Overview
The Ras Al Khaimah Economic Zone (RAKEZ) is one of the UAE’s most cost-effective free zones, formed in 2017 through the consolidation of RAK Free Trade Zone and RAK Investment Authority. Located in the northern emirate of Ras Al Khaimah, approximately one hour’s drive from Dubai, RAKEZ hosts over 15,000 companies from more than 100 countries. The zone is particularly popular among startups, SMEs, and entrepreneurs seeking affordable UAE market entry.
Key Sectors
RAKEZ accommodates a broad range of industries including general trading, consulting, e-commerce, manufacturing, education services, media, technology, construction materials, building supplies, food processing, and professional services. The zone’s flexibility in licensing makes it suitable for nearly any commercial activity.
Setup Process
Company formation in RAKEZ is straightforward and digital. Applicants select a business activity and licence type (commercial, consultancy, educational, service, industrial, or freelancer), submit identification and incorporation documents online, and choose a facility package. RAKEZ offers some of the fastest incorporation times in the UAE, with basic licences issued within two to three business days.
Costs and Licensing
RAKEZ is one of the most affordable free zones in the UAE. Commercial licence packages start at approximately AED 5,500 per year, including the licence, registered agent, and establishment card. Flexi-desk solutions with visa allocation start at around AED 7,500 per year. Dedicated office spaces and warehouses are available at rates significantly below Dubai free zones, with offices starting at approximately AED 12,000 annually.
Benefits
RAKEZ provides zero corporate and personal income tax for qualifying activities, 100 percent foreign ownership, full profit repatriation, extremely low setup and operating costs, a flexible licensing system with over 50 activity categories, and a dedicated customer happiness centre for administrative support. The zone offers the cost advantages of a northern emirate with reasonable proximity to Dubai.
Ownership Rules
All RAKEZ entities may be 100 percent foreign-owned. No local sponsor or partner is required. Entity types include Free Zone Establishment, Free Zone Company, and freelancer permits.
Tax Regime
RAKEZ free zone companies benefit from zero percent corporate tax on qualifying income under the UAE framework. No personal income tax applies. Customs duties are waived for goods within the free zone. Standard five percent VAT applies per UAE federal law.
Infrastructure
RAKEZ operates across multiple locations in Ras Al Khaimah, including Al Hamra Industrial Zone, Al Hulaila Industrial Zone, and the RAK Technology Free Zone campus. Facilities include offices, warehouses, open yards, and industrial plots. The zone connects to Emirates Road, the Ras Al Khaimah seaport, and is within reach of Dubai and Sharjah airports.
Ideal Investor Profile
RAKEZ is best suited for startups, solo entrepreneurs, consultants, e-commerce businesses, small trading companies, and SMEs seeking the most affordable way to obtain a UAE free zone licence, visa eligibility, and a legitimate business presence without the premium costs of Dubai or Abu Dhabi zones.