RAKEZ and IFZA are two of the most popular budget-friendly free zones in the UAE. IFZA offers a Dubai address from AED 5,750, while RAKEZ in Ras Al Khaimah starts from AED 7,500 with industrial facilities. Here's how they compare.
Cost Comparison
IFZA: license from AED 5,750, visa AED 5,200+, total first year ~AED 12,000-15,000. RAKEZ: license from AED 7,500, visa AED 4,500+, total first year ~AED 13,000-16,000. Very similar overall costs, but IFZA edges out slightly for pure service businesses.
Location & Prestige
IFZA: Dubai Silicon Oasis area — you get a Dubai address and business card. RAKEZ: Ras Al Khaimah — 1-1.5 hours from Dubai. For client-facing businesses, the Dubai address from IFZA is a significant advantage.
Business Activities
IFZA: strong for services, consulting, e-commerce, and trading (no warehousing). RAKEZ: offers industrial/manufacturing facilities, warehousing, and physical business spaces alongside service licenses. For anything requiring physical operations, RAKEZ wins.
Banking
IFZA has better banking relationships due to its Dubai location. RAK Bank and Emirates NBD onboard IFZA clients relatively smoothly. RAKEZ companies may face slightly more scrutiny but RAK Bank is generally accommodating.
Relevant Free Zones
Frequently Asked Questions
Is IFZA or RAKEZ cheaper?
Very similar. IFZA license starts at AED 5,750 vs RAKEZ at AED 7,500. But total costs including visa and renewals are within AED 1,000-2,000 of each other. IFZA is slightly cheaper for service businesses, RAKEZ can be cheaper for industrial operations.
Which has better banking — IFZA or RAKEZ?
IFZA generally has easier banking due to its Dubai location. Both work well with RAK Bank. For other banks, IFZA's Dubai address gives an edge in the application process.
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