Cheapest Free Zones in the UAE – 2025

Cheapest UAE Free Zone in 2025: SRTIP Free Zone

SRTIP Free Zone offers a Services Business License for AED 5,500 without visa, making it one of the cheapest UAE options. Established in 2016, it targets innovation sectors and supports affordability with flexi-desks and co-working spaces. Entrepreneurs in R&D benefit most from its cost-effective structure.

Why Choose a Budget-Friendly Free Zone in 2025?

Low-cost zones offer the same legal protections and benefits as premium options, but with more accessible licensing packages and flexible workspace requirements.

Investing in cost-effective free zones is ideal for:

• Startups with limited capital
• Freelancers and consultants
• SMEs aiming to reduce overhead
• Digital businesses without physical presence needs
• International companies testing the UAE market

Budget-Friendly Dubai and UAE Free Zones in 2025

Fujairah Creative City

Starting package: AED 5,500/year

Often cited as the cheapest free zone in the UAE, Fujairah Creative City caters to creative professionals, freelancers, and service-based businesses.

Fujairah Creative City offers the affordable UAE free zone alternative with packages from AED 5,530. The setup includes a virtual office, one visa, and no requirement for physical presence.

Both free zones provide 100% foreign ownership, zero corporate tax, and complete profit repatriation while keeping startup costs minimal for entrepreneurs and small businesses.

Key Benefits:

• Virtual office options (no physical presence needed)
• Fast licensing (24–48 hours)
• 1–6 visa eligibility
• No capital requirement
• Simple documentation

Ideal For: Media professionals, consultants, remote workers, digital businesses
Limitations: Limited banking options and distance from Dubai/Abu Dhabi

Umm Al Quwain Free Zone (UAQ)

Starting package: AED 12,000/year

UAQ Free Zone is known for low startup and renewal costs and minimal bureaucracy.

Key Benefits:

• Lowest renewal fees
• Easy documentation
• Virtual and physical office options
• Personalised customer service
• Affordable warehouses

Ideal For: Traders, manufacturers, service providers
Limitations: Lower name recognition and fewer networking opportunities

Ajman Free Zone

Starting package: AED 12,000/year

Ajman Free Zone offers low-cost licenses starting from AED 5,500, with annual renewals at AED 6,000. Established in 1988 and located near a sea port, it provides strategic and affordable business setup. AFZ is the only UAE free zone offering 2, 3, or 6 payment installments, requiring post-dated UAE checks. Packages include one of the cheapest visa options, with additional visa packages available based on your facility. Visa costs average AED 3,600 including medical and Emirates ID.

Key Benefits:

• Fast digital licensing
• E-channel visa services
• Affordable warehouse space
• Port proximity
• 30 minutes from Dubai Airport

Ideal For: E-commerce, trading, services
Limitations: Less specialization in niche industries

Sharjah Media City (Shams)

Starting package: AED 5,750/year

SHAMS offers the most affordable UAE free zone license, starting at AED 5,750. The package includes a professional media license and one activity from 13 options such as digital marketing, programming, or photography. Extra activities cost AED 1,000 each. No office is required. Some packages allow up to six visas. The license suits entrepreneurs in media and tech industries and excludes visa services, making it ideal for residents and existing business owners.

Key Benefits:

• Freelancer-friendly packages
• No NOC required
• Multiple workspace options
• Close to Sharjah University City

Ideal For: Content creators, marketers, tech startups
Limitations: Mostly focused on media industries

Ras Al Khaimah Economic Zone (RAKEZ)

Starting package: AED 11,400/year

RAKEZ offers Services Business Licenses from AED 11,440 with a Flexi Desk and no visa, making it a flexible, low-cost option. It supports industries like manufacturing, trade, and consultancy. Businesses benefit from affordable licenses, access to warehouses, and a supportive regulatory environment.

Key Benefits:

• Flexible payment terms
• Visa eligibility included
• Warehouses and offices available
• Great banking relationships

Ideal For: Trading, manufacturing, education, growing SMEs
Limitations: Higher upfront cost than others, but offers more scalability

International Free Zone Authority (IFZA – Dubai)

Starting package: AED 10,000/year

IFZA offers one of the lowest-cost free zone licenses in Dubai, starting from AED 10,000. It supports general trading, consulting, and service businesses. License types include commercial, professional, and branch setups. Entrepreneurs can save up to AED 1,000 by choosing a DIY company formation.

