Top 5 Cheapest Free Zones in Dubai: Costs, Benefits & Who They’re Ideal For

Key Takeaway: 

• Hidden costs can add up even in the cheapest free zones, including visas, office requirements, and annual renewals.
  
  
• The right free zone depends on your business type, with some better suited for freelancers, others for tech, logistics, or e-commerce.
  
  
• Seeking expert guidance helps avoid costly mistakes and ensures a smooth, compliant setup.

How to Choose the Cheapest Free Zone in Dubai Without Overspending

Dubai has earned its reputation as a global business hub, but for many entrepreneurs, freelancers, and small businesses, cost is a major factor. With over 20 free zones in the emirate alone, finding the cheapest free zone in Dubai that still delivers real value can feel overwhelming. 

From our years of advising startups and SMEs in the UAE, we’ve seen countless businesses make hasty choices just to save a few thousand dirhams, only to face unexpected costs later.

In this guide, we’ll walk you through the top 5 cheapest free zones in Dubai, breaking down costs, benefits, and who each zone is ideal for. By the end, you’ll know exactly which free zone suits your business model without compromising quality or compliance.

How Much Does it Really Cost to Set Up in a Dubai Free Zone?

Before we get into specifics, let’s clear up one common misconception: the license fee you see on a free zone website is rarely the total cost. This is where professional business setup services in Free Zone Dubai play a crucial role in helping entrepreneurs understand the full financial picture. Based on our experience, many businesses budget only for the initial license and are then surprised by additional expenses.:

• License fees: This is the official government fee and can range from AED 10,000 to AED 25,000 ($2,725 to $6,810) for basic packages.
• Enrollment fees: Usually a one-time payment for company incorporation, sometimes included in the license fee.
• Visa allocation: Most free zones offer 1 to 3 visas with a basic license, but additional visas cost extra.
• Office requirement: Even “cheap” free zones require a flexi-desk or virtual office, which adds to the cost.
• Renewals: Fees are annual and often increase each year slightly, especially if you upgrade your office or visa count.
  
  

• Expert tip: Always request a detailed breakdown from the free zone authority to avoid surprises. In our experience, this alone saves startups around AED 5,000–7,000 ($1,362 to $1,907) in the first year.

Quick Comparison Table: Cheapest Free Zones in Dubai (2025)

This table gives a snapshot of affordability, visa options, and office requirements. Let’s break each down in detail.

IFZA Dubai – Best Overall Low-Cost Free Zone

Overview

The International Free Zone Authority (IFZA) has grown popular among cost-conscious entrepreneurs. It’s located in Dubai South, offering credibility without the premium pricing of JAFZA or DIFC.

Starting Cost Breakdown

• License: AED 11,900 ($3,244)
• Visa: 1–3 visas included
• Flexi-desk included

Key Benefits

• Zero paid-up capital required
• Fast approval process, often within 2 to 3 days
• Wide range of business activities, including consultancy, trading, and e-commerce

Ideal For

• Consultants looking to start quickly
• Small trading businesses
• Overseas entrepreneurs entering Dubai for the first time
  
  

• Expert experience: IFZA works particularly well for startups that want to test the market without committing huge capital. We advised a client last year who started a consultancy here with just AED 12,500 ($3,406) and was able to scale to three visas within six months.

Meydan Free Zone – Best for Solo Founders & Freelancers

Overview

Meydan Free Zone is situated near the famous Meydan Racecourse and provides a low-cost option for individual entrepreneurs. Its pricing is attractive for freelancers and solo founders who don’t need large office space.

Starting Cost Breakdown

• License: AED 12,000 ($3,270)
• Visa: 1 visa included
• Flexi-desk required

Key Benefits

• No physical office required for some activities
• Streamlined compliance process
• A prestigious Dubai address that impresses clients

Ideal For

• Freelancers like coaches, designers, and writers
• Solo entrepreneurs testing new business ideas
• Digital service providers who operate mostly online
  
  

• Expert experience: One client we worked with, a freelance marketing consultant, chose Meydan because the cost was lower than most other Dubai free zones, but she still got a professional address and a visa for her team member. It’s a great example of balancing cost and credibility.

Dubai Silicon Oasis Authority (DSOA) – Tech at Lower Cost

Overview

DSOA is government-owned and designed for tech-focused businesses. While it’s slightly higher in cost than IFZA or Meydan, it provides access to tech infrastructure that’s hard to find in other low-cost zones.

Starting Cost Breakdown

• License: AED 13,000 ($3,543)
• Visa: 1–3 visas
• Flexi-desk or small office required

Key Benefits

• Innovation-friendly ecosystem
• Access to IT and tech infrastructure
• Competitive renewals that don’t jump excessively

Ideal For

• Tech startups and SaaS companies
• IT consultancies
• Small digital product companies
  
  

• Expert experience: One of our clients was a SaaS company that started with a flexi-desk at DSOA. Within a year, they expanded to three visas and a small office while keeping overall costs below AED 25,000 ($6,810). For tech entrepreneurs, this is a smart combination of affordability and infrastructure.

