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RAKEZ Free Zone 2026: The UAE's Cheapest Industrial + Commercial Setup

RAKEZ — Ras Al Khaimah Economic Zone — offers the UAE's lowest-cost free zone setup from AED 11k. Industrial, commercial, and educational activities, packages, and process.

Ahmed Khoury · Business Setup Director 22 January 2026 9 min read

RAKEZ — the Ras Al Khaimah Economic Zone — is the UAE's most affordable free zone, with packages from AED 11,000 and the country's largest catalogue of industrial activities. If you need a workshop, warehouse, or factory at the lowest possible cost, this is where to start.

Why RAKEZ exists and who it's for

Ras Al Khaimah is the UAE's industrial-focused emirate, and RAKEZ consolidates several previous free zones (RAK FTZ, RAK IFZA, etc.) into one authority spanning four major zones — Business, Industrial, Academic, and Al Hamra Industrial. RAKEZ licenses over 50 nationalities, hosts 21,000+ companies, and offers something most Dubai free zones can't: large industrial plots from AED 25 / sqm / year.

Who RAKEZ works best for

  • Manufacturers needing industrial land or warehouses.
  • E-commerce sellers wanting low-cost warehousing close to Jebel Ali port.
  • Educational institutions (RAKEZ has a dedicated Academic Zone with a customised licence).
  • Cost-sensitive consultancies and service firms.
  • Holding companies and SPVs.
  • Freelancers wanting the cheapest UAE residence visa.

2026 packages

PackageVisa QuotaActivitiesAnnual Fee (AED)
RAKEZ Coworking Lite0Up to 311,015
Coworking 1 Visa1Up to 314,560
Shared Desk 3 Visas3Up to 322,000
Executive Office4–6Up to 532,000+
Industrial Land (per sqm/year)Quota by areaIndustrialFrom 25
Warehouse (200 sqm)Quota by areaTrading / industrialFrom 60,000

Activity types

LicenceExamples
CommercialGeneral trading, e-commerce, import/export
ServiceConsultancy, IT, marketing, professional services
IndustrialManufacturing, assembly, packaging
EducationalSchools, training centres, universities
MediaContent creation, broadcasting, publishing
FreelancerSingle-activity solo permit

Step-by-step setup

  1. Choose your zone (Business or Industrial), package, and activities.
  2. Submit online application with passport, photo, and shareholder documents.
  3. Receive initial approval — 2–4 working days.
  4. Pay licence fee and sign lease for office or land.
  5. RAKEZ issues trade licence, certificate of incorporation, and share certificate.
  6. Apply for establishment card and immigration quota.
  7. Visa applications: entry permit, status change (if inside UAE), medical, Emirates ID, stamping.

Cost of a 1-visa coworking setup

ItemFee (AED)
RAKEZ Coworking 1 Visa package14,560
Establishment card1,200 (often included)
Entry permit1,100
Status change (if applicable)650
Medical fitness320
Emirates ID (2 years)270
Visa stamping650
Service / typing500

Realistic year-1 total: AED 18,000 – 21,000. Year-2 renewal drops to ~AED 16,000 since visa stamping is biennial.

RAKEZ Industrial advantage

The Industrial Zone (Al Ghail and Al Hamra) is the standout: large plots, deep-water port proximity (Saqr Port), and energy costs lower than any Dubai free zone. Specific advantages:

  • Industrial land from AED 25 per sqm per year (compare AED 80–200 in Dubai).
  • Pre-built warehouses with loading docks from AED 60,000 / year (200 sqm).
  • Saqr Port handles bulk cargo, building materials, and minerals.
  • Residential cluster nearby for blue-collar workforce accommodation.
  • Customs duty exemption on imported raw materials.

Limits and trade-offs

  • Office address is in Ras Al Khaimah — clients in Dubai may perceive it as further from the centre of business.
  • Some banks are slower with RAKEZ companies — RAK Bank and Wio are fastest, international banks are stricter.
  • Direct UAE-local retail still requires a dual licence or distributor.
  • The freelance permit is single-activity only.

Frequently asked questions

Is RAKEZ a real free zone or just a marketing brand?

RAKEZ is the official Ras Al Khaimah free zone authority — a federal-level recognised zone with full UAE residence visa rights, VAT framework participation, and tax treaty access.

How long does setup take?

Documents-ready to licence: 7–10 working days. Add 2–3 weeks for visa stamping.

Can I get a Dubai address with a RAKEZ licence?

Not as your registered address — but you can rent a separate Dubai meeting room or virtual address through a coworking provider for client-facing purposes.

Does RAKEZ qualify for 0% corporate tax?

Yes — RAKEZ companies meeting the qualifying free zone person criteria pay 0% on qualifying income, 9% on non-qualifying mainland income above AED 375k.

Can I switch from RAKEZ to a Dubai free zone later?

Yes, but it's a new registration plus old-licence cancellation. Plan for AED 25,000 – AED 40,000 in switching costs.

Does RAKEZ allow corporate shareholders from outside the UAE?

Yes — corporate shareholders allowed from any jurisdiction, with parent documents notarised and attested.

How we help

Visa Simplified is a registered RAKEZ partner. We handle activity selection, package recommendation, application, leasing, visa quotas, and bank account opening. See our business setup service. If you're weighing options, also read our comparison of Mainland vs Free Zone to confirm RAKEZ fits your model.

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Need help with this?

Our PRO consultants handle the full process end-to-end — documents, government submission, and delivery. Service fee is fully refundable pre-submission.