Best Free Zone for an IT or Software Company in the UAE (2026)
The best free zone for an IT or software company depends on what you want from the zone. Dubai Internet City and Dubai Silicon Oasis offer tech communities and facilities, Meydan offers a Dubai licence with a wide activity list from AED 12,500, and RAKEZ and SPC offer lower entry costs outside Dubai.
Key takeaways
- EZONE starting packages for tech-friendly zones run from AED 5,750 (SPC) to AED 15,540 (Dubai Internet City).
- Dubai Internet City licenses only FZ-LLC companies and branches, and its licence is valid inside the zone unless you add a dual licence.
- Meydan lists over 2,500 activities, including an ICT category, and its standard licence includes a flexi-desk.
- Check your exact activity on the zone’s list before you pay.
Free Zones for IT and Software Compared
| Free zone | EZONE starting package | What the zone says | Check before you choose |
|---|---|---|---|
| Dubai Internet City | AED 15,540 | Licenses FZ-LLC companies and branches. Tech freelancers use GoFreelance. | Your software activity code, and a dual licence if clients are outside the zone. |
| Dubai Silicon Oasis | AED 15,500 | Serves start-ups, scale-ups and SMEs, with 11 clusters including AI and IoT, robotics, cybersecurity and Web 3.0. Offers co-working, offices and R&D facilities. | Whether your product fits one of its clusters. |
| Meydan Free Zone | AED 12,500 | Over 2,500 activities, three activity groups on one licence, flexi-desk included. Its Fawri licence is issued in 60 minutes from AED 15,000. | Visa costs: Meydan lists an investor visa from AED 4,000. |
| RAKEZ | AED 6,010 | Service and e-commerce licences. A flexi-desk is limited to one visa. | Visas follow workspace, so a team needs more than a flexi-desk. |
| SPC | AED 5,750 | Says it supports more than 2,000 activities, including technology. | Visa fees and office space are extra. |
Our Pick for a Dubai Software Start-Up
For most small software companies that want a Dubai licence, Meydan is our usual recommendation. It combines a low starting price, a wide activity list and a flexi-desk in the standard licence. If your product sits inside a tech cluster and you want the ecosystem, compare Dubai Internet City and Dubai Silicon Oasis. If cost matters most and you do not need a Dubai address, look at RAKEZ or SPC.
What to Check Before You Pick
- Your activity. Software development, SaaS, IT consulting and app publishing can sit under different activity codes.
- Where your clients are. A free zone company cannot trade freely with UAE customers. See our guide to operating a free zone company on the mainland and the dual licence option.
- Visas. Count your team, because workspace sets the visa quota.
- Tax. A free zone company gets 0% Corporate Tax only on qualifying income. Read about qualifying free zone persons.
- Banking. Banks assess the business model, see corporate bank account opening.
How Each Zone Works Day to Day
The comparison table gives the headline facts. These notes add what the zones say about the way they operate.
Dubai Internet City
Dubai Internet City issues licences only for two kinds of entity: a new Free Zone Limited Liability Company (FZ-LLC) or a branch of an existing foreign or UAE company. Its licence is valid for operating inside the zone.
To work with clients elsewhere in Dubai, an FZ-LLC can add a dual licence under Law 13. Transferring a licence from another free zone is possible with approval from the Dubai Development Authority.
Dubai Silicon Oasis
Dubai Silicon Oasis describes itself as a specialised economic zone for knowledge and innovation. It names 11 industry clusters, including AI and IoT, robotics, cybersecurity, Web 3.0, 3D printing and future mobility.
It offers co-working spaces, offices, boutique office buildings and R&D facilities. It also hosts the Dubai Technology Entrepreneurship Campus and testing zones for drones and autonomous vehicles.
Meydan Free Zone
Meydan lists over 2,500 activities in 17 licence categories, including ICT, professional services and trading. One licence can combine three activity groups.
The standard licence includes a flexi-desk, and the Fawri licence is issued in 60 minutes from AED 15,000. Meydan also says you can obtain a no-objection certificate to operate on the mainland with DET approval.
RAKEZ and SPC
RAKEZ offers service and e-commerce licences with a one-year term and a discounted three-year option on some types. A flexi-desk there is limited to one visa.
SPC says it supports more than 2,000 activities, and that visas are paid for as you allocate them. Both zones suit developers who work with clients abroad and want a low fixed cost.
Setting Up a Software Company Step by Step
- Define the product and the client. Decide whether you build software for clients, sell a product or provide IT services.
- Match the activity. Software development, SaaS, IT consulting and app publishing can fall under different codes.
- Choose the zone. Use the table above and consider where your customers are.
- Apply for the licence. EZONE prepares the forms, and you sign.
- Arrange workspace and visas. Count your developers, because workspace sets the quota.
- Open the bank account. Prepare client contracts and a clear description of how you earn.
- Register for tax. Corporate Tax registration is due within three months for companies incorporated on or after 1 March 2024.
Our first 30 days checklist shows how these steps fit together after the licence is issued.
Questions Specific to Software Companies
- Who are the customers? A free zone company that sells to UAE customers needs a dual or mainland licence. If your customers are abroad, a free zone licence is straightforward.
