UAE Free Zone Selector: Commercial Companies
9 free zones ranked by source country, shipping mode, warehousing needs, and total annual cost, not just licence fees.
Answer 7 questions and get a ranked shortlist of UAE free zones matched to your trading or commercial operation. Covers 9 zones across logistics, warehousing, licence fees, and true annual cost, so you compare the full picture, not just the headline number.
The licence fee is 15% of your real annual cost.
Most free zone guides compare setup fees and licence costs. For a commercial company, that’s the wrong number. The bigger variables are warehousing and logistics, and both of those change significantly based on where your goods come from and how they move into the UAE.
Rates range from AED 150/sqm/yr in northern emirates to AED 1,000/sqm/yr in premium Dubai zones. On 1,000 sqm, that’s AED 850K difference annually, before you touch a licence fee.
Which makes JAFZA the default answer, but not always the right one. If you import from Turkey, Africa, or use mixed-mode freight, Sharjah’s free zones can be cost-competitive with better warehousing rates.
JAFZA, DAFZA, Dubai South, SAIF Zone, Hamriyah, RAKEZ, Ajman, KIZAD, and IFZA: each scored on logistics access, warehousing cost, licence cost, and distribution reach based on your specific profile.
- Logistics scored by your source country
China vs. Turkey vs. India each have different port affinity scores across UAE ports. This tool factors that in, not just which free zone is closest to a port in general.
- Total annual cost, not just setup
Results show estimated annual cost: licence renewal + warehousing at your required sqm + setup amortized over 3 years. A real number you can compare.
- Product compatibility check
Not all free zones accept all product types. Food trading, electronics, bulk industrial goods: each zone scores differently. Incompatible matches are flagged.
- Distribution reach included
Selling to UAE only vs. GCC distribution vs. global re-export changes the ranking. JAFZA wins on global re-export. KIZAD wins for Abu Dhabi market access.
- Tell us about your operationSource country, shipping mode, product category, warehouse size, and distribution destination
- We calculate your total costLogistics score + warehousing cost + licence cost across all 9 zones, weighted by your priority
- Get your top 3 matchesWith score breakdown, estimated annual cost, and the specific reason each zone fits your profile
Tell us about your operation
Answer all 7 questions, then click “Calculate My Best Free Zone.” Results are based on your specific combination, not a generic ranking.
Your Matched Free Zones
Based on your operation profile, here are the top 3 free zones ranked by total fit score.
Not sure which one is right for your setup?
I’ve worked through free zone selection, business formation and commercial setup in the UAE across 142+ engagements. A 30-minute conversation can save you months of back-and-forth with the wrong authority.
How to Choose the Right UAE Free Zone for a Trading Company
Most founders pick a free zone based on the licence fee, and then spend their first two years paying for that mistake. I've worked through 142+ engagements across UAE free zones, and the pattern is consistent: the licence cost is rarely the problem. Warehousing, logistics connectivity, and freight mode alignment are where the real cost is.
Here's how I think about the UAE free zone decision for trading and commercial companies.
JAFZA vs SAIF Zone: the Most Common Comparison
JAFZA (Jebel Ali Free Zone) is the default answer for sea-freight-heavy operations importing from Asia. Its port access is unmatched, Jebel Ali handles around 60% of Dubai's trade volume, and the infrastructure for large-volume distribution is built for it. If you're importing containers from China, South Korea, or India and distributing into the UAE or re-exporting to the wider Gulf, JAFZA is often the right call.
SAIF Zone (Sharjah Airport International Free Zone) is the right answer if you're doing mixed-mode freight, air and sea, importing from Turkey, Central Asia, or Africa, or if your warehousing requirement makes Dubai's rates prohibitive. Warehousing in SAIF Zone can run 40–60% cheaper than JAFZA, and for the right product profile, that delta is the business model.
The Other Free Zones Worth Knowing
RAKEZ (Ras Al Khaimah Economic Zone) is increasingly competitive for light manufacturing and trading: lower licence fees, free warehousing in some packages, and strong road connectivity to Dubai. It works best for companies not dependent on air freight. Dubai South is the right choice if you're air-freight dependent and distributing within the GCC. It sits adjacent to Al Maktoum International Airport and is purpose-built for logistics-led operations. DAFZA (Dubai Airport Free Zone) suits high-value, fast-moving goods where proximity to DXB justifies the premium. IFZA (International Free Zone Authority) and Ajman Free Zone both offer competitive entry-level packages for startups and SMEs where lower setup cost is the priority over logistics infrastructure.
