IFZA vs RAKEZ vs SHAMS: most affordable freezone license?– 2025 Cost Comparison Guide, Top Choice for Entrepreneurs,al qusais, dubai, uaeSetting up a company in the UAE in 2025 is now much easier, quicker, and more inexpensive than ever. Although the UAE has more than 40 free zones, three names consistently stand out to investors looking for the cheapest, most reliable, and most flexible freezone license: IFZA (Dubai), RAKEZ (Ras Al Khaimah Economic Zone), and SHAMS (Sharjah Media City).

Each free zone has its strengths: the lowest cost for some, strongest branding for others, and for some, a balanced package of affordability and long-term benefits. This comprehensive guide prepared by Ideas Business Setup Experts will show you which free zone offers the best value to your business, the lowest starting cost, fastest approval, and most convenient setup in 2025.

IFZA Free Zone – Affordable and Prestigious (Dubai)

IFZA has grown to be one of the most recognized free zones in Dubai because of its affordable costs, smooth processes, and impressive global branding. If you need the credibility of a Dubai business address without paying the extremely high price of premium Dubai free zones, IFZA is often the best value.

IFZA works for business owners dealing with international clients, consultants, digital professionals, and anyone who benefits from having “Dubai” as their business location. The processes are smooth, customer service is effective, and the list of required documents is minimal.

IFZA is not the cheapest free zone in the UAE, but it still offers one of the most budget-friendly options available in Dubai. Zero-visa licenses usually start from around AED 12,500 to AED 13,500, while licenses with visa allocation start at approximately AED 15,000 or more, depending on the activity and number of visas required. The cost of a visa can range from AED 3,500 up to AED 4,500.

IFZA offers many business activities, fast company incorporation, and a professional ecosystem. The only disadvantages are that renewal costs are higher compared to some other free zones, and the initial setup cost is not as low as places like RAKEZ or SHAMS.

RAKEZ Free Zone – A Balanced, Affordable yet Powerful Powerhouse

RAKEZ is a well-established and highly trusted free zone, offering a mix of commercial, consultancy, industrial, media, and trading activities. It’s ideal for businesses wanting a balanced combination of affordability, flexibility, and stability.

RAKEZ is especially popular among trading companies, manufacturing businesses, and import–export activities. Infrastructure support is strong, and they offer various office, warehouse, and industrial solutions.

The cost of opening a company in RAKEZ is very attractive. Zero-visa licenses normally start from AED 6,300 to AED 8,500, making it one of the most cost-effective free zones in the UAE. In case you require a visa, the cost of licensing will go higher, approximately AED 12,000–14,500. The prices for the visas are comparable with the other free zones at an estimated AED 3,500 to AED 4,500.

RAKEZ provides a perfect fit for investors who intend to keep setup and renewal costs as low as possible, along with multiple activity options, a reliable business environment, and the flexibility to upgrade to physical offices or industrial facilities when needed. The only minor negative consideration is that RAKEZ is not in a major city, so some investors who want a Dubai-based brand identity will find IFZA more suitable.

SHAMS Free Zone – the cheapest free zone license in UAE

When it comes to affordability, SHAMS is definitely the most affordable free zone license in the UAE in 2025. The low costs, fast processing, and modern approach have made SHAMS an extremely sought-after destination for freelancers, consultants, media professionals, startups, and owners of online businesses.

Shams boasts offering multi-activity licenses without any additional charge, hence allowing many entrepreneurs to operate various types of services under the same license. Besides, the documentation is quick and the process simplified easily with no requirement for any physical office. This makes the SHAMS license the top choice among budget-conscious entrepreneurs and first-time investors.

The most attractive part is the cost. SHAMS zero-visa licenses start from AED 5,750 to AED 6,000, which is the lowest in the entire UAE. Licenses with a visa allocation start at approximately AED 11,500 to AED 13,000. Visa fees are also within the standard UAE range, around AED 3,500–4,500.

The only limitations are that SHAMS is not ideal for heavy trading or industrial activities, and some banks may request additional documentation for SHAMS license holders. However, for digital businesses, consultancy services, marketing agencies, freelancers, influencers, and e-commerce startups, SHAMS offers unbeatable value.

Cost Comparison

If you want the very lowest price, SHAMS clearly wins with its starting cost of about AED 5,750. It is one of the cheapest free zones in the UAE. Coming close to it is RAKEZ, with no-visa licenses available from about AED 6,300 to AED 8,500. While more expensive than SHAMS, RAKEZ has much better options available for trading and industrial activities. At the highest end, IFZA starts at around AED 12,500-AED 13,500 for no-visa licenses. However, IFZA offers the strategic advantage of a Dubai business address, which really is invaluable for many investors in terms of branding and perceived credibility.

For investors requiring visas, SHAMS and RAKEZ have more economical visa-inclusive packages, while IFZA’s Dubai-based packages are highly priced. The same goes for renewal fees: SHAMS and RAKEZ are affordable, while the rates for IFZA fall into the mid-range category.

Which free zone is the cheapest?

On a cost basis strictly, SHAMS stands out between the three free zones. The cheapest license, fastest approvals, and simplest documentation are available here.

However, affordability isn’t everything when it comes to investors. RAKEZ becomes the best option if you plan to engage in trading or industrial activities or if you want a more flexible long-term setup with low renewal fees. IFZA, on the other hand, is the best choice if you want a premium business address in Dubai without paying premium Dubai costs.

Each free zone has its own strengths, and the right choice depends on your business goals, visa needs, industry type, and budget.