If you’re a budding entrepreneur looking to launch your business, choosing one of the cheapest free zones in UAE can save you significant startup costs while still offering world-class facilities and business opportunities. The UAE is home to more than 40 free zones, each offering unique benefits for startups, including 100% foreign ownership, tax exemptions, and simplified setup processes.
In this article, we’ll walk you through the top 5 cheapest free zones in UAE for startups in 2025 to help you make the best decision for your business.
Why Choose a UAE Free Zone?
Free zones in the UAE are designed to attract foreign investment by providing:
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100% ownership without the need for a local sponsor.
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Tax exemptions on corporate and personal income.
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Customs duty benefits for imports and exports.
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Simple and fast business setup processes.
For many entrepreneurs, finding the most cost-effective option is essential to maximize profitability from the start.
1. Sharjah Media City (Shams Free Zone)
Shams offers one of the most affordable licenses in the UAE, starting from as low as AED 5,750 per year. It’s ideal for media, marketing, and creative industries.
Key Benefits:
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Low-cost license packages.
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Quick setup (within a few days).
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Flexible office solutions.
2. Umm Al Quwain Free Trade Zone (UAQ FTZ)
UAQ FTZ is perfect for small businesses and startups looking for competitive pricing and minimal paperwork.
Key Benefits:
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License cost starting from AED 8,000.
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100% company ownership.
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Easy visa processing.
3. Ajman Free Zone (AFZ)
Ajman Free Zone is well-known for its budget-friendly packages and strategic location near Dubai and Sharjah.
Key Benefits:
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License starting from AED 6,000.
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Flexible payment plans.
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Wide range of business activities.
4. Fujairah Creative City Free Zone
Ideal for entrepreneurs in media, consulting, and freelance sectors, Fujairah Creative City offers cost-effective business licenses without the need for a physical office.
Key Benefits:
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License from AED 6,500.
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No requirement for a physical office space.
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Easy online setup process.
5. Ras Al Khaimah Economic Zone (RAKEZ)
RAKEZ is one of the most popular and cheapest free zones in UAE for industrial, commercial, and service-based businesses.
Key Benefits:
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License starting at AED 11,000.
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Access to world-class industrial facilities.
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Competitive utility costs.
Visit RAKEZ for detailed package options.
Cheapest Free Zones in UAE — At a Glance
| Rank | Free Zone | Starting Cost (AED) | Best For |
|---|---|---|---|
| 1 | Ajman NuVentures | 4,888 | Solo entrepreneurs (zero visas) |
| 2 | SHAMS / SPC | 5,750 | Creatives, media, freelancers |
| 3 | Fujairah Creative City | 5,520 – 6,000 | Remote professionals |
| 4 | UAQ FTZ | 8,000 | SMEs with low-budget needs |
Why These Free Zones Stand Out
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Ultra-low startup fees make them accessible to entrepreneurs with limited capital.
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They offer minimal paperwork and quick setup, crucial for speed to market.
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Strategic benefits include media focus (SHAMS, SPC, Creative City) or proximity to transport hubs (Ajman, UAQ).
How to Choose the Right Free Zone for Your Startup
When deciding between the cheapest free zones in UAE, consider:
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Your business activity type.
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Required office space (if any).
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Visa requirements.
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Long-term scalability.
Set Up a Business in Free Zone: Step by Step Guide
Conclusion
Choosing one of the cheapest free zones in UAE can help you launch your startup with minimal costs while enjoying the benefits of a business-friendly environment. Whether you choose Shams, UAQ FTZ, Ajman Free Zone, Fujairah Creative City, or RAKEZ, each offers unique advantages for entrepreneurs in 2025.
Need help navigating the process or choosing the best low-cost zone for your niche? Top Next Consultants is here to guide you every step.
To get a free consultation with our Professionals, call us on +971 52 9227960. Send a WhatsApp message for a chat query on +971 52 9227960. Email us at info@tnc-uae.com