Free Zone Comparison
ADGM vs IFZA
Among entry-level packages, ADGM's Tech Startup Licence at AED 5,505 is the cheapest way into a common-law jurisdiction in the UAE — less than half of IFZA's AED 12,900. But once you add workspace for visa eligibility, ADGM's 1-visa total hits AED 38,350 versus IFZA's AED 28,790. That AED 9,560 you saved on the licence disappears — and then some.
ADGM
Abu Dhabi
AED 5,505
Year 1 from
CheaperIFZA
Dubai
AED 12,900
Year 1 from
Quick Verdict
Pick ADGM for common-law credibility. Pick IFZA to save AED 9,560 with a visa.
- ● Choose ADGM if cost is your priority — AED 7,395 cheaper in Year 1
- ● Choose IFZA if you need more visas — up to 15
- ● Choose ADGM for faster setup — 14 days processing
- ● Both offer 100% foreign ownership with no local sponsor required
Our Analysis
IFZA issues licences in 2-5 business days through a fully digital portal — no physical visit required. ADGM takes approximately 2 weeks and requires workspace on Al Maryah Island for visa eligibility. IFZA's agent model means your setup can be handled remotely, often landing Year 1 costs below AED 12,900 through Professional Partners. ADGM's Registration Authority process is more formal, with e-KYC but longer turnaround. For speed of incorporation, IFZA wins.
Where ADGM earns its premium is legal infrastructure. English common law, independent courts, and the FSRA financial regulator give your company a credibility layer that IFZA — operating under UAE commercial law — cannot replicate. Forum discussions suggest VCs and international funds prefer ADGM-registered entities because the legal framework is familiar to global investors. IFZA supports up to 15 visas versus ADGM's 10, giving more scaling headroom. But if your growth plan involves raising capital, ADGM's regulatory framework can tip a funding decision. Consultants often recommend starting at IFZA for proof of concept and migrating to ADGM when investor conversations begin.
ADGM vs IFZA at a Glance
| Metric | ADGM | IFZA |
|---|---|---|
| Emirate | Abu Dhabi | Dubai |
| Year 1 From | AED 5,505 🏆 | AED 12,900 |
| Renewal From | AED 5,505 🏆 | AED 12,900 |
| Rating | ★ 3.8/5 | ★ 4.0/5 🏆 |
| Max Visas | 10 | 15 🏆 |
| Processing Time | 14 days 🏆 | 21 days |
| Banking | Moderate | Moderate |
| Established | 2013 | 2018 |
| Companies | 11,128+ | 5,000+ |
Year 1 From
ADGM
AED 5,505
IFZA
AED 12,900
Renewal From
ADGM
AED 5,505
IFZA
AED 12,900
Rating
ADGM
3.8/5
IFZA
4.0/5
Max Visas
ADGM
10
IFZA
15
Processing
ADGM
14 days
IFZA
21 days
Banking
ADGM
Moderate
IFZA
Moderate
Package Pricing Breakdown
ADGM Packages
Abu Dhabi · 4 packages
Tech Startup Licence (0 Visa)
No visa · None
AED 5,505
Year 1
Renewal: AED 5,505/yr
Non-Financial LTD (0 Visa)
No visa · None
AED 21,286
Year 1
Renewal: AED 21,286/yr
1 Visa Package
Up to 1 visa · Flexi Desk
AED 38,350
Year 1
Renewal: AED 35,113/yr
2 Visa Package
Up to 2 visas · Flexi Desk
AED 42,287
Year 1
Renewal: AED 35,813/yr
IFZA Packages
Dubai · 4 packages
Zero Visa Package
No visa · Flexi Desk
AED 12,900
Year 1
Renewal: AED 12,900/yr
1 Visa Package
Up to 1 visa · Flexi Desk
AED 28,790
Year 1
Renewal: AED 24,400/yr
2 Visa Package
Up to 2 visas · Flexi Desk
AED 36,380
Year 1
Renewal: AED 27,400/yr
3 Visa Package
Up to 3 visas · Flexi Desk
AED 43,970
Year 1
Renewal: AED 29,400/yr
Feature Comparison
| Feature | ADGM | IFZA |
|---|---|---|
| Mainland Trading | ✗ No | ✗ No |
| Physical Office Required | Required | Not Required |
| Dual License | ✓ Yes | ✗ No |
| Crypto Friendly | ✓ Yes | ✗ No |
| Online Portal | ✓ Yes | ✓ Yes |
| Co-working | ✓ Yes | ✓ Yes |
| Audit Required | Required | Required |
Who Should Choose Which?