The real variable most guides miss is source country affinity. Port routing in UAE is not neutral, how goods move from China versus Turkey versus Eastern Europe is different, and which free zone sits at the end of the most efficient logistics chain for your specific origin matters more than which zone has the lowest licence fee on a brochure. The tool above scores this directly.
Free Zone vs Mainland for Trading Companies
If your primary distribution target is within the UAE (selling directly to retail, restaurants, or end consumers) mainland is often the better structure, because free zone companies need a mainland distributor to sell locally, which adds cost and complexity. For re-export, pan-GCC distribution, or B2B supply to other free zone companies, a free zone licence is typically cleaner and more cost-effective. Most of the 142+ engagements I've worked through fall clearly into one category once we map the actual customer base, but it's worth thinking through before you file.
“If you're unsure whether the tool output matches what you're trying to build, message me directly. I review the actual numbers, not a brochure quote.”
If you've used the tool and want a second opinion on the result, or you're still not sure whether free zone or mainland is the right call, WhatsApp me directly. I'll tell you what I see in 5 minutes. Or you can start with the GCC Growth Diagnostic if you're still in the planning stage.
Frequently Asked Questions: UAE Free Zones for Trading Companies
What is the best free zone in UAE for a trading company in 2026?
There is no single best free zone: the right answer depends on your source country, freight mode, warehousing requirement, and distribution target. JAFZA is the strongest for high-volume sea freight from Asia. SAIF Zone is typically better for mixed-mode freight from Turkey, Africa, or Central Asia. RAKEZ and Ajman Free Zone are stronger for cost-sensitive setups with road distribution. Dubai South leads for air-freight-dependent operations. The tool above scores all 9 zones against your specific profile to give you a ranked shortlist.
What is the difference between JAFZA, SAIF Zone, and RAKEZ?
JAFZA (Jebel Ali) is Dubai-based, port-adjacent, and handles the highest trade volume in the region, ideal for sea freight-dominant operations. SAIF Zone (Sharjah Airport) offers lower warehousing costs, proximity to Sharjah International Airport, and tends to suit mixed-mode or air-primary freight. RAKEZ (Ras Al Khaimah) offers the lowest overall cost base, free or subsidised warehousing in some packages, and is strong for road-distributed goods that don’t need port or airport adjacency. Licence fee ranges: JAFZA AED 25,000–40,000/yr renewal; SAIF Zone AED 15,000–25,000/yr; RAKEZ AED 10,000–18,000/yr (indicative figures, verify directly with each authority).
Can a UAE free zone company sell directly in the UAE mainland market?
Not directly. A free zone company can sell to other free zone entities and export freely, but selling to UAE mainland buyers (retail stores, consumers, mainland-registered businesses) requires either a mainland distributor, a temporary import arrangement, or a separate mainland licence. If your primary market is UAE domestic, a mainland licence is usually cleaner. Free zone structure is optimised for re-export, pan-GCC distribution, and B2B supply into other free zones or to international buyers.
How much does it cost to set up in a UAE free zone?
Setup costs (year one) for a commercial trading licence in a UAE free zone typically range from AED 15,000 at Ajman Free Zone to AED 60,000+ at JAFZA, depending on licence type, visa allocation, and whether shared or dedicated office space is included. But total annual cost (which includes warehousing, visa fees, renewal, and any service charges) can vary by 3–5× depending on the free zone and your operation size. The tool above calculates total annual cost (not just licence fee) for each zone based on your inputs.
Is IFZA a good free zone for a startup trading company in the UAE?
IFZA (International Free Zone Authority in Dubai) is a strong option for early-stage trading companies that don’t yet have high warehousing needs. It offers flexible packages, competitive entry-level pricing, and a streamlined setup process, making it popular with bootstrapped founders and international companies testing the UAE market. The trade-off is that it offers less logistics infrastructure than JAFZA or SAIF Zone, so if your business model requires significant warehousing or port proximity from day one, other zones will serve you better.
What visa allocation does a UAE free zone company get?
Visa allocation in UAE free zones is tied to your office/flexi-desk arrangement, not the licence type. A flexi-desk or virtual office package typically allows 1–2 visas. Dedicated offices come with proportional visa allocation (usually 1 visa per 9 sqm of office space, though this varies by zone). If your team size requires more visas than a free zone package allows, this often becomes the deciding factor in the setup decision, and in some cases tips the calculation toward mainland.
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