IFZA vs RAKEZ - Dubai or Ras Al Khaimah

The choice between IFZA and RAKEZ is partly a choice of emirate. IFZA gives you a Dubai address in Dubai Silicon Oasis. RAKEZ licenses in Ras Al Khaimah, about an hour or more from Dubai by road, with industrial and business zones that include warehouses and land for development.

RAKEZ also licenses two kinds of entity, free zone and non-free zone, while IFZA is a free zone only. That changes how each can reach UAE customers. Prices below are advertised starting prices rather than quotes.

IFZA and RAKEZ side by side

Quick rule: Choose IFZA if you want a Dubai address, office-park space and the Dubai mainland route. Choose RAKEZ if you want a lower advertised entry price, industrial space, warehouses or land, or the option of a non-free zone entity in Ras Al Khaimah. If you need more than one visa on a desk, check RAKEZ's one-visa flexi desk rule first.

IFZA vs RAKEZ cost

RAKEZ's own site advertises a starter package from AED 6,000 and an all-inclusive setup from AED 14,000. It also lists an all-inclusive package at AED 16,500 per year that includes a residence visa, the immigration file, Emirates ID and medical arrangements, and a shared workstation. The IFZA pages we checked did not list prices, so its starting figure here is the one tracked in our free zone data.

Because the packages include different things, compare the same bundle: licence, desk or office, one visa, establishment card and renewal.

Free zone vs non-free zone entity in RAKEZ

A RAKEZ free zone entity needs only a RAKEZ licence. A non-free zone entity also needs a licence from the Ras Al Khaimah Department of Economic Development. The FAQ says the free zone entity cannot trade on the mainland directly and may trade within the UAE through an agent, distributor, representative or parent company holding the relevant licence.

This is the main structural difference from IFZA, which is a free zone only.

Share capital and shareholders at RAKEZ

RAKEZ states the minimum share capital of a free zone LLC is AED 10,000, with each share valued at AED 1,000, and a free zone company or non-free zone LLC can have up to 50 shareholders. Industrial, publishing and real estate development activities have higher capital figures. IFZA says paid-up share capital is not required when you start.

Is RAKEZ or IFZA better for e-commerce or industry?

Online sellers and consultants can use either zone. RAKEZ has a dedicated E-commerce licence and the E-commerce package includes one complimentary residence visa. Manufacturers and warehousing businesses are better served by RAKEZ's industrial zones, land plots and warehouses; IFZA's website describes office space in its Business Park rather than industrial land.

Things to weigh up

• Ras Al Khaimah is an hour or more from Dubai by road, so check whether you need to attend in person
• RAKEZ's website quotes different company counts in different places, so do not rely on a headline figure
• Licences are typically valid one year; RAKEZ lets several licence types renew for three years at discounted rates, subject to terms
• Package prices and inclusions change, so ask for current terms from each