UAE Free Zones Explained: Your Complete 2025 Guide to Business Setup and Benefits
- Radu Lupescu
- May 31, 2025
- 4 min read
The United Arab Emirates is home to one of the most business-friendly environments in the world, and at the heart of this ecosystem are its free zones—designated economic areas that offer 100% foreign ownership, tax exemptions, and simplified business setup processes.
Whether you’re an entrepreneur, a freelancer, or a company looking to expand into the Middle East, UAE free zones provide a cost-effective and flexible way to establish your presence in a globally connected economy.
In this guide, you’ll learn what free zones are, how they work, what benefits they offer, and explore a full list of free zones across all seven emirates, updated for 2025.
What Is a Free Zone in the UAE?
A free zone (or free trade zone) is a designated area in the UAE that operates under its own set of business regulations, separate from the mainland legal system. These zones are designed to attract foreign investment, foster innovation, and promote specific industries such as technology, media, finance, logistics, and manufacturing.
Companies registered in a free zone are governed by the free zone authority, not the UAE mainland Commercial Companies Law.
Key Benefits of Setting Up in a Free Zone (2025)
Benefit | Details |
100% Foreign Ownership | No local sponsor or partner required |
0% Corporate & Personal Tax | Exempt from UAE income tax (until 2028 for most sectors) |
Full Repatriation of Capital | Profits and capital can be transferred abroad freely |
Simplified Setup Process | Licensing, visa processing, and office space via one entity |
Asset Protection & Privacy | High degree of confidentiality and operational autonomy |
Easy Visa Sponsorship | Ability to sponsor employees and dependents |
Industry-Specific Clustering | Operate among peers in the same sector (e.g., media, tech) |
Types of Licenses Offered in Free Zones
Depending on the zone, you can apply for:
Commercial License – Trading of goods or services
Professional/Service License – Consulting, design, IT, education, etc.
Industrial License – Manufacturing and production
E-commerce License – Online business and digital services
Freelance Permit – For individuals working independently
List of Free Zones by Emirate (2025 Update)
Below is a comprehensive list of the main free zones in each emirate, including those offering freelance visas and low-cost company setup.
Dubai Free Zones
Dubai is home to the most diverse and globally recognized free zones in the UAE.
Free Zone | Focus |
Dubai Multi Commodities Centre (DMCC) | Trading, commodities, crypto, finance |
Dubai Internet City (DIC) | Tech, IT services, software |
Dubai Media City (DMC) | Media, production, journalism |
Dubai Silicon Oasis (DSO) | Tech startups, electronics, innovation |
Dubai International Financial Centre (DIFC) | Banking, finance, fintech |
Dubai Airport Freezone (DAFZA) | Import/export, aviation-linked business |
Dubai South (DWC) | Logistics, aviation, e-commerce |
Jebel Ali Free Zone (JAFZA) | Logistics, manufacturing, industrial |
Meydan Free Zone | Freelancers, digital businesses |
Dubai Knowledge Park | Education, training |
Dubai Design District (d3) | Fashion, design, architecture |
International Free Zone Authority (IFZA) | General trading, SMEs, remote setups |
Dubai also supports remote business setup with digital licensing options.
Abu Dhabi Free Zones
Abu Dhabi free zones support heavy industries, media, and innovation.
Free Zone | Focus |
Abu Dhabi Global Market (ADGM) | Financial services, startups, fintech |
Twofour54 | Media, content creation, gaming |
KIZAD (KEZAD Group) | Logistics, industrial, warehouses |
Masdar City Free Zone | Sustainability, clean energy, R&D |
Abu Dhabi Airport Free Zone (ADAFZ) | Aviation, cargo, logistics |
Creative Media Authority | Freelancers, digital media |
Sharjah Free Zones
Sharjah offers cost-effective business setup and robust export hubs.
Free Zone | Focus |
Sharjah Media City (Shams) | Freelancers, creative businesses |
Sharjah Publishing City Free Zone | Publishing, media, education |
Hamriyah Free Zone | Industrial, manufacturing, warehouses |
Sharjah Airport International Free Zone (SAIF Zone) | Trading, logistics, light industry |
Shams and SPCFZ offer quick setup, low-cost packages, and flexible licensing.
Ajman Free Zones
Ajman offers affordable business licenses and proximity to Dubai/Sharjah.
Free Zone | Focus |
Ajman Free Zone (AFZ) | Trading, consultancy, small businesses |
Ajman Media City | Media, digital content, freelancers |
Umm Al Quwain Free Zone
Known for low startup costs and simple registration.
Free Zone | Focus |
Umm Al Quwain Free Trade Zone (UAQ FTZ) | General trading, consultancy, logistics |
Ras Al Khaimah Free Zones
RAK is known for cost efficiency and real estate investment options.
Free Zone | Focus |
Ras Al Khaimah Economic Zone (RAKEZ) | SMEs, freelancers, industrial businesses |
RAK Maritime City Free Zone | Marine, shipping, port services |
Fujairah Free Zones
Strategically located on the East Coast, ideal for trade and shipping.
Free Zone | Focus |
Fujairah Free Zone | Trading, logistics, services |
Creative City Fujairah | Media, production, influencers |
How to Set Up a Company in a Free Zone (2025 Process)
Choose your free zone based on your business activity
Select a license type (commercial, professional, freelance, etc.)
Submit your:
Passport copy
Visa (if already a resident)
Passport-size photo
Business plan or activity list
Choose office type (flexi-desk, shared, virtual, or physical office)
Pay licensing and setup fees
Receive your trade license and company documents
Apply for residence visa and Emirates ID
Free Zone Setup Costs (Estimated for 2025)
Expense | Range (AED) |
License and registration | AED 6,000 – AED 15,000/year |
Office space/flexi-desk | AED 3,000 – AED 10,000/year |
Visa processing (per person) | AED 3,000 – AED 6,000 |
Freelance license (Shams/SPC) | Starting from AED 5,750/year |
Some free zones offer 0% corporate tax until 2028 under UAE tax exemptions for qualifying businesses.
Mainland vs. Free Zone: What’s the Difference?
Feature | Mainland Business | Free Zone Business |
Foreign Ownership | 100% (since 2021 reform) | 100% |
Office Requirement | Mandatory | Optional/flexi desk available |
Trade Across UAE | Unrestricted | Must appoint local distributor |
Visa Sponsorship | Available | Available |
Regulations | Federal/Emirate laws | Free zone authority regulations |
Free zones are ideal for businesses focused on international markets or services.
Final Thoughts
UAE free zones offer a flexible, cost-effective, and globally trusted way to launch and operate a business in one of the world’s most dynamic economies. With benefits like 100% ownership, low taxation, and industry-specific hubs, they continue to attract startups, SMEs, freelancers, and global enterprises.
Whether you’re launching a freelance consultancy in Sharjah, a tech startup in Dubai, or a logistics company in KIZAD, there’s a free zone designed to meet your business goals.
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