Best Free Zone for a Trading Company in the UAE (2026)
The best free zone for a trading company depends on what you trade and where you sell. JAFZA suits goods and warehousing, DMCC suits commodities, and RAKEZ offers the lowest starting package. If most of your buyers are in the UAE, a mainland licence may fit better than any free zone.
Key takeaways
- EZONE starting packages run from AED 6,010 (RAKEZ) to AED 32,360 (DMCC).
- JAFZA says it has over 11,000 businesses and pre-built warehouses from AED 400 per square metre.
- DMCC says it hosts more than 26,000 companies and calls itself a leading hub for commodities.
- A free zone company can trade outside its zone within the UAE only through an agent, distributor or a licensed parent company.
Free Zones for Trading Compared
| Free zone | EZONE starting package | What the zone says | Check before you choose |
|---|---|---|---|
| RAKEZ | AED 6,010 | Issues commercial, general trading and industrial licences. General trading covers import, storage, warehousing, supply and export of permitted goods. | A commercial licence allows five activities from one group or two from different groups. |
| Meydan Free Zone | AED 12,500 | A Trading category is one of its 17 licence categories. | Warehouse needs, because it is an office-led zone. |
| JAFZA | AED 15,500 | Over 11,000 businesses in trading, logistics, manufacturing and warehousing. Describes itself as the largest customs bonded zone in the Middle East. | Warehouse size and lease rates for your goods. |
| DAFZ | AED 25,030 | Next to Dubai International Airport. Trade licences cover import, export, re-export, distribution and storage of specific products. | Its pages disagree on capital and fees, so confirm current terms. |
| DMCC | AED 32,360 | Says it hosts more than 26,000 companies and is a leading hub for commodities, with setup in around 10 working days. | Whether your product sits in a DMCC commodity ecosystem. |
Our Pick for a Dubai Trading Start-Up
For an early-stage trader that wants a Dubai licence and mainly deals with buyers abroad, Meydan from AED 12,500 is our usual recommendation. Choose JAFZA when you need warehouse space and customs-bonded storage, and DMCC when you trade commodities. RAKEZ is the lowest-cost route and has industrial space.
The Mainland Catch
A free zone company can trade within the UAE outside its zone only through an agent, representative, distributor or a parent company that holds the relevant licence. If you sell mainly to UAE retailers or consumers, compare the Dubai mainland licence from AED 14,626, the dual licence option and our guide to free zone to mainland conversion.
What to Check Before You Pick
- Your products. Food, health and some regulated goods need external approvals, see our trading licence guide.
- Storage. Decide whether you need a warehouse or a flexi-desk.
- Customs. Understand the customs code and your import route.
- Buyers. Decide whether they are in the zone, abroad or across the UAE.
How Each Zone Works Day to Day
The comparison table gives the headline facts. These notes add what each zone says about its trading offer.
RAKEZ
RAKEZ describes a commercial licence as covering trading in goods and a general trading licence as covering import, storage, warehousing, supply and export of permitted goods across several categories. An industrial licence covers manufacturing, packaging and assembling.
A commercial licence allows five activities from the same group or two from different groups. A flexi-desk is limited to one visa, so a trading team that holds stock needs a larger workspace.
Meydan Free Zone
Meydan has a Trading category among its 17 licence categories, covering sourcing, selling and distributing products. It is an office-led zone, so it suits traders who deal in goods held elsewhere.
The standard licence includes a flexi-desk. Meydan also says a no-objection certificate to operate on the mainland is available with DET approval.
JAFZA
JAFZA says it hosts over 11,000 businesses from more than 100 countries, with a focus on logistics, food and agriculture, petrochemicals, automotive and spare parts, and manufacturing. It describes itself as the largest customs bonded zone in the Middle East.
It lists pre-built warehouses with leasing from AED 400 per square metre, and a logistics park with 16 units and 46,112 square metres of leasable space. An FZE has a single shareholder.
DAFZ
DAFZ sits next to Dubai International Airport and says it hosts more than 3,400 businesses across over 20 sectors. A trade licence covers import, export, re-export, distribution and storage of specific products.
It offers fitted offices, co-working spaces and warehouses. Its pages disagree on capital and fees, so confirm the current terms before you plan.
DMCC
DMCC says it is home to more than 26,000 companies from over 180 countries and calls itself a leading hub for commodities. It says setup takes around 10 working days and ends with an e-licence.
It is a qualified free zone, which means companies can get 0% Corporate Tax on qualifying income if they meet the conditions.
Goods, Customs and Approvals
Trading adds steps that service companies do not face. Your activity and your products decide which ones apply.
- Customs registration. Importers need a customs code. See our guide to the trading licence and customs code.
- Product approvals. Food, health, cosmetics and some other goods need approvals from the relevant authority.
- Storage. Decide whether you will hold stock, and where.
- Licence scope. A general trading licence covers more categories than a specific trade licence, so check what yours allows.
Our trading licence guide explains the main types.
Setting Up a Trading Company Step by Step
- List the products. Write the categories you will import, store and sell.
- Match the licence. Choose between a specific trade licence and a general trading licence.
- Choose the zone. Use the table above and consider your buyers.
- Apply and add approvals. EZONE prepares the forms and asks about product approvals.
- Arrange workspace and visas. Decide between a flexi-desk and a warehouse.