Choose ADGM if you...
- ✓ Want financial services
- ✓ Want fintech
- ✓ Want wealth management
- ✓ Want family offices
- ✓ Want regulated firms
- ✓ Want the lowest cost option (AED 7,395 less)
Choose IFZA if you...
- ✓ Want freelancers
- ✓ Want startups
- ✓ Want e-commerce
- ✓ Want consulting
- ✓ Want digital nomads
Pros & Cons
ADGM
Pros
- ✓ Independent common-law jurisdiction with English-language courts — strong legal certainty for international businesses
- ✓ Tech Startup Licence from AED 5,505/year — discounted entry for eligible tech companies
- ✓ FSRA-regulated crypto and virtual asset framework with over 20 licensed firms
- ✓ No minimum share capital requirement for most non-financial entity types
Cons
- ✗ Higher workspace costs on Al Maryah Island — co-working from AED 12,000/year, offices significantly more
- ✗ Non-financial commercial licence (LTD) starts at AED 21,286/year — premium pricing
- ✗ Abu Dhabi location may be inconvenient for businesses focused on Dubai clients
- ✗ FSRA-regulated activities carry substantial compliance costs beyond licence fees
IFZA
Pros
- ✓ Lowest all-in Dubai free zone option — Year 1 with 1 visa achievable under AED 25,000 through agents
- ✓ No physical office requirement — virtual/flexi desk options available
- ✓ Fast license issuance: 2–5 business days
- ✓ Up to 7 business activities per license (first 3 included free, extras AED 1,000 each)
Cons
- ✗ B2B-only model — must work through intermediary agents, direct pricing significantly inflated
- ✗ Relatively young (Dubai presence since 2020) with weaker brand recognition than DMCC
- ✗ Only ~5,000 companies — smaller networking ecosystem
- ✗ Limited crypto licensing (no exchange/custody activities)
Still not sure?
Try our calculator to find the cheapest free zone for your specific requirements, or get a personalised quote.
Frequently Asked Questions
What's the real Year 1 cost with a visa at ADGM vs IFZA?
ADGM's 1-visa package totals AED 38,350 (licence AED 21,286 + workspace AED 12,000 + establishment card AED 1,127 + visa AED 3,237 + insurance AED 700). IFZA's totals AED 28,790 (licence AED 14,900 + flexi desk AED 6,300 + establishment card AED 2,000 + visa AED 4,590 + insurance AED 1,000). IFZA saves AED 9,560.
Does ADGM's common-law framework actually matter for my business?
Yes — if you're raising VC investment, structuring funds, or dealing with international counterparties who value English-law contracts and independent courts. No — if you're a solo consultant or freelancer. For most bootstrapped startups, IFZA's UAE commercial law is perfectly adequate.
Is ADGM or IFZA better for crypto businesses?
ADGM. Its FSRA regulates virtual asset activities with a comprehensive framework and 20+ licensed firms. IFZA allows crypto consulting and advisory only — no exchange or custody activities. For regulated crypto, ADGM is one of two options in the UAE alongside DIFC.
Can I scale my team faster at ADGM or IFZA?
IFZA supports up to 15 visas with office upgrades. ADGM supports up to 10. IFZA also processes faster — licences in 2-5 days versus ADGM's ~2 weeks. For hiring speed and visa headroom, IFZA has the edge.
Which is cheaper, ADGM or IFZA?
ADGM is cheaper by AED 7,395 in Year 1. ADGM starts from AED 5,505 while IFZA starts from AED 12,900. However, the cheaper option may not include the same features — check the full comparison above for details.
What is the main difference between ADGM and IFZA?
ADGM is based in Abu Dhabi and is best for Financial Services, FinTech, Wealth Management. IFZA is based in Dubai and is best for Freelancers, Startups, E-commerce. ADGM starts from AED 5,505 while IFZA starts from AED 12,900.
Which has easier banking, ADGM or IFZA?
Both ADGM and IFZA are rated "Moderate" for banking difficulty, meaning there is no significant difference in how easily you can open a corporate bank account.
How many visas can I get with ADGM vs IFZA?
ADGM supports up to 10 visas, while IFZA supports up to 15 visas. IFZA offers more visa capacity.
Is ADGM or IFZA better for my business?
It depends on your priorities. Choose ADGM if you want financial services focus and lower costs. Choose IFZA if you need freelancers support and a Dubai address. Use our calculator to find the best match for your specific requirements.