IFZA vs RAKEZ
IFZA and RAKEZ are two of the most-asked-about UAE free zones — but they serve very different founders. IFZA is Dubai-based and optimised for service businesses and consultants wanting a Dubai address. RAKEZ sits in Ras Al Khaimah and is the cheapest serious option for industrial, manufacturing and cost-conscious trading companies. Here is the honest side-by-side.
Dubai's most cost-effective free zone for service businesses
Industrial-grade free zone with the lowest visa costs in the UAE
IFZA vs RAKEZ — the full comparison
Every factor that actually matters when choosing, with the winner called where one side clearly leads.
| Factor | IFZA | RAKEZ | Winner |
|---|---|---|---|
| Starting licence price | AED 12,900 | AED 6,500 | RAKEZ |
| With 1 visa from | AED 14,900 | AED 8,500 | RAKEZ |
| Setup time | 5–7 business days | 3–5 business days | RAKEZ |
| Emirate / address | Dubai (Dubai Silicon Oasis) | Ras Al Khaimah | IFZA |
| Foreign ownership | 100% | 100% | Tie |
| Corporate tax | 0% on Qualifying Income, 9% above AED 375,000 otherwise | 0% on Qualifying Income, 9% above AED 375,000 otherwise | Tie |
| Physical office required | No — flexi-desk bundled | No — flexi-desk bundled | Tie |
| Best for activities | Consulting, marketing, IT, e-commerce, holding | Manufacturing, trading, industrial, warehousing | Depends |
| Banking friction | Medium — Dubai address helps with most UAE banks | Higher — some Dubai banks prefer Dubai-licensed entities | IFZA |
| Visa allocation (standard pack) | Up to 7 visas | Up to 6 visas, more with warehouse | Depends |
| Activity list size | 1,000+ activities | 2,500+ activities | RAKEZ |
| Industrial land / warehouses | Not available | Warehouses and land plots from 2,000 sqft | RAKEZ |
| Typical renewal cost | AED 12,500–14,500/year | AED 6,000–8,500/year | RAKEZ |
| Travel time to Dubai | 0 — already in Dubai | 45–60 minutes by road | IFZA |
| Notable clients / scale | 20,000+ companies, founder-heavy base | 14,500+ companies across six sub-zones | Depends |
Who should choose which
Concrete founder profiles — pick the side where you see yourself twice.
International Free Zone Authority
- Consultants and agencies who need a Dubai address on their invoices
- Founders whose clients and bankers are mostly in Dubai
- Service businesses that will never touch physical inventory
- Holding and IP companies wanting brand credibility of "Dubai, UAE"
Ras Al Khaimah Economic Zone
- Manufacturers, light industrial and assembly operations
- Trading and import/export companies optimising for margin
- Bootstrapped founders who care more about runway than a Dubai postcode
- Companies needing warehouse or land plots alongside the licence
Frequently asked questions
Straight answers to the questions founders actually ask us about IFZA vs RAKEZ.
Our honest take
If your business is service-based and your clients care that you are in Dubai, pick IFZA. If you are industrial, cost-sensitive, or need physical space, RAKEZ wins on every commercial metric. Founders who are indifferent on geography should run the numbers over three years — the RAKEZ saving compounds fast.