Free Zone Comparison
Dubai South vs RAKEZ
If you're a first-time founder weighing Dubai prestige against budget reality, this is the matchup. Dubai South starts at AED 12,500. RAKEZ starts at AED 6,000 — half the cost, with dual licensing and 5-day visa processing thrown in. The trade-off: RAKEZ sits in Ras Al Khaimah, an hour from Downtown Dubai, and Dubai South puts you next to Al Maktoum Airport with logistics infrastructure you can't replicate from RAK.
Dubai South
Dubai
AED 12,500
Year 1 from
RAKEZ
RAK
AED 6,000
Year 1 from
CheaperQuick Verdict
Pick RAKEZ unless your business needs Dubai South's airport logistics.
- ● Choose RAKEZ if cost is your priority — AED 6,500 cheaper in Year 1
- ● Choose Dubai South if you need more visas — up to 10
- ● Choose RAKEZ for overall quality — rated 4.4/5
- ● Choose RAKEZ for faster setup — 5 days processing
- ● Both offer 100% foreign ownership with no local sponsor required
Our Analysis
Dubai South's Beyond Hub portal delivers same-day licensing — the fastest in this comparison. RAKEZ processes licenses within 24 hours and visas in 5 business days, versus Dubai South's 15-day visa timeline. Both are fully digital, but RAKEZ has been running since 2017 across 40,000+ companies. Dubai South launched in September 2025, so its processes are still bedding in. Consultants report fewer hiccups routing through RAKEZ simply because the system has had more reps.
Scaling tells a different story. RAKEZ caps its SME promo at 4 visas. Dubai South supports up to 10 on upgraded workspaces. RAKEZ compensates with its Dual License — simultaneous free zone and mainland RAK operations — which Dubai South doesn't offer. For a trading company that needs local sales and a growing team, the choice depends on whether you prioritise visa headroom (Dubai South) or mainland access (RAKEZ).
Dubai South vs RAKEZ at a Glance
| Metric | Dubai South | RAKEZ |
|---|---|---|
| Emirate | Dubai | RAK |
| Year 1 From | AED 12,500 | AED 6,000 🏆 |
| Renewal From | AED 12,500 | AED 6,000 🏆 |
| Rating | ★ 3.6/5 | ★ 4.4/5 🏆 |
| Max Visas | 10 🏆 | 4 |
| Processing Time | 15 days | 5 days 🏆 |
| Banking | Moderate | Moderate |
| Established | 2025 | 2017 |
| Companies | 4,200+ | 40,000+ |
Year 1 From
Dubai South
AED 12,500
RAKEZ
AED 6,000
Renewal From
Dubai South
AED 12,500
RAKEZ
AED 6,000
Rating
Dubai South
3.6/5
RAKEZ
4.4/5
Max Visas
Dubai South
10
RAKEZ
4
Processing
Dubai South
15 days
RAKEZ
5 days
Banking
Dubai South
Moderate
RAKEZ
Moderate
Package Pricing Breakdown
Dubai South Packages
Dubai · 4 packages
Starter License (No Visa)
No visa · Flexi Desk
AED 12,500
Year 1
Renewal: AED 12,500/yr
1 Visa Package
Up to 1 visa · Flexi Desk
AED 19,000
Year 1
Renewal: AED 16,500/yr
2 Visa Package
Up to 2 visas · Flexi Desk
AED 25,500
Year 1
Renewal: AED 20,500/yr
3 Visa Package
Up to 3 visas · Flexi Desk
AED 37,000
Year 1
Renewal: AED 27,000/yr
RAKEZ Packages
RAK · 4 packages
Biz Starter Package (0 Visa)
No visa · Flexi Desk
AED 6,000
Year 1
Renewal: AED 6,000/yr
SME Business Set-Up (1 Visa)
Up to 1 visa · Flexi Desk
AED 14,320
Year 1
Renewal: AED 14,320/yr
SME Business Set-Up (2 Visas)
Up to 2 visas · Flexi Desk
AED 18,640
Year 1
Renewal: AED 18,640/yr
SME Business Set-Up (4 Visas)
Up to 4 visas · Flexi Desk
AED 27,280
Year 1
Renewal: AED 27,280/yr
Feature Comparison
| Feature | Dubai South | RAKEZ |
|---|---|---|
| Mainland Trading | ✓ Yes | ✓ Yes |
| Physical Office Required | Not Required | Not Required |
| Dual License | ✗ No | ✓ Yes |
| Crypto Friendly | ✗ No | ✗ No |
| Online Portal | ✓ Yes | ✓ Yes |
| Co-working | ✓ Yes | ✓ Yes |
| Audit Required | Required | Required |
Who Should Choose Which?
