RAKEZ vs IFZA: Which UAE Free Zone Is Better for Your Business in 2025?
When planning to start a business in the UAE, two popular names often come up: RAKEZ (Ras Al Khaimah Economic Zone) and IFZA (International Free Zone Authority in Dubai). Both are trusted free zones that offer full foreign ownership, zero income tax, and quick company setup.
Still, each has its own advantages, and the right choice depends on what kind of business you want to start. In this guide, we’ll help you understand the difference between RAKEZ and IFZA in 2025 so you can choose what fits your plan best.
Overview of RAKEZ and IFZA
RAKEZ is based in Ras Al Khaimah, in the northern part of the UAE. It’s known for low setup costs, large industrial areas, and good access to seaports. It’s ideal for manufacturing, trading, logistics, and service businesses.
IFZA, on the other hand, is located in Dubai Silicon Oasis. It’s popular among startups, consultants, and tech companies that prefer a Dubai address with modern business facilities.
Cost Comparison in 2025
Cost is often the first thing business owners compare.
RAKEZ Free Zone offers one of the most affordable company formation options in the UAE. You can start an e-commerce or service business for around AED 6,000 to AED 12,000 per year. Most packages already include visa eligibility and basic workspace access.
IFZA setup costs are slightly higher. The average cost in 2025 is around AED 12,500 to AED 14,000, depending on the license type and visa requirement. IFZA focuses more on flexible business packages rather than industrial facilities.
If your priority is a budget-friendly setup, RAKEZ is usually the better option. If you prefer a Dubai address with a premium image, IFZA may be worth the higher cost.
Location and Business Environment
RAKEZ is located in Ras Al Khaimah, is perfect for companies dealing with shipping, logistics, or exports. It is close to Port Saqr, one of the largest bulk shipping ports in the region, and well connected to other emirates by road.
IFZA is Dubai-based base giving it the advantage of being close to Dubai International Airport, top logistics centers, and a large local market. For businesses that need frequent meetings or networking in Dubai, IFZA provides easier access.
License and Business Activity Options
RAKEZ offers a many of licenses such as:
- Commercial
- Industrial
- Service
- E-commerce
- Media and Technology
It also supports industrial operations, warehouses, and manufacturing facilities, which few free zones provide at this cost level. IFZA focuses more on service and consultancy licenses. It’s popular among professionals such as IT firms, marketing agencies, financial consultants, and online businesses.
In short, RAKEZ is better for trading, manufacturing, or mixed business models. IFZA is better for digital or service-based companies that need a Dubai address.
Visa and Office Facilities
Both RAKEZ and IFZA allow you to apply for multiple visas based on your license and workspace size. RAKEZ provides options like co-working spaces, standard offices, warehouses, and industrial land. IFZA mostly offers modern office units and shared spaces inside Dubai Silicon Oasis. If you need a physical facility for production or storage, RAKEZ is the practical choice. For small teams or remote workers, IFZA’s office options are more flexible.
Processing Time and Setup Ease
In both free zones, company setup is fast and paperless. With all documents ready, you can receive your license within 3 to 7 working days.
However, RAKEZ may take a little longer for industrial or manufacturing activities since extra approvals can be required. IFZA service licenses are often approved within 2 to 3 days because most setups are digital.
Reputation and Long-Term Benefits
RAKEZ is one of the largest and oldest free zones in the UAE, with thousands of active companies from over 100 countries. It offers long-term stability, strong government backing, and good infrastructure for expansion.
IFZA is newer but has grown quickly because of its flexible packages and marketing support. Its Dubai location gives it a strong brand image, especially for companies that want to impress international clients.
Which Free Zone Is Better for You?
If you are focused on low setup cost, export, or manufacturing, RAKEZ is the smart choice. If your goal is to run a consulting, online, or tech business with a Dubai presence, IFZA may suit you better. The good news is that both zones offer full foreign ownership, 0% tax, and complete repatriation of profits. You can’t go wrong with either; it just depends on your priorities.
Which One Fits Your Business Best? (RAKEZ vs IFZA at a Glance)
| Business Goal | Best Choice | Why It Fits You |
|---|---|---|
| Starting with a small budget | RAKEZ | Lower setup cost and affordable renewal fees make it ideal for first-time investors and small businesses. |
| Need a Dubai business address | IFZA | Gives your company a Dubai location with modern offices inside Dubai Silicon Oasis. |
| Manufacturing or warehousing | RAKEZ | Offers ready warehouses, land, and direct access to Port Saqr for exports. |
| Online or digital business | IFZA | Tailored for e-commerce, IT, and consultancy licenses. |
| Looking for long-term stability | RAKEZ | One of the oldest and most trusted free zones in the UAE, backed by the RAK government. |
| Want fast setup with fewer documents | IFZA | Digital registration process and quick license approvals. |
Get Expert Help Before You Decide
Choosing the right UAE free zone can save you time and money. At Mehar Business Solutions LLC, we help entrepreneurs compare free zones, understand license requirements, and complete their business setup quickly, even if you need a business setup in a mainland or a free zone.
Whether you pick RAKEZ or IFZA, our team will guide you through the entire process from document preparation to trade license approval.
Contact us today for a free consultation and find out which free zone fits your business goals best.
Comments are closed