- How will you be paid? Banks ask about the source and countries of your income. Keep contracts and invoices ready.
- Who owns the code? Put intellectual property terms in your client contracts and employment agreements.
- Do you hold customer data? Data protection rules may apply to what you store and where. Ask a legal adviser if you handle personal data.
- Will you hire developers? Each employee needs a visa, which depends on your workspace.
Hiring Developers: Visas and Workspace
A flexi-desk usually allows one visa, so a team needs an office. Meydan publishes visa prices that show the scale: an employee visa from AED 3,500 and an investor visa from AED 4,000.
The establishment card is a further AED 2,000, and the medical test and Emirates ID add AED 2,250 for assistance. Budget these lines for every hire.
Dubai Internet City offers office space and Dubai Silicon Oasis offers co-working spaces and offices. Ask about the visa quota that comes with each space.
A First-Year Cost Picture
| Line | What to ask |
|---|---|
| Licence | Price for your activity and the number of activities allowed. |
| Workspace | Flexi-desk, co-working or office, and the visa quota that comes with it. |
| Visas | Price per visa, establishment card, medical test and Emirates ID. |
| Bank account | Bank fees and minimum balances. |
| Dual or mainland licence | Cost of adding one if you serve UAE clients. |
| Renewal | Licence and visa renewals in year two. |
The cost calculator adds these lines for your case, and our Dubai trade licence cost guide explains each one.
Mistakes Software Founders Make
- Choosing the tech-branded zone by default. A community helps only if you will use it. A lower-cost zone may suit a remote team.
- Assuming a free zone licence covers UAE clients. It does not, without a dual licence or an agent.
- Underbuying workspace. A flexi-desk blocks hiring when the first developers join.
- Using a vague activity description. The licence must match what you actually do.
- Forgetting tax records. Keep invoices and expense records from the first month.
Three Example Setups for Software Businesses
These illustrations show how the choice changes with the business. They are not quotes.
- A two-person SaaS start-up selling to overseas customers. Meydan or RAKEZ keeps the fixed cost low. A flexi-desk covers the licence, and they plan to upgrade when they hire.
- An AI or robotics company building a prototype. Dubai Silicon Oasis offers R&D facilities and clusters in AI and IoT, robotics and cybersecurity. They budget for a lab or office rather than a flexi-desk.
- A software agency building apps for UAE companies. A mainland licence or a dual licence lets them contract with local clients. They compare it with a free zone company plus a dual licence.
Questions to Choose Between the Main Zones
- Do I need the tech community, or only a licence and an address?
- Will my customers be in the UAE or abroad?
- How many developers will I hire in the first two years?
- Do I need lab or testing space?
- How important is a low fixed cost compared with the zone’s reputation?
If your answers are cost and a Dubai address, look at Meydan. If they are ecosystem and facilities, compare Dubai Internet City and Dubai Silicon Oasis.
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 renewal. Every year.
- Visa renewals. At the end of each visa term.
- Bank reviews. Banks may ask for updated documents when ownership or the licence changes.
Read our guides to corporate tax registration and trade licence renewal.
Common Questions From Founders
Can I start with a flexi-desk and upgrade later?
Yes. Many founders start with a flexi-desk and move to an office when they hire, so ask what the upgrade costs.
Do I need a UAE partner for a software company?
Not in a free zone, where 100% foreign ownership is standard. Most mainland activities now allow it as well.
Will clients pay a free zone company from abroad?
Overseas clients can contract with a free zone company, and the bank will want to see those contracts.
Prices are EZONE starting packages and the final cost depends on your activity, workspace and visas. See our cheapest free zone comparison, the cost calculator and our company formation services. For a mainland option, read about Dubai mainland business setup. Our sister site explains qualifying income for free zone Corporate Tax, and companyformationinuae.com has more guidance.
Summary: What to Remember
- Meydan is our usual recommendation for a small software company that wants a Dubai licence.
- Dubai Internet City and Dubai Silicon Oasis suit teams that want a tech community and facilities.
- RAKEZ and SPC keep fixed costs low if your customers are abroad.
- A free zone licence does not cover UAE customers without a dual or mainland licence.
- Visas follow workspace, so plan for the developers you will hire.
To start, book a free consultation and bring your product description.
Frequently Asked Questions
It depends on your needs. Dubai Internet City and Dubai Silicon Oasis suit companies that want a tech community. Meydan, from AED 12,500, suits start-ups that want a Dubai licence with a wide activity list.
Not freely. A free zone licence is valid in the zone. To work with UAE clients, you can use a dual licence where the zone offers one, or a mainland licence.
No. It licenses FZ-LLC companies and branches, and has a freelance permit for individuals. Confirm current packages with EZONE.
EZONE packages start from AED 5,750 at SPC, AED 6,010 at RAKEZ, AED 12,500 at Meydan and AED 15,540 at Dubai Internet City. Visas and workspace are extra.
A flexi-desk is enough for licensing in many zones, but it limits visas. Meydan's standard licence includes a flexi-desk.
Free zone companies get 0% only on qualifying income and must meet the conditions. Other income is taxed at the standard rate.