Choose Dubai South if you...
- ✓ Want e-commerce
- ✓ Want logistics
- ✓ Want trading
- ✓ Want startups
- ✓ Want freelancers
Choose RAKEZ if you...
- ✓ Want startups
- ✓ Want smes
- ✓ Want manufacturing
- ✓ Want e-commerce
- ✓ Want consultancies
- ✓ Want the lowest cost option (AED 6,500 less)
Pros & Cons
Dubai South
Pros
- ✓ Competitive entry pricing — license from AED 12,500 including flexi desk and registered Dubai address
- ✓ Same-day licensing for eligible applications via fully digital Beyond Hub portal
- ✓ Strategic location near Al Maktoum International Airport and Jebel Ali Port
- ✓ No physical office required — flexi desk included with every license
Cons
- ✗ Very new platform (September 2025 launch) — limited track record and community ecosystem
- ✗ AED 300,000 minimum share capital stated for FZCO, though no bank deposit required
- ✗ Banking relationships still developing — fewer dedicated partnerships than DMCC or IFZA
- ✗ Limited international brand recognition compared to established free zones
RAKEZ
Pros
- ✓ Lowest entry point in the UAE — Biz Starter promotion at AED 6,000 with 24-hour setup
- ✓ All-inclusive SME bundle at AED 14,000 includes trade license + 1 UAE residence visa, with same renewal price guaranteed
- ✓ Predictable visa add-ons: up to 3 additional visas at AED 4,000 each
- ✓ Massive activity catalog: 3,000+ activities across 50+ sectors
Cons
- ✗ Mandatory annual audit for all companies — ongoing cost even for small firms
- ✗ Minimum share capital of AED 10,000 for FZ-LLC; higher for regulated activities
- ✗ AED 6,000 Biz Starter may be restricted to UAE-based entrepreneurs
- ✗ Bank accounts still subject to standard due diligence despite partner facilitation
Still not sure?
Try our calculator to find the cheapest free zone for your specific requirements, or get a personalised quote.
Frequently Asked Questions
How do banking options compare between Dubai South and RAKEZ?
RAKEZ has 6 formal banking partnerships: ADIB, RAKBANK, NBF, Mashreq, Wio, and Emirates NBD. Dubai South partners with Mashreq, Emirates NBD, and Wio — just 3. Both sit at 'Moderate' difficulty, but RAKEZ's broader network gives you more fallback options if your first application is declined.
Does RAKEZ or Dubai South require an annual audit?
Both require annual audits. RAKEZ enforces a strict 6-month deadline after year-end with an AED 2,500 late fine. Dubai South requires audits per UAE corporate tax rules. Budget AED 3,000-10,000 per year at either zone.
How fast is visa processing at Dubai South vs RAKEZ?
RAKEZ processes employment visas in 5 business days. Dubai South takes approximately 15 days (2-3 weeks end-to-end including medical and Emirates ID). For founders who need residency fast, RAKEZ is three times quicker.
Can I do mainland trading with Dubai South or RAKEZ?
Both offer mainland access but through different routes. RAKEZ has a Dual License for simultaneous free zone and mainland RAK operations. Dubai South uses Resolution No. 11 of 2025 to enable mainland branches (AED 5,000 permit, up to 6 months). RAKEZ's dual licensing is more permanent.
Which is cheaper, Dubai South or RAKEZ?
RAKEZ is cheaper by AED 6,500 in Year 1. RAKEZ starts from AED 6,000 while Dubai South starts from AED 12,500. However, the cheaper option may not include the same features — check the full comparison above for details.
What is the main difference between Dubai South and RAKEZ?
Dubai South is based in Dubai and is best for E-commerce, Logistics, Trading. RAKEZ is based in RAK and is best for Startups, SMEs, Manufacturing. Dubai South starts from AED 12,500 while RAKEZ starts from AED 6,000.
Which has easier banking, Dubai South or RAKEZ?
Both Dubai South and RAKEZ 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 Dubai South vs RAKEZ?
Dubai South supports up to 10 visas, while RAKEZ supports up to 4 visas. Dubai South offers more visa capacity.
Is Dubai South or RAKEZ better for my business?
It depends on your priorities. Choose Dubai South if you want e-commerce focus and a Dubai address. Choose RAKEZ if you need startups support and lower costs. Use our calculator to find the best match for your specific requirements.