its own allocation to its office packages; the numbers are not stated on federal pages, so ask the zone for its current table.
Do I need to be in the UAE to set up a free zone company?
It depends on the zone. IFZA states that no physical presence is required during incorporation and that the process can be completed remotely; other zones set their own rules. Residence visa issuance still requires entry, a medical test and Emirates ID biometrics.
What is the difference between FZE and FZCO?
An FZE is a free zone establishment with a single shareholder, which JAFZA describes as essentially a single-shareholder LLC. An FZC or FZCO is a free zone company with two or more shareholders. Some zones incorporate all companies as FZCO regardless of shareholder count; IFZA states its companies are incorporated as FZCOs.
Are ADGM and DIFC free zones?
They are financial free zones under Federal Law No. 8 of 2004, with their own courts and regulators and English common law. They register non-financial companies too, but they operate differently from commercial free zones and DIFC financial establishments are excluded from Dubai Resolution 11/2025.
Official sources and review
The rules on this page were checked against the official pages below. We re-check every 60 days and after any announced change.
- Ministry of Economy and TourismEstablishing business in free zonesChecked 4 September 2026
- Ministry of Economy and Tourism40 Free Zones for company incorporationChecked 4 September 2026
- Ministry of Economy and TourismThe advantages of licensing in departments of economic development and in free zonesChecked 4 September 2026
- UAE Government portal (u.ae)Running a business in a free zoneChecked 4 September 2026
- Ministry of Economy and TourismCompany registrars in free zonesChecked 4 September 2026
- Dubai Legislation PortalExecutive Council Resolution No. (11) of 2025 regulating the conduct of free zone establishments' activities in DubaiChecked 4 September 2026
- Abu Dhabi Department of Economic Development (ADDED)Mainland and free zonesChecked 4 September 2026
- Federal Tax Authority (FTA)Free Zone Persons Corporate Tax Guide (CTGFZP1)Checked 4 September 2026
Government fees, thresholds and processing times change without notice. Where an official page does not state a figure, we say so rather than estimate. Nothing here is legal advice or a decision of any UAE authority.
Immigration UAE is a brand of Cosmos Immigration, a private immigration and business-services consultancy. It is not affiliated with the Government of the UAE, ICP, GDRFA, MOHRE or any UAE government authority.
Compare zones for your activity
Send us the activity, your first-year visa count and where your customers are. We will shortlist the zones whose published rules fit and tell you what each will ask for.
No private firm can guarantee the outcome of a UAE visa, residency or licensing application. Decisions rest solely with the relevant UAE authority.