RAKEZ is one of the UAE’s most affordable and versatile free zones, offering SME packages from AED 5,999 with flexible warehouse options in Ras Al Khaimah. RAKEZ supports over 15,000 companies across trading, services, industrial, and consulting activities. Its dual-licensing model allows founders to hold both a free zone licence and a mainland licence under one entity — a feature unique among UAE free zones. Last updated: May 2026.
For the broader free zone comparison, see GCC free zones explained: complete guide for foreign founders. For the cheapest UAE setups, see low-cost business setup in the UAE: the cheapest free zones in 2026.
Why do founders choose RAKEZ?
RAKEZ combines low cost, warehouse availability, and dual licensing in a single package. The zone is located near both Ras Al Khaimah International Airport and the RAK Ports cluster, making it a practical choice for trading businesses that need physical logistics at a fraction of Dubai’s cost.
Three structural advantages distinguish RAKEZ from competing budget zones:
- Dual licence — RAKEZ is one of the only UAE free zones that offers a combined free zone and mainland licence. This allows a single entity to sell both internationally (through the free zone) and directly to UAE mainland customers, eliminating the need for a separate mainland subsidiary. According to Shuraa’s 2026 comparison, this feature alone saves AED 15,000 to AED 30,000 in annual dual-entity costs.
- Warehouse infrastructure — RAKEZ operates industrial zones in Al Hamra and Al Ghail with warehouses from 200 sqm to large industrial plots. Rental costs are 30 to 50 % lower than equivalent space in Dubai’s JAFZA or DIP.
- Budget entry — SME packages starting from AED 5,999 make RAKEZ one of the cheapest free zone entry points in the UAE, competitive with Ajman and Sharjah zones.
What does RAKEZ cost in 2026?
| Component | Range |
|---|---|
| Trading licence (annual) | AED 6,000 to AED 15,000 |
| Service/consulting licence (annual) | AED 5,999 to AED 12,000 |
| Industrial licence (annual) | AED 8,000 to AED 20,000 |
| Flexi-desk (annual) | AED 8,000 to AED 12,000 |
| Warehouse (annual) | AED 25,000 to AED 150,000 (size-dependent) |
| Investor visa (per person, all-in) | AED 3,500 to AED 5,500 |
| Total first-year (service, 1 visa, flexi-desk) | AED 16,000 to AED 22,000 |
Year-two renewal costs are comparable to SHAMS and IFZA at approximately AED 18,500 to AED 22,500 per year, according to Dubai Business Services’ 2026 renewal cost analysis — roughly half the renewal cost of DMCC or JAFZA.
What licence types does RAKEZ offer?
RAKEZ issues four licence categories across two physical zones — RAKEZ Business Zone for services and consulting, and RAKEZ Industrial Zone (Al Hamra and Al Ghail) for manufacturing and warehousing.
- Commercial licence — general trading, import/export, e-commerce, distribution
- Service licence — consulting, IT, marketing, freelance activities
- Industrial licence — manufacturing, assembly, packaging, light industry
- Educational licence — training centres, educational consultancy
Activity additions cost AED 1,000 to AED 2,500 each. RAKEZ supports online activity amendments within hours — faster than most premium Dubai zones.
Who should choose RAKEZ — and who should not?
Choose RAKEZ if you need the cheapest UAE free zone licence with warehouse options; if dual licensing (free zone + mainland) is valuable; if you operate in trading, manufacturing, or light industry with a logistics component; or if you are a budget-conscious startup that does not need a Dubai address.
Do not choose RAKEZ if you need a Dubai address for branding purposes (IFZA or Meydan serve that at competitive pricing); if you require DIFC- or ADGM-level financial regulation; if banking ease is a priority (Dubai-based free zones have stronger bank relationships); or if your clients expect a premium positioning signal.
Frequently asked questions
Does RAKEZ qualify for 0 % corporate tax under QFZP?
RAKEZ is a Designated Free Zone. RAKEZ entities can apply for QFZP status if they meet all conditions under Ministerial Decision No. 229 of 2025. Qualifying income earned from free zone and international clients is taxed at 0 %. Non-qualifying mainland income is taxed at 9 %.
How does RAKEZ compare to IFZA?
RAKEZ is cheaper (AED 5,999 vs AED 12,900 at IFZA) but located in Ras Al Khaimah rather than Dubai. IFZA provides a Dubai registration address. RAKEZ offers physical warehouse infrastructure and dual licensing. IFZA offers a digital-first onboarding experience with stronger Dubai branding.
How fast is RAKEZ setup?
RAKEZ licence issuance takes 5 to 7 working days. Full setup with visa and bank account takes 4 to 8 weeks. Online activity amendments process within hours.
Sources and further reading
- RAKEZ — Official licensing, warehouse options, and dual-licence framework (rakez.com)
- Ministerial Decision No. 229 of 2025 — QFZP qualifying activities
- UAE Federal Tax Authority — Free zone tax treatment (tax.gov.ae)