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.
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 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.