Best Free Zone for Trading in the UAE
If you're looking to start a trading company in the UAE, choosing the right free zone is crucial. With over 45 free zones across the Emirates — each offering unique benefits — it's important to understand which ones provide the best infrastructure, tax advantages, and global access for trading activities.
In this guide, we cover:
- Why traders prefer free zones in the UAE
- Key benefits of trading from a free zone
- Top 5 free zones for trading in 2025
- Cost breakdown and licensing requirements
- Expert tips for setup
Why Free Zones Are Ideal for Trading Companies
Free zones in the UAE are tax-efficient, business-friendly jurisdictions designed to attract global investors and facilitate international commerce. Trading companies benefit from:
- 100% foreign ownership
- 0% import/export duties within the zone
- No corporate or personal income tax (subject to qualifying income)
- Strategic global connectivity via ports, airports, and logistics hubs
- Full repatriation of profits and capital
Whether you trade physical goods, commodities, or digital products, UAE free zones offer a secure and scalable base for regional and global operations.
Top 5 Free Zones for Trading in the UAE (2025)
1. DMCC – Dubai Multi Commodities Centre
Best for: General trading, commodities, precious metals, energy, crypto
Location: Jumeirah Lakes Towers, Dubai
Highlights:
- World's #1 free zone (8th year in a row – Financial Times)
- Home to over 24,000 companies
- Robust infrastructure for trade, including logistics, banking, and customs
- Dedicated zones for gold, diamonds, coffee, and tea trade
License Type: General Trading or Specific Activity License
Starting Cost: AED 30,000–40,000
Extras: Access to SPVs, Holding Companies, and the DMCC Crypto Centre
2. RAKEZ – Ras Al Khaimah Economic Zone
Best for: Import/export, industrial trading, bulk goods
Location: Ras Al Khaimah
Highlights:
- Cost-effective warehouse and storage options
- Access to Saqr Port and land transport corridors
- Quick company formation and visa processing
License Type: Trading License, Commercial License
Starting Cost: From AED 11,000
Edge: Ideal for export-focused and industrial traders on a budget
3. JAFZA – Jebel Ali Free Zone
Best for: High-volume import/export, logistics, manufacturing
Location: Next to Jebel Ali Port & Al Maktoum Airport, Dubai
Highlights:
- World's largest free zone
- Seamless multimodal logistics (sea, land, air)
- Home to Fortune 500 companies
- Onsite customs and warehouses
License Type: Trading, Logistics, E-Commerce
Starting Cost: From AED 50,000
Edge: Best suited for large-scale trading companies
4. IFZA – International Free Zone Authority
Best for: E-commerce, light trading, dropshipping
Location: Dubai Silicon Oasis
Highlights:
- Flexible licensing packages
- Low-cost entry for startups
- No physical office required (virtual office available)
License Type: Trading, E-commerce
Starting Cost: From AED 12,900
Edge: Perfect for small businesses and remote entrepreneurs
5. SHAMS – Sharjah Media City
Best for: Freelancers, digital goods, low-cost traders
Location: Sharjah
Highlights:
- Simplified incorporation
- Budget-friendly packages
- Ideal for digital traders or small-scale resellers
License Type: Trading, Media Activities
Starting Cost: From AED 5,750
Edge: Best for entrepreneurs testing the market
Cost Comparison Table (2025)
| Free Zone | Starting Cost (AED) | Trading License | Ideal For |
|---|---|---|---|
| DMCC | 30,000 – 40,000 | ✅ | High-end & global trading |
| RAKEZ | 11,000+ | ✅ | Budget industrial trading |
| JAFZA | 50,000+ | ✅ | High-volume & logistics |
| IFZA | 12,900+ | ✅ | E-com, SMEs, low-volume |
| SHAMS | 5,750+ | ✅ | Solopreneurs, digital traders |
Licensing Requirements
To set up a trading company in a UAE free zone, you typically need:
- Passport copy of shareholders
- Proposed trade name
- Initial approval from the authority
- Trade license (General or Specific)
- Office/warehouse lease (optional for virtual setups)
- Establishment card and visa processing (optional)
Free Zone vs Mainland for Trading
| Feature | Free Zone | Mainland |
|---|---|---|
| Foreign Ownership | 100% | 100% (in most sectors) |
| Trade in UAE Market | Via distributor | Direct |
| Office Required | Optional | Mandatory |
| Setup Cost | Lower | Higher |
| Ideal For | Import/export, e-com | Retail, services |
Expert Tips for Free Zone Traders
- Choose a zone near logistics hubs if your business relies on fast shipping (e.g., DMCC, JAFZA).
- Opt for virtual offices if you're operating remotely or testing the market.
- Get the right activity codes for import/export and check customs classifications.
- Plan for banking: UAE banks have strict compliance; work with setup advisors like Affinitas for smooth onboarding.
- Mind corporate tax: To benefit from 0%, ensure your trading income is "qualifying" under FTA guidelines.
Need Help Choosing the Right Free Zone?
Affinitas DMCC is your trusted partner for business setup, licensing, and tax structuring. Whether you’re importing consumer goods, exporting commodities, or running an online store — we’ll guide you to the best jurisdiction and handle all formalities.