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Dubai Airport Free Zone (DAFZA) – Affordable Logistics Entry

Overview

DAFZA is strategically located near Dubai International Airport, making it ideal for businesses involved in logistics, import/export, or distribution. It’s often thought of as expensive, but it offers some entry-level options under AED 15,000 ($4,088).

Starting Cost Breakdown

• License: AED 14,500 ($3,951)
• Visa: 1–3 visas
• Small office required

Key Benefits

• Strong customs integration for import/export
• International credibility and recognition
• Scalable options for logistics and trading companies

Ideal For

• Import/export businesses
• Small logistics firms
• Distribution companies
  
  

• Expert experience: From our years of consulting experience, businesses in trading and logistics often underestimate the value of DAFZA’s location. A client we advised saved significant shipping time and costs just by having a license here, making the slightly higher license worth it.

Dubai Commer City – Cheapest E-commerce Free Zone

Overview

Dubai Commer City is the UAE’s first dedicated e-commerce free zone. It’s designed for online sellers, marketplaces, and cross-border e-commerce businesses.

Starting Cost Breakdown

• License: AED 15,000 ($4,088)
• Visa: 1–2 visas included
• Virtual office available

Key Benefits

• E-commerce infrastructure and marketplace integrations
• Ready-to-use fulfillment solutions
• Scalable digital business model

Ideal For

• Amazon and Shopify sellers
• Small online brands targeting the UAE and GCC markets
• Cross-border e-commerce entrepreneurs
  
  

• Expert experience: We helped a client launch an online Shopify store here last year. They started with one visa and a virtual office, and within six months, the business was fully operational, fulfilling orders efficiently across the region. For e-commerce, this free zone provides unmatched convenience at a reasonable price.

Cheapest Free Zone in Dubai by Business Type

Hidden Costs to Watch Out for in “Cheap” Free Zones

Even the cheapest free zone in Dubai comes with hidden costs if you’re not careful:

• Visa quota limitations: Adding more visas can be expensive.
• Mandatory office upgrades: Some zones require a physical office after the first year.
• Activity mismatch penalties: Certain activities might need a higher license tier.
• Bank account approval challenges: Some banks prefer established free zones with higher credibility.

Being aware of these early can save thousands in unexpected expenses.

Free Zone vs Mainland: Is “Cheapest” Always the Right Choice?

We often see new entrepreneurs chase the cheapest license without thinking long-term. While free zones offer 100% ownership and easy setups, mainland companies may sometimes be cheaper if you plan to deal directly with the UAE market. 

• Expert advice: Consider your business type, visa needs, and client location before deciding.

Expert Tip: How to Choose the Right Free Zone Without Overpaying

Ask these questions before committing:

• How many visas do I need initially and in the next two years?
• Are there mandatory office upgrades at renewal?
• Is my business activity fully covered under the basic license?
• Does the free zone have strong credibility with banks and clients?

Answering these can prevent costly mistakes. In our experience, startups that skip this step often end up paying double in the first year.

Top 5 Cheapest Free Zones in Dubai with RadiantBiz

At RadiantBiz, this is exactly where we see most cost overruns happen, not at the license stage, but at the decision stage.

Our process always starts with a focused assessment where we look at your business goals, budget comfort, visa needs, and target market. This helps us narrow down which of the cheapest free zones in Dubai actually makes sense for your business, rather than pushing a one-size-fits-all option.

Once that’s clear, you’re paired with a dedicated free zone specialist who has hands-on experience working across multiple Dubai free zones, including IFZA, Meydan, Dubai Silicon Oasis, DAFZA, and CommerCity. 

Your consultant helps you finalise the right business activity, license type, and cost-effective package, while coordinating directly with the relevant authorities to keep the process smooth, compliant, and predictable from day one.

FAQs

1. What is the cheapest free zone in Dubai?

IFZA and Meydan are among the cheapest, with license fees starting around AED 11,900 to 12,000 ($3,244 to $3,270).

2. Can I get a Dubai residence visa with a cheap free zone license?

Yes. Most affordable free zones include at least one visa with the basic license.

3. Which free zone is best for freelancers on a budget?

Meydan Free Zone is ideal for freelancers, offering low-cost licenses and minimal office requirements.

Cheapest Doesn’t Always Mean Smartest

The cheapest free zone in Dubai is not always the best for every business. From IFZA’s flexibility to CommerCity’s e-commerce focus, each zone has unique advantages. By considering costs, benefits, and business type, you can make a choice that’s affordable yet strategic.

If you’re unsure which free zone fits your business, don’t guess. A wrong choice could cost you tens of thousands in corrections. 

Seek our professional on-the-ground guidance, contact us via mail at info@radiantbiz.com, WhatsApp‬, or call us at +971521322895‬!