UAE free zones 2026: SHAMS, IFZA, Meydan, RAKEZ compared

Free zones are the main tool for entrepreneurs and freelancers who need a legal base in the UAE with a residence visa. There are several dozen free zones in the country, and licence costs vary widely: for example, the Meydan package starts at AED 12,500 a year (meydanfz.ae, October 2026). This article compares in detail the four free zones most often considered by Russian-speaking entrepreneurs: SHAMS, IFZA, Meydan and RAKEZ. What the package includes, what is paid separately, how much renewal costs and which free zone suits whom. The data comes from discussions in Russian-speaking expat chats, January–July 2026.

Related topics: complete guide to work and business in the UAE, all the ways to get a residence visa, company formation in the UAE, end to end.

How a free zone works: the principle in two paragraphs

A free zone is an area with a special economic regime. You register a company inside the free zone, get a licence for a type of activity (services, trading, consulting, media) and, on the basis of that licence, get a UAE residence visa. The visa gives the right to live in any emirate, not only the one where the free zone is registered.

The key advantages of a free zone over a mainland company are simpler registration and zero Corporate Tax if the qualifying income conditions are met. 100% foreign ownership without an Emirati partner has been available on the mainland too for most activities, except those of strategic importance, since the amendments to the Commercial Companies Law (Federal Decree-Law No. 26 of 2020). The limitation: a free zone company cannot work directly with clients in the UAE domestic market, only within its zone or for export.

Comparison table: SHAMS, IFZA, Meydan, RAKEZ

The Meydan price is from the official meydanfz.ae price list as of October 2026. Check SHAMS, IFZA and RAKEZ prices on the free zones' official websites before deciding.

SHAMS: the budget free zone in Sharjah

SHAMS (Sharjah Media City) is one of the most popular free zones among Russian-speaking residents, especially freelancers, copywriters, designers and media professionals. It is in Sharjah, but the visa gives the right to live in any emirate.

Advantages:

• Budget starter package (check the current price on the SHAMS website)
• Suits individual professionals: no need to hire staff
• Fast processing (according to reviews, from a few days to 2 weeks)

Limitations:

• Sharjah is not Dubai: for some counterparties this matters
• Work only for export or within the zone, without direct access to the UAE local market

SHAMS suits those who work for foreign clients and are not physically tied to Dubai. If your counterparties are outside the UAE, a Sharjah address is not a problem.

IFZA: minimal bureaucracy, maximum speed

IFZA (International Free Zone Authority) is in Dubai, in Dubai Silicon Oasis. It is popular with those who value fast registration with a minimum of documents.

Advantages:

• A Dubai address (Dubai Silicon Oasis)
• Fast processing, minimal bureaucracy
• Suits consulting, trading and services

Limitations:

• Package prices are not published on the website and are given on request; compare the full cost including the visa
• A less recognisable brand than DMCC or DIFC

IFZA is an option for those who need fast registration and a Dubai address.

Meydan: a free zone in Dubai

Meydan Free Zone is in Dubai, which is its key advantage for those who value a Dubai address. It is in the mid-price segment: more expensive than SHAMS, but cheaper than DMCC and DIFC.

Advantages:

• A registered address in Dubai, which matters to counterparties and partners
• Package from AED 12,500 a year (meydanfz.ae, October 2026)
• Suits a wide range of activities

Limitations:

• More expensive than the budget free zones of the northern emirates (for example, SHAMS)
• The same restrictions on working with the local market as all free zones

Meydan makes sense when a Dubai address matters for the business but the budget does not stretch to DMCC or DIFC.

RAKEZ: for trading and manufacturing

RAKEZ (Ras Al Khaimah Economic Zone) is in Ras Al Khaimah, an emirate north of Dubai. It is one of the most flexible free zones, with a variety of packages: from a virtual office for a consultant to warehouses and production space.

Advantages:

• Flexible packages: from a virtual office to warehouse and industrial premises
• Suits trading, industrial and manufacturing, unlike most free zones focused only on services
• Packages on the RAKEZ website: 24-hour setup from AED 6,000, all-inclusive AED 14,000 (rakez.com, October 2026)

Limitations:

• Ras Al Khaimah is about an hour's drive from Dubai
• For purely service companies (IT, consulting), there are no clear advantages over SHAMS or IFZA

RAKEZ is the choice for those planning physical trading, manufacturing or warehousing. For an IT freelancer or consultant, SHAMS is simpler and cheaper.

Mainland vs free zone: key differences

Before choosing a free zone, make sure you do not need a mainland company. The main differences:

For most entrepreneurs working for foreign clients, a free zone is the more logical choice: simpler administration and zero Corporate Tax on qualifying income. The mainland makes sense if your business is aimed at the UAE domestic market.

More on comparing the routes in the guide to work and business in the UAE.

Hidden costs: what the starter package does not include

A free zone starter package is not the full cost. A number of mandatory expenses are added to the base licence price, and they are often not stated in advertising offers:

In total, start-up costs including all hidden items can be 1.5–2 times the base licence price. Before signing with a free zone, ask for a full breakdown: the starter package, all mandatory government fees and the cost of the first renewal.

You can check government fees yourself on the official UAE government portal.

Licence renewal: the annual cost

A free zone licence is not a one-off payment. It must be renewed every year (or every two years, depending on the package). In some free zones the renewal costs about the same as the starter package, in others more. Visa and health insurance renewals come on top.

With annual income below AED 50,000–70,000, it is worth checking whether the setup pays off. For a freelancer earning up to AED 5,000 a month, the cost of maintaining a licence can be 15–25% of annual income; according to discussions in the chats, this is a common reason for disappointment.

"Company health insurance covers the minimum. Dubai is a car city, rent is 2.5–3 thousand a month."

— from a resident's experience, Freelance Permit, 2026

If your main income is below AED 5,000 a month, consider the alternatives: an employment visa through an employer rather than your own licence. More in the UAE residence guide. For UAE residence support options, see the service page.

Which free zone for whom

A bank account for a free zone company

A separate question is a bank account for the company. Not all banks work with all free zones. According to the chats, ENBD, Mashreq and ADCB are the most accommodating options. WIO is a digital bank you can try to open online, but there have been cases of accounts being closed without explanation (according to Russian-speaking expat chats, January–July 2026).

More on opening an account in the article How to open a bank account in the UAE.

On the DDA/Gofreelance freeze

If you were considering a freelance licence through DDA (Dubai Design District) or the Gofreelance platform, note that, in applicants' experience, new freelance visas have not been issued through DDA since autumn 2025, though the licence can be renewed. In November 2025, Dubai's GDRFA, according to Gulf News, denied a suspension of freelance visas, so check the status before applying.

The alternative is a freelance licence through SHAMS, IFZA or RAKEZ; in applicants' experience, these free zones continue to issue licences and visas. More in the article The freeze on freelance visas through DDA.