Founders pick a free zone on year-one license fee, then discover year-two costs that change the equation. Here is the honest comparison for the three zones we see most often: IFZA (Dubai, the volume player), DMCC (Dubai, the premium option), and Meydan (Dubai, the mid-tier with the prestigious postcode).
Year-one all-in, like for like
One activity, one shareholder, one visa, flexi-desk where required. Approximate 2026 numbers in AED.
| Line item | IFZA | DMCC | Meydan |
|---|---|---|---|
| License (entry tier) | From 12,900 | From 22,000 | From 16,000 |
| Flexi-desk (mandatory) | 0 (included in some tiers) | From 10,500 | From 5,500 |
| Establishment Card | 2,000 | 2,500 | 2,000 |
| Visa quota (1 person) | From 3,500 | From 4,000 | From 3,000 |
| Investor visa & EID | From 5,000 | From 5,500 | From 4,800 |
| Year-one total | ~AED 23,000+ | ~AED 44,000+ | ~AED 31,000+ |
That is the marketing comparison. The real comparison is on year two.
Year two and the hidden line items
1. Audit requirement
DMCC requires an audited financial statement annually, due 90 days after year-end. Cost: AED 6,000 to AED 18,000 depending on size and auditor. IFZA does not mandate an audit unless you are a regulated activity. Meydan requires an audit for renewal but is more flexible on timing.
2. License renewal
License renewal in DMCC is roughly the same as the initial license. IFZA renewal pricing has been creeping up (~10% to 15% per year on entry tiers). Meydan renewals are stable.
3. Flexi-desk renewal
DMCC's flexi-desk renewal is annual at full price. IFZA's "free flexi-desk" tiers limit you on add-on visas; if you grow past one person you may need a paid office, which can add AED 15,000 to AED 40,000+ per year.
4. Activity changes and add-ons
Adding a second activity in DMCC is AED 3,000 to AED 6,000 plus pro-rata license fee. In IFZA, additional activities under the same group are often free or low-cost; outside the group, more expensive. Meydan is mid-range.
5. Bank account opening
All three are accepted by UAE banks. DMCC is the most readily accepted by international banks (HSBC, Standard Chartered) because of the LBMA-style rigour. IFZA accounts can sometimes face extra scrutiny at HSBC for "low cost" perception, though Mashreq and ENBD are fine. Meydan sits between.
Where each one wins
IFZA wins on
- Pure cost. AED 12,900 entry is genuinely the cheapest credible Dubai free zone.
- Solo founders who need 0 to 1 visa and a simple service activity.
- Speed. Incorporation in 5 to 7 working days for a clean file.
DMCC wins on
- Banking reputation, especially for international clients.
- Commodity trading (gold, diamonds, tea, coffee, oil) where DMCC's regulatory framework is purpose-built.
- Teams of 5+ where the office space is needed anyway.
- VC-backed startups where investors expect a recognised brand on the cap table.
Meydan wins on
- The Dubai postcode without the DMCC premium.
- Holding company and IP holding structures.
- Founders who want one visa included and a credible flexi-desk without DMCC's price tag.
If you are a solo service founder under AED 1M revenue, IFZA. If you are a 5+ person team with commodity trading or VC backing, DMCC. If you are a holding company or IP holder with one or two visas, Meydan. The price gap closes once you factor in audit fees, mandatory office space, and growth headroom.
Two zones we did not cover but get asked about
RAKEZ from around AED 14,000 is the strongest non-Dubai option, with all-inclusive packages bundling one visa. Banks are increasingly comfortable. Useful for founders who do not need Dubai presence.
AFZ (Ajman) from around AED 11,000 is the cheapest credible UAE option, with one visa included and a flexible activity list. The downside is the longer drive for Dubai banking meetings; the upside is the lowest year-one bill in the country.
How we run the comparison for a real client
We ask four questions in this order.
- How many visas in year one and year three? Tells us whether the included-visa packages save real money or just shift the cost.
- Who do you invoice and from where? If your customers are mostly outside the UAE, any of the three works. If your customers include UAE government bodies, none of these is right (you need Mainland).
- What is your expected first-year revenue? Below AED 1M, IFZA almost always wins on cost. Above AED 5M, the audit and admin fees compress the gap and the brand value of DMCC becomes credible.
- Do you need a recognised brand for investor or banking purposes? If yes, DMCC. If no, the cheaper zones do the job.
We have run this conversation with around 90 UK founders in the last 18 months. The split is roughly 55% IFZA, 25% DMCC, 12% Meydan, and the remaining 8% across RAKEZ, AFZ, Shams, and the Sharjah free zones. The bias toward IFZA reflects the volume of solo and small-team service founders we see; the DMCC share rises sharply once we filter for teams of 5+ or for any client expecting institutional investors.
The line items that really matter on year two
If you are looking at the marketing pages and only comparing year-one license fees, you are missing the four items that change the running total:
- Audit cost (zero in IFZA for most activities; AED 6,000 to AED 18,000 in DMCC; rising in Meydan from 2025).
- Office or flexi-desk renewal (often the biggest year-two line item).
- Visa renewals (each visa renewal is roughly AED 3,500 to AED 5,500 plus medical, EID, insurance).
- Activity additions or amendments (varies wildly by zone; DMCC the most rigid, IFZA the most flexible).
Sum those four for years 2 and 3 alongside the headline license cost. The picture often inverts.