Key Benefits:

• Dubai address & presence
• Flexible visa and license packages
• International-friendly setup
• Strong support ecosystem

Ideal For: Professional services, consultants, Dubai-focused businesses
Limitations: Costlier than northern emirate zones

UAE's Cheapest Free Zones Cost Comparison

Note: The Sharjah free zones (SRTIP, SHAMS, and SPC) offer the lowest initial setup costs but may have limitations in terms of included visa services and activity scope. Additional costs may apply for visa processing, document authentication, and bank account setup beyond the starting package price.

Methodology for Cheapest Freezone in UAE

To find the cheapest free zone in the UAE, we reviewed every zone’s initial setup costs—primarily trade‑license and visa fees. We confirmed these numbers with each free zone office. Then we compared the price of their standard business packages. Finally, we noted any extra charges—such as added activities, employee visas, or office rent—that could raise the total cost of forming a company.

Top Costs and Considerations for a Budget-Friendly Free Zone Setup in the UAE

1. Visa Processing
   Expect AED 2,000–5,000 per visa and a separate visa allocation charges which typically ranges from AED 1,800 to AED 5,000. Ajman average visa cost is AED 3,600, while SRTIP license plus one visa allotment price starts from AED 10,500
2. Bank Account Setup
   Most UAE banks require a minimum deposit between AED 10,000 and AED 50,000.
3. Document Attestation
   Costs range from AED 2,500 to AED 3,500 for each document depending on your country of origin.
4. Annual Audits
   Required by some zones, audits may cost between AED 4,000 and AED 10,000 per year.
5. Office Options
   
   • Virtual Office: Low-cost solution included in many starter packages.
   • Physical Office: Shared offices in Ajman start at AED 8,000/year. Full upgrades begin at AED 25,000/year.
6. Business Activities
   
   • Bundled Activities: Ajman and SRTIP allow multiple business activities within the base package.
   • Extra Charges: Most Free Zones charged additional fee for choosing more than three business activities, like SHAMS charges AED 1,000 per additional activity.
7. Visa Quotas
   
   • Flexi-desks in Ajman allow up to two visas.
   • Warehouse facilities can support 10+ visas.
8. Location Strategy
   Choose Freezones near ports or cities like Dubai and Sharjah if logistics and access matter to your business.
9. Industry Fit
   Confirm the free zone allows your specific activity, especially if you are in specialized fields like media, tech, or manufacturing.

Tip: Virtual offices help minimize initial expenses. Choose visa and office packages only when essential.

Tips for saving money in 2025 with an economic freezone

• Start virtual, upgrade only when needed
• Go multi-year for 10–25% discounts
• Take advantage of promotions during summer or Ramadan
• Choose the right license—avoid paying for unneeded activities
• Limit visas to only what i’s required initially

Other Factors Beyond Cost

• Industry fit: Some zones specialize in media, trade, or manufacturing
• Banking ease: Some zones have better banking relationships
• Location: Consider travel time if clients or partners are in Dubai/Abu Dhabi
• Scalability: Choose a zone that allows easy expansion
• Credibility: Certain zones offer more prestige and trust

Not all zones allow every type of license. Learn more about permitted business activities in the UAE to avoid setup delays.

Frequently Asked Questions

Can I work across the UAE with a free zone license?
Yes, but direct business on the mainland or within other free zone requires a local agent or license add-ons like opening of a branch.

Do all free zones offer 0% tax?
Yes, provided you meet substance requirements for corporate tax exemption.

Can I register remotely in 2025?
Yes, most affordable free zones offer remote setup. Banks may still need in-person visit later to open a business bank account

How do renewals compare to setup fees?
Usually 5–10% less than the initial year. Multi-year discounts can help reduce renewals.

Can I switch zones later?
You can choose to redomicile your company, —best to choose carefully from the start.

Final Thoughts: Best Free Zones in UAE for 2025

• Lowest Cost Overall: STRIP, Fujairah Creative City
  
• Affordable & Convenient: Ajman Free Zone
  
• Creative Focus: Sharjah Media City (Shams)
  
• For Scalable Growth: RAKEZ
• Dubai Presence on a Budget: IFZA

Conclusion: Affordable Doesn’t Mean Compromise

Budget-friendly free zones in the UAE give startups, consultants, and SMEs all the core benefits of business setup—without the premium price tag. By matching your business needs to the offerings of the right zone, you can launch confidently in 2025 while keeping your startup costs under control.

Find the most affordable freezone for your business activities in the UAE