The UAE offers over 40 Free Economic Zones, each with its own regulations, benefits, and industry focus. Choosing the right zone is a key step in launching a business-it directly impacts setup costs, registration timelines, licensing, taxation, and the ease of opening a corporate bank account.
We’ve compared five of the most popular zones - DMCC, RAKEZ, IFZA, DAFZA, and ADGM-based on five key criteria.
1. DMCC (Dubai Multi Commodities Centre)
Focus: Trade, logistics, gold and precious metals, crypto companies
Office requirement: Mandatory
Reputation: One of the most prestigious zones in Dubai; known for high transparency
Banking: High success rate for account opening; well-regarded by local banks
Cost: Above average, but justified by status and credibility
2. RAKEZ (Ras Al Khaimah Economic Zone)
Focus: Manufacturing, IT, online services, consulting
Office requirement: Mandatory
Reputation: Cost-effective and reliable; suitable for small businesses
Banking: May involve challenges, but manageable with proper support
Cost: One of the most affordable zones in the UAE
3. IFZA (International Free Zone Authority, Dubai)
Focus: E-commerce, consulting, startups
Office requirement: Mandatory
Reputation: Young and rapidly developing, streamlined procedures
Banking: Some difficulties possible, but solvable
Cost: Mid-range, with flexible packages and setup options
1. DMCC (Dubai Multi Commodities Centre)
Focus: Trade, logistics, gold and precious metals, crypto companies
Office requirement: Mandatory
Reputation: One of the most prestigious zones in Dubai; known for high transparency
Banking: High success rate for account opening; well-regarded by local banks
Cost: Above average, but justified by status and credibility
2. RAKEZ (Ras Al Khaimah Economic Zone)
Focus: Manufacturing, IT, online services, consulting
Office requirement: Mandatory
Reputation: Cost-effective and reliable; suitable for small businesses
Banking: May involve challenges, but manageable with proper support
Cost: One of the most affordable zones in the UAE
3. IFZA (International Free Zone Authority, Dubai)
Focus: E-commerce, consulting, startups
Office requirement: Mandatory
Reputation: Young and rapidly developing, streamlined procedures
Banking: Some difficulties possible, but solvable
Cost: Mid-range, with flexible packages and setup options
4. DAFZA (Dubai Airport Free Zone)
Focus: International trade, aviation, high-tech industries
Office requirement: Mandatory
Reputation: High; proximity to Dubai Airport offers strong logistical benefits
Banking: Accounts are generally easy to open with an active office lease
Cost: High, but in line with the premium nature of the zone
5. ADGM (Abu Dhabi Global Market)
Focus: Financial institutions, investment funds, legal and FinTech companies
Office requirement: Mandatory
Reputation: Premium status with international recognition
Banking: Highly respected by banks; strong trust factor
Cost: High; tailored to corporate and financial clients
Focus: International trade, aviation, high-tech industries
Office requirement: Mandatory
Reputation: High; proximity to Dubai Airport offers strong logistical benefits
Banking: Accounts are generally easy to open with an active office lease
Cost: High, but in line with the premium nature of the zone
5. ADGM (Abu Dhabi Global Market)
Focus: Financial institutions, investment funds, legal and FinTech companies
Office requirement: Mandatory
Reputation: Premium status with international recognition
Banking: Highly respected by banks; strong trust factor
Cost: High; tailored to corporate and financial clients
A valid legal address is mandatory for all companies in the UAE, regardless of the zone. However, some Free Zones offer a Flexi Desk option (shared or flexible workspace), which allows startups or lean businesses to register without committing to a full office lease. This setup still satisfies minimum substance requirements (proof of physical presence in the UAE) and is ideal during the early stages of business development.
Choosing the wrong Free Zone can lead to costly delays and complications. A mismatch between business activity and license, lack of physical office space, or misunderstanding of banking compliance can result in rejected license renewals or blocked transactions.
Choosing the wrong Free Zone can lead to costly delays and complications. A mismatch between business activity and license, lack of physical office space, or misunderstanding of banking compliance can result in rejected license renewals or blocked transactions.
Here are five common mistakes entrepreneurs make when choosing a Free Zone:
1. Focusing only on license cost. A cheaper license can result in months of back-and-forth with banks that refuse to open an account.
2. Incorrect activity codes. Registering an IT company under a generic “consulting” license can raise compliance red flags and delay payments.
3. Virtual office only, without Ejari. Major banks won’t approve accounts without a valid lease agreement registered with Ejari (Dubai’s tenancy registration system).
4. Neglecting audit requirements. Cabinet Decision No. 84/2025 enforces annual audits. Non-compliance may lead to fines up to AED 50,000 and license non-renewal.
5. Overcomplicated offshore structures. Long UBO (Ultimate Beneficial Owner) chains increase due diligence time, risk account freezes, and can delay transactions.
1. Focusing only on license cost. A cheaper license can result in months of back-and-forth with banks that refuse to open an account.
2. Incorrect activity codes. Registering an IT company under a generic “consulting” license can raise compliance red flags and delay payments.
3. Virtual office only, without Ejari. Major banks won’t approve accounts without a valid lease agreement registered with Ejari (Dubai’s tenancy registration system).
4. Neglecting audit requirements. Cabinet Decision No. 84/2025 enforces annual audits. Non-compliance may lead to fines up to AED 50,000 and license non-renewal.
5. Overcomplicated offshore structures. Long UBO (Ultimate Beneficial Owner) chains increase due diligence time, risk account freezes, and can delay transactions.
How RSBM supports your business?
We manage every step of your setup - from zone selection to audit compliance - so you can focus on building your product, not battling bureaucracy.
• Free Zone selection aligned with your goals.
We analyze your business model, budget, and banking needs to identify 1–2 zones with the best approval likelihood.
• Accurate document preparation.
We handle every detail: company registration, office lease, activity codes, and legal documents - ready for bank and regulator review.
• Bank account opening support.
We prepare your banking file, manage KYC/AML queries, and liaise with the bank until your account is successfully opened.
• Operational setup.
We configure accounting systems, hire staff (if needed), and prepare for the annual audit per Cabinet Decision No. 84/2025.
• Ongoing compliance.
We ensure your business remains audit-ready, compliant with licensing updates, and scalable across the UAE.
We manage every step of your setup - from zone selection to audit compliance - so you can focus on building your product, not battling bureaucracy.
• Free Zone selection aligned with your goals.
We analyze your business model, budget, and banking needs to identify 1–2 zones with the best approval likelihood.
• Accurate document preparation.
We handle every detail: company registration, office lease, activity codes, and legal documents - ready for bank and regulator review.
• Bank account opening support.
We prepare your banking file, manage KYC/AML queries, and liaise with the bank until your account is successfully opened.
• Operational setup.
We configure accounting systems, hire staff (if needed), and prepare for the annual audit per Cabinet Decision No. 84/2025.
• Ongoing compliance.
We ensure your business remains audit-ready, compliant with licensing updates, and scalable across the UAE.
As a result you don’t just get a business license and a bank account - you receive a fully compliant, operational company with a transparent structure and a working financial setup. Any mistake along the way could delay or block your operations. Professional, timely guidance isn’t a luxury in the UAE - it’s a strategic necessity.
Trust RSBM to do it right from the start. While others deal with rejections and re-submissions, you’ll enter the market with a structure that works. Your business deserves the right foundation - and we know exactly how to build it.