First-Year Setup Cost Comparison
Dubai operates over 30 free zones, each with distinct fee structures, sector focus, and operational advantages. The following comparison covers the most commercially significant zones based on total first-year costs for a standard trading or services license.
| Free Zone | License Fee (AED) | Visa Package (2 visas, AED) | Min. Office Cost (AED/yr) | Est. First-Year Total (AED) |
|---|---|---|---|---|
| DMCC | 12,500 | 7,600 | 18,000 | 50,000-65,000 |
| JAFZA | 15,000 | 8,200 | 22,000 | 60,000-80,000 |
| DAFZA | 11,000 | 7,000 | 20,000 | 48,000-62,000 |
| DIFC | 15,500 | 9,500 | 55,000 | 95,000-130,000 |
| Dubai South | 10,500 | 6,800 | 12,000 | 38,000-50,000 |
| IFZA | 8,900 | 6,500 | 6,000 | 28,000-38,000 |
| Dubai Silicon Oasis | 11,500 | 7,200 | 15,000 | 42,000-55,000 |
Activity-Based License Costs
| License Type | Typical Range (AED) | Common Zones |
|---|---|---|
| General Trading | 12,000-25,000 | DMCC, JAFZA, DAFZA |
| Professional Services | 8,000-16,000 | IFZA, DSO, DMCC |
| E-Commerce | 9,000-15,000 | CommerCity, IFZA, DMCC |
| Technology | 10,000-20,000 | DSO, DTEC, DIFC |
| Financial Services | 15,000-75,000 | DIFC, ADGM |
| Media | 12,000-22,000 | Dubai Media City, twofour54 |
Visa Allocation and Costs
Visa allocation is tied to office space size. Flexi-desk arrangements typically include 1-3 visa allocations, while dedicated offices scale from 6 to 50 or more depending on floor area. Per-visa costs range from AED 3,200 to AED 5,500 including medical, Emirates ID, and stamping fees.
Hidden Cost Considerations
Published license fees represent base costs. Businesses should budget for establishment card fees (AED 1,000-2,000), share capital attestation where required, bank account opening (which may require minimum deposits of AED 50,000-250,000), and PRO services for document processing (AED 3,000-8,000 annually).
Renewal Costs
Annual renewal fees typically amount to 70-85 percent of the initial setup cost, as one-time registration and establishment card fees do not recur. Visa renewal adds approximately AED 2,800-4,000 per employee every two to three years depending on the zone.
Selection Criteria
Cost alone does not determine optimal zone selection. Businesses should evaluate sector alignment, banking access, physical infrastructure needs, client proximity, and the zone’s reputation with international counterparties. DIFC and ADGM command premiums because their common-law frameworks and independent courts attract institutional finance clients.