Starting a business in the UAE doesn’t have to break the bank. While some free zones charge AED 50,000+ for a license, others offer packages starting from under AED 6,000 — including your trade license, visa allocation, and basic office solution.
We’ve compared 45+ UAE free zones to find the most affordable options for entrepreneurs, freelancers, and small businesses in 2026.
What Makes a Free Zone “Cheap”?
License cost alone doesn’t tell the full story. The true cost of setting up includes:
- Trade license fee — the base annual cost
- Visa costs — typically AED 3,000–7,000 per visa
- Office space — virtual offices start from AED 1,000/year, physical offices from AED 15,000+
- Government fees — establishment card, immigration card, etc.
We rank free zones by total first-year cost, which includes the license and at least one visa.
The 5 Cheapest UAE Free Zones
1. IFZA (International Free Zone Authority)
IFZA consistently ranks as one of the most affordable Dubai free zones. With trade licenses starting from AED 12,900 and visa packages from AED 3,750, your total first-year cost can be as low as AED 16,650.
2. Meydan Free Zone
Meydan offers one of the cheapest entry points in Dubai, with packages starting from AED 5,750 for a freelancer license. It’s ideal for solo entrepreneurs who need a UAE presence without a large upfront investment.
3. RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ is the go-to budget option outside Dubai. License fees start from AED 7,500, and the free zone offers flexible office solutions including virtual offices. RAK’s lower cost of living makes it even more attractive.
4. SHAMS (Sharjah Media City)
SHAMS offers freelancer packages from AED 7,350, making it one of the cheapest options for media professionals, content creators, and consultants. Setup takes just 2-3 days.
5. Ajman Free Zone
Ajman Free Zone rounds out the top 5 with trade licenses from AED 7,500. It’s a solid choice for trading companies that want low costs with easy access to Dubai.
Cheapest vs. Best Value — Know the Difference
The cheapest license isn’t always the best value. Consider these factors:
- Visa allocation — some cheap packages only include 1–2 visas
- Renewal costs — first-year promos may come with higher renewal fees
- Banking support — some free zones have better bank relationships, which speeds up account opening
- Reputation — investors and clients may judge your business by its jurisdiction
Next Steps
Ready to compare costs in detail? Use our setup cost comparison tool to see a side-by-side breakdown of all 45+ free zones, or browse all free zones with filters for budget, emirate, and business activity.