JAFZA vs IFZA vs RAKEZ vs Medan: Comparison for Business Setup
Introduction: Why Free Zones Are Ideal for Business Setup in UAE
The UAE is home to over 40 free zones, each designed to attract global entrepreneurs by offering 100% ownership, tax exemptions, and simplified company registration. Among the most popular choices are JAFZA, IFZA, RAKEZ, and Medan, each catering to different business needs. If you’re planning a jafza company setup or wondering about ifza vs rakez, this detailed comparison will help you decide the best free zone for your business.
Overview of UAE’s Popular Free Zones
JAFZA (Jebel Ali Free Zone Authority)
Established in 1985, JAFZA is one of the oldest and largest free zones in the UAE. Located near Jebel Ali Port and Al Maktoum International Airport, it’s ideal for logistics, shipping, and multinational corporations.
IFZA (International Free Zone Authority)
IFZA, based in Dubai Silicon Oasis, is known for affordable licenses, flexible business packages, and quick setup processes. It attracts startups, consultants, and SMEs due to its cost-effectiveness.
RAKEZ (Ras Al Khaimah Economic Zone)
RAKEZ is one of the most budget-friendly free zones, offering competitive packages for entrepreneurs and manufacturers. It’s popular among freelancers, SMEs, and industrial companies.
Medan Free Zone (Dubai)
Medan Free Zone is a newer business hub located in Dubai. It’s designed for e-commerce, service providers, and entrepreneurs seeking quick licensing options at competitive prices.
Benefits of Free Zone Company Setup
- 100% Foreign Ownership – No need for a local sponsor.
- Tax Advantages – Zero corporate and personal tax in most cases.
- Streamlined Licensing – Fast online application and approvals.
- Repatriation of Profits – Full capital and profit repatriation allowed.
JAFZA Company Setup: Features & Costs
- Business Activities: Trading, manufacturing, logistics, industrial operations.
- Location: Strategic access to Jebel Ali Port and Al Maktoum Airport.
- License Types: Trading, industrial, service, e-commerce.
- Setup Costs: Starting from AED 15,000 – AED 50,000, depending on license type and office space.
IFZA Company Setup: Features & Costs
- Business Activities: Consultancy, service, general trading, e-commerce.
- Location: Dubai Silicon Oasis, close to Dubai city center.
- License Types: Professional, commercial, industrial, e-commerce.
- Setup Costs: Starting from AED 12,000 – AED 18,000, one of the most affordable in Dubai.
RAKEZ Company Setup: Features & Costs
- Business Activities: Trading, manufacturing, freelancing, media.
- Location: Ras Al Khaimah, with access to seaports and highways.
- License Types: Commercial, educational, industrial, media.
- Setup Costs: Starting from AED 6,000 – AED 15,000, making it the cheapest among the four.
Medan Company Setup: Features & Costs
Business Activities: E-commerce, consultancy, startups.
- Location: Dubai, with fast access to major highways and business districts.
- License Types: Professional, commercial, e-commerce.
- Setup Costs: Starting from AED 10,000 – AED 14,000, with competitive packages for entrepreneurs.
JAFZA vs IFZA vs RAKEZ vs Medan: Comparison Table
| Feature | JAFZA | IFZA | RAKEZ | Medan |
|---|---|---|---|---|
| Best For | Multinationals & logistics | Startups & SMEs | Freelancers & cost-savvy businesses | E-commerce & new startups |
| Location | Near Jebel Ali Port | Dubai Silicon Oasis | Ras Al Khaimah | Dubai |
| Ownership | 100% foreign ownership | 100% foreign ownership | 100% foreign ownership | 100% foreign ownership |
| Cost Range | AED 15k – 50k | AED 12k – 18k | AED 6k – 15k | AED 10k – 14k |
| License Types | Trading, industrial, e-commerce | Commercial, professional | Industrial, media, trading | Commercial, e-commerce |
| Key Strength | Global trade access | Low-cost setup in Dubai | Cheapest setup | Quick licensing in Dubai |
Which Free Zone is Best for Your Business?
- Best for Trading & Logistics: JAFZA
- Best for Startups & SMEs: IFZA
- Best for E-commerce & Freelancers: Medan
- Best for Cost-Effectiveness: RAKEZ
Common Mistakes to Avoid When Choosing a Free Zone
- Selecting based only on cost, without considering location.
- Ignoring renewal fees and hidden charges.
- Choosing a free zone that doesn’t support your business activity.
Conclusion: Making the Right Choice for Your Company
Choosing between JAFZA, IFZA, RAKEZ, and Medan depends on your business size, budget, and goals. JAFZA is best for large-scale trade, IFZA for startups in Dubai, RAKEZ for budget-friendly setups, and Medan for e-commerce and fast licensing.
FAQs on JAFZA, IFZA, RAKEZ, and Medan
Which free zone is cheapest in UAE?
RAKEZ offers the lowest-cost packages starting at AED 6,000.
Can I operate across UAE with a free zone license?
Free zone companies usually operate internationally and within the free zone. For mainland access, a local distributor or DED license is required.
How long does setup take in these free zones?
IFZA, RAKEZ, and Medan setups can be completed in 3–7 business days, while JAFZA may take longer due to its size and compliance.
Which free zone is best for e-commerce businesses?
Medan and IFZA are ideal for e-commerce and digital startups.
Can I open a corporate bank account easily?
Yes, all four zones allow banking, but larger free zones like JAFZA have stronger international credibility.
Which free zone is best for global expansion?
JAFZA, due to its port and airport connectivity, is the best for international trade.