Overview
This guide uses publicly available information to help you compare options. Prices and features are subject to change. Please verify details on official websites before making decisions.
RAKEZ (Ras Al Khaimah Economic Zone) is the economic zone authority for Ras Al Khaimah, formed from the merger of RAK FTZ and RAK Investment Authority. It serves over 16,000 companies from more than 100 countries. RAKEZ offers both free zone and non-free zone (mainland RAK) licenses, making it versatile for different business models.
Shams (Sharjah Media City Free Zone) is based in Sharjah and focuses on media, creative, and general trading businesses. Despite the media-focused name, Shams offers licenses for a wide range of activities including consulting, e-commerce, and professional services. It has become popular for its competitive pricing and fast processing.
Both zones are well-established and serve as popular entry points for entrepreneurs looking to start a UAE business on a budget. They offer 100% foreign ownership and the standard free zone benefits.
Key Features Comparison
| Feature | RAKEZ | Shams |
|---|---|---|
| Location | Ras Al Khaimah | Sharjah |
| Established | 2017 (merger of RAK FTZ + RAKIA) | 2017 |
| Registered Companies | 16,000+ | Growing rapidly |
| License Types | Free zone + non-free zone | Free zone only |
| Business Activities | Wide range including industrial | Media, creative, trading, services |
| Office Options | Virtual, flexi-desk, office, warehouse, land | Virtual, flexi-desk, office |
| Industrial/Warehouse | Available — manufacturing and logistics | Limited industrial options |
| Freelancer License | Available | Available |
Pricing
Pricing as of April 2026. Visit rakez.com and shams.ae for current pricing.
RAKEZ:
- Service/professional license: from approximately AED 5,500/year
- Freelancer license: from approximately AED 4,500/year
- Visa package: additional cost per visa
- Typical first-year total (1 visa): AED 10,000-15,000
Shams:
- Service license: from approximately AED 5,750/year
- Freelancer permit: from approximately AED 3,750/year
- Visa package: additional cost per visa
- Typical first-year total (1 visa): AED 10,000-14,000
Both zones compete aggressively on price and frequently adjust their packages. The difference between them on a total first-year basis is often minimal — sometimes under AED 1,000 for comparable packages. Always request a complete breakdown of all fees before committing.
Which Is Right for Your Business
RAKEZ is well suited for:
- Manufacturing or industrial businesses that need warehouse or factory space
- Businesses that may benefit from both free zone and non-free zone license options
- Companies looking for a wide variety of business activities under one authority
- E-commerce businesses that need storage and logistics facilities
Shams is well suited for:
- Media, content creation, and creative businesses (Shams has deep expertise here)
- Freelancers and solo consultants looking for the lowest-cost entry
- Businesses that prefer a Sharjah address (closer to Dubai than RAK)
- Service businesses that do not need physical warehouse or office space
Geography can be a factor: Sharjah borders Dubai directly, while Ras Al Khaimah is approximately 1 hour north of Dubai. If proximity to Dubai matters for your day-to-day operations, Shams has a location advantage. If you need industrial facilities, RAKEZ has a clear edge.
Take our free zone quiz for a personalized recommendation based on your specific business needs and budget.
Frequently Asked Questions
Can I get a UAE residence visa with a budget free zone license?
Yes. Both RAKEZ and Shams offer visa packages alongside their licenses. The visa itself is a standard UAE residence visa — there is no difference in quality or benefits compared to visas from premium free zones. The visa allows you to live in the UAE, open bank accounts, and sponsor dependents.
Is it harder to open a bank account with a RAKEZ or Shams license?
Digital banks like Wio Business accept licenses from both RAKEZ and Shams. Traditional banks may ask more questions about businesses from non-Dubai free zones, but accounts are regularly opened. Having a clear business plan and proper documentation matters more than the specific free zone name.
Can I operate in Dubai with a RAKEZ or Shams license?
You can provide services to clients anywhere in the UAE and internationally. Your company address will be in Ras Al Khaimah (RAKEZ) or Sharjah (Shams), but you can work from anywhere. For physical retail or a Dubai office address, you would need a Dubai-based license.
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Start Free AssessmentThis content is for informational purposes only and does not constitute legal, tax, or financial advice. Information is current as of March 2026. Always verify with the relevant authorities.