Ras Al Khaimah 36°C GoogleFollow on News Search ⌕
INSIDERAK
Business Setup · 2026

RAKEZ vs DED: Free Zone or Mainland?

RAKEZ (free zone) offers 100% foreign ownership, 0% qualifying corporate tax and licensing from AED 6,000. A DED mainland licence lets you sell directly into the UAE market but costs more and pays 9% standard corporate tax. Here's the full comparison.

AED 6,000
RAKEZ entry
0%
Qualifying tax
100%
Foreign ownership

RAKEZ vs DED vs other free zones

Side-by-side comparison for 2026
Factor RAKEZ (free zone) UAE mainland (DED) Dubai free zone
Foreign ownership 100% 100% (since 2021) 100%
Entry licence cost from AED 6,000 from ~AED 15,000 from ~AED 12,000
Setup speed days 1–2 weeks days
Sell into UAE market via local agent direct via local agent
Corporate tax 0% qualifying 9% standard 0% qualifying
Visa quota 1+ per package based on office 1+ per package
Best for cost-conscious trade & services local distribution & gov contracts Dubai-market access

Indicative 2026 figures. Exact costs depend on activity, facility and visa count. See the RAKEZ business setup guide for full detail.

Which should you choose?

Choose RAKEZ (free zone) if:

  • You want the lowest entry cost (from AED 6,000)
  • You trade internationally or serve clients outside the UAE
  • You want 0% qualifying corporate tax
  • You need fast licensing (days, not weeks)

Choose DED (mainland) if:

  • You sell directly to UAE consumers or businesses
  • You bid for government contracts
  • You need a physical retail or office presence in the local market
  • You accept 9% standard corporate tax on taxable profits

Related guides

RAKEZ overviewRAKEZ hub →
Online setupRAKEFZ.com →

RAKEZ vs DED — FAQ

What is the difference between RAKEZ and DED? +

RAKEZ is the Ras Al Khaimah Economic Zone — a free zone offering 100% foreign ownership, 0% qualifying corporate tax and licensing from AED 6,000. DED (Department of Economic Development) licenses mainland companies that can sell directly into the UAE market but pay 9% standard corporate tax on taxable profits.

Is RAKEZ cheaper than a Dubai free zone? +

Yes, generally. RAKEZ entry licences start at AED 6,000 (Biz Starter, no visa) versus roughly AED 12,000+ for most Dubai free zones. RAKEZ also offers lower facility and visa costs, making it one of the most cost-competitive free zones in the UAE.

Can a RAKEZ company sell into the UAE mainland? +

Yes, through a local distributor or agent. Free-zone companies cannot sell directly into the mainland without a local partner or a mainland branch, whereas a DED-licensed mainland company can sell directly.

Is RAKEZ subject to corporate tax? +

Qualifying free-zone income in RAKEZ is taxed at 0% under the UAE Qualifying Free Zone Person regime. Non-qualifying income is taxed at 9%. Mainland (DED) companies pay 9% on taxable profits above the threshold.