RAK Free Zone Guide
Updated February 2026
Free Zones in Ras Al Khaimah (RAK)
RAK has one free zone — RAKEZ — and it is the UAE's largest by company count. At AED 14,320 with dual licensing and 3,000+ activities, RAKEZ consistently ranks as one of the best-value free zones in the country.
Ras Al Khaimah took a different approach than Dubai. Instead of fragmenting into a dozen niche zones, RAK consolidated everything into RAKEZ in 2017. The result: one authority, one portal, one relationship — and 40,000+ companies that prove the model works. RAKEZ added 19,000 new companies in 2025 alone, making it the fastest-growing free zone in the UAE.
The value proposition is straightforward: Dubai-competitive activities at Northern Emirates pricing, plus mainland trading rights that most budget Dubai zones cannot match.
RAK Free Zones
AED 6,000
Year 1 from
Rating
★ 4.4/5
Renewal
AED 6,000
Banking
Moderate
Companies
40,000+
RAKEZ is Ras Al Khaimah's government-run economic zone focused on affordable setup for startups, SMEs, and industrial businesses, with wide facility options across multiple parks. It stands out for low entry pricing starting at AED 6,000, all-inclusive SME bundles, and an increasingly formal banking-partner ecosystem for faster onboarding.
AED 10,000
Year 1 from
Rating
★ 4.0/5
Renewal
AED 10,000
Banking
Moderate
Companies
30+
RAK Maritime City Free Zone is a shipping, logistics and light industrial zone adjacent to Saqr Port. It caters to maritime, freight, and marine services, offering turnkey facilities. Companies benefit from proximity to deep-water berths and access to RAK’s cost-effective licenses.
Why RAKEZ Keeps Growing
Dual licensing
RAKEZ is one of the few budget zones offering mainland trading rights. For businesses selling to UAE companies, this eliminates the need for a separate mainland license — saving AED 15,000-30,000 annually.
Flat renewal pricing
RAKEZ charges AED 14,320 in Year 1 and AED 14,320 on renewal. No hidden markup. Many zones inflate renewal pricing by 20-50% once you are locked in. RAKEZ does not play that game.
3,000+ activities
From general trading to manufacturing to IT consulting, RAKEZ covers nearly every business activity. Some zones cap activities at 100-500. RAKEZ's breadth means you are unlikely to hit activity restrictions as your business evolves.
Industrial infrastructure
Beyond virtual offices, RAKEZ offers warehouses, industrial land, and manufacturing facilities. For businesses that need physical space, RAKEZ provides it at a fraction of Dubai or Abu Dhabi rates.
The Trade-Offs
- ✗ RAK address perception. International clients and banks do not recognise "Ras Al Khaimah" the way they recognise "Dubai." For B2B consulting or financial services, this matters.
- ✗ Mandatory annual audit. RAKEZ requires all companies to submit audited accounts — expect AED 3,000-5,000 per year for a solo/small company. Some Dubai zones waive this.
- ✗ Distance from Dubai. RAK is 45-60 minutes from Dubai by car. If your clients, partners, or bank branch are in Dubai, that commute adds up.
- ✗ AED 10,000 share capital. FZ-LLC entities must deposit a minimum of AED 10,000 in share capital. This is recoverable but ties up cash upfront.
RAKEZ vs Top Alternatives
Is RAKEZ the right choice for your business?
Our calculator compares RAKEZ against all 30 UAE free zones based on your specific requirements.
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Frequently Asked Questions
What free zones are in RAK?
Ras Al Khaimah has one major free zone: RAKEZ (Ras Al Khaimah Economic Zone). RAKEZ was formed in 2017 by merging RAK FTZ and RAK Investment Authority, consolidating all free zone operations in the emirate under one authority. It is now the UAE's largest free zone by company count with 40,000+ registered businesses.
How much does it cost to set up in RAKEZ?
RAKEZ starts from AED 14,320 for the SME bundle with one residence visa included. That covers trade license, registration, establishment card, and visa processing. Renewal stays at the same price — no Year 2 markup. Additional visas cost approximately AED 7,000-8,000 each. Budget AED 3,000-5,000 for mandatory annual audit.
Is RAKEZ better than Dubai free zones?
RAKEZ is better on cost (AED 14,320 vs AED 12,900+ in Dubai), mainland trading rights (dual license available), and company volume (40,000+ vs 5,000 at IFZA). Dubai is better on brand recognition, banking ease, and proximity to Dubai-based clients and partners. For cost-sensitive businesses that do not need a Dubai address, RAKEZ delivers more value per dirham.
Does RAKEZ allow mainland trading?
Yes. RAKEZ offers dual licensing that allows you to trade on the UAE mainland alongside your free zone activities. This is a significant advantage over budget Dubai zones like IFZA and Meydan, which restrict you to free zone-to-free zone and international trade only.
Is banking difficult with a RAKEZ license?
Banking is rated "Moderate" — RAKEZ has partnerships with six banks including RAKBANK, Emirates NBD, Mashreq, and FAB. Approval rates are generally 60-70% for first applications. The 40,000+ company base gives RAKEZ stronger banking credibility than smaller zones, but it does not match DMCC's "Easy" rating.
Can I live in Dubai with a RAKEZ license?
Yes. Your UAE residence visa lets you live anywhere in the UAE. Many RAKEZ licensees live in Dubai, Sharjah, or Abu Dhabi. The only requirement is an occasional trip to RAK for government processes like visa stamping or EID fingerprinting. RAK is a 45-60 minute drive from Dubai.
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