- Register with customs and open the bank account. Prepare supplier and customer details.
- Register for tax. Corporate Tax registration is due within three months for companies incorporated on or after 1 March 2024.
Questions Specific to Traders
- Where do your buyers sit? Buyers in the UAE need a dual or mainland licence, an agent or a distributor. Buyers abroad can be served from a free zone.
- Will you hold stock? Stock needs warehouse space and may change your visa quota.
- How will you pay suppliers? Banks ask about suppliers, goods and shipping routes, so keep invoices and contracts ready.
- What about VAT? VAT registration is mandatory above AED 375,000 of turnover, and the rules for goods in free zones have their own conditions. Read our VAT registration guide.
- Do you need a mainland shop later? A conversion is possible. See free zone to mainland conversion.
A First-Year Cost Picture
| Line | What to ask |
|---|---|
| Licence | Price for your trade category and the number of activities allowed. |
| Warehouse or desk | Lease rate, minimum size and the visa quota that comes with it. |
| Visas | Price per visa, establishment card, medical test and Emirates ID. |
| Customs and approvals | Registration costs and any product approval fees. |
| Dual or mainland licence | The cost of selling to UAE buyers. |
| Renewal | Licence, lease and visa renewals in year two. |
Meydan’s published visa prices show the scale of the extras: an employee visa from AED 3,500, an investor visa from AED 4,000 and an establishment card at AED 2,000. The cost calculator adds these lines for your case.
Mistakes Traders Make
- Choosing by price alone. A cheap licence helps only if it covers your goods.
- Selling to the UAE from a free zone. This needs a dual licence, an agent or a mainland licence.
- Underestimating storage. Warehouse costs can exceed the licence.
- Skipping product approvals. Goods held up at customs cost money every day.
- Forgetting the bank. Banks look hard at trading flows. Read about corporate bank account opening.
Three Example Setups for Traders
These illustrations show how the choice changes with the business. They are not quotes.
- A small importer of consumer goods selling to UAE retailers. A mainland licence fits, because the buyers are local. The importer budgets for premises, customs registration and product approvals.
- A commodity trader with buyers abroad. DMCC fits the commodities ecosystem. The trader checks the activity and the qualifying income rules for Corporate Tax.
- A distributor holding stock for re-export. JAFZA offers warehouses and logistics space. The company budgets for a lease and the staff visas that come with it.
Questions to Choose Between JAFZA, DMCC and RAKEZ
- Do I hold stock, and how much space do I need?
- Do I trade commodities or general goods?
- Are my buyers in the UAE, in the region or further away?
- How important is the lowest starting price?
- Do I need an industrial licence as well as a trading licence?
If your answers are stock and logistics, compare JAFZA and RAKEZ. If they are commodities, look at DMCC, and if cost and a Dubai address matter most, look at Meydan.
After Launch: A Compliance Calendar
Registrations and renewals arrive on a schedule. Put these dates in a shared calendar from day one.
- Corporate Tax registration. Within three months of incorporation for companies incorporated on or after 1 March 2024.
- VAT registration. When taxable turnover passes AED 375,000 over the previous 12 months, or you expect it to within 30 days.
- Licence and lease renewal. Every year.
- Visa renewals. At the end of each visa term.
- Customs and approvals. Renew any registration or approval before it lapses.
Read our guides to corporate tax registration and trade licence renewal.
Common Questions From Founders
Can I start with a flexi-desk and add a warehouse later?
Yes, if you do not hold stock at the start. Ask what the lease and the visa quota look like when you add space.
Do I need a UAE partner for a trading company?
Not in a free zone, where 100% foreign ownership is standard. Most mainland activities allow it as well.
Can I re-export goods through a free zone?
Many trade licences cover re-export, but check that your product category and your licence wording match.
Prices are EZONE starting packages and the final cost depends on activity, workspace and visas. See the cheapest free zone comparison, the cost calculator and our company formation services. Our sister site explains what a general trading licence actually covers, and companyformationinuae.com has more guidance.
Summary: What to Remember
- RAKEZ has the lowest starting package at AED 6,010, and DMCC the highest at AED 32,360.
- JAFZA suits warehousing and logistics, and DMCC suits commodities.
- Meydan is our usual recommendation for an early-stage trader with buyers abroad.
- A free zone company needs an agent, distributor, dual licence or mainland licence to sell in the UAE.
- Plan for customs registration, product approvals and storage costs.
To start, book a free consultation and list your products.
Frequently Asked Questions
It depends on your goods and buyers. JAFZA suits goods and warehousing, DMCC suits commodities, and RAKEZ offers the lowest starting package at AED 6,010.
Only through an agent, distributor or a parent company with the relevant licence, unless it holds a dual or mainland licence.
Not always. You can start with a flexi-desk if you do not hold stock, but goods you store need warehouse space. JAFZA lists warehouses from AED 400 per square metre.
A licence covering import, storage, warehousing, supply and export of permitted goods across multiple categories, as RAKEZ describes it. Check the exact scope with the zone.
EZONE packages start from AED 6,010 at RAKEZ, AED 12,500 at Meydan, AED 15,500 at JAFZA, AED 25,030 at DAFZ and AED 32,360 at DMCC. Warehouse and visas are extra.
Often yes if most of your customers are in the UAE. A Dubai mainland package starts from AED 14,626.
