UAE Free Zone Setup Costs

One of the most common questions from entrepreneurs setting up in a UAE free zone is: "How much does a visa actually cost?" The answer isn't as straightforward as a single number, because a UAE residence visa involves multiple government fees, third-party charges, and zone-specific processing costs. Understanding each component helps you budget accurately and avoid surprises.

Medical Fitness Test

Every visa applicant must undergo a medical fitness test at a government-approved health centre. This test screens for communicable diseases including tuberculosis (via chest X-ray) and HIV/Hepatitis through a blood test. The cost ranges from AED 300 to AED 500 depending on the testing centre and emirate. Results typically take 2–5 working days. Some free zones have partnerships with specific medical centres that may offer slightly discounted rates or faster processing. It's worth noting that the medical test must be repeated for every visa renewal cycle (every 2–3 years), so this is a recurring cost.

Emirates ID

The Emirates ID is a mandatory national identity card for all UAE residents. Issued by the Federal Authority for Identity and Citizenship (ICP), it serves as your primary identification document within the UAE. The cost is standardised at AED 370 for a 2-year ID or approximately AED 570 for a 3-year ID. This fee is paid directly to the government and is non-negotiable regardless of your free zone. The Emirates ID is required for opening bank accounts, signing tenancy agreements, and virtually all government services. Processing typically takes 5–15 working days, though expedited services are available for an additional fee.

Health Insurance

Health insurance is mandatory for all UAE residents, and most free zones require you to have active coverage before your visa can be processed or renewed. Basic compliant health insurance plans start from around AED 600–700 per person per year for essential coverage. However, many professionals opt for enhanced plans costing AED 1,500–4,000 per year that include dental, optical, and outpatient coverage. If you're sponsoring dependents (spouse and children), you'll need separate policies for each, which can significantly increase your overall costs. Some free zones offer group insurance plans at discounted rates for companies with multiple visas — always ask about this option.

Security Deposit

Most free zones require a refundable security deposit for each visa issued. This deposit ranges from AED 2,000 to AED 5,000 per visa, with the amount often varying based on the applicant's nationality. The deposit is held by the free zone authority or the immigration department and is refundable when the visa is cancelled — though the refund process can take 30–90 days. Some zones have eliminated this requirement entirely, while others may accept a bank guarantee instead. This deposit is an important cash flow consideration, especially if you plan to hire multiple employees.

Visa Stamping and Processing

The visa stamping fee covers the actual issuance of your UAE residence visa. This government fee ranges from AED 1,500 to AED 3,000 depending on the visa type and duration. Most free zones process 2-year or 3-year employment visas. The process involves an entry permit, a status change (if you're already in the UAE), and the final visa stamping. Many free zones handle this through their own PRO (Public Relations Officer) services, but some charge an additional service fee of AED 500–1,500 for visa processing assistance. If you're applying from outside the UAE, additional courier and attestation fees may apply.

Establishment Card

Free zone companies need an establishment card (also called a labour card or company card) to sponsor visas. This card is issued by the relevant authority and costs between AED 1,000 and AED 2,500, typically renewed annually. The establishment card essentially grants your company permission to employ and sponsor workers, and is a prerequisite before you can process any visa applications. Some free zones include this fee in their license package, while others charge it separately.

Total Visa Cost: What to Budget

Adding everything up, the realistic total cost per visa (including all government fees, insurance, and deposits) ranges from AED 5,000 to AED 12,000. Budget-friendly zones in RAK, Ajman, and Sharjah tend to fall at the lower end, while Dubai and Abu Dhabi zones sit at the higher end. For a solo entrepreneur applying for a single visa, plan for approximately AED 7,000–8,000 all-in as a reasonable middle estimate. If you need multiple visas, remember that some costs scale linearly (medical test, insurance, deposits per person) while others are one-time (establishment card).

For a detailed breakdown of visa quotas and which zones offer the most visas, see our complete visa guide.