Business Setup

RAKEZ, Innovation City & business setup

RAKEZ (Ras Al Khaimah Economic Zone) is the emirate's official free-zone authority, formed in 2017 from the merger of RAK Free Trade Zone and RAK Investment Authority. Here's what it actually takes to set up.

40,000+
Companies, 100+ countries
100%
Foreign ownership
2–3 days
Innovation City licensing

Setting Up in Five Steps

Choose your licence category

RAKEZ offers 10 distinct licence categories across free-zone and non-free-zone entities, covering over 1,000 approved business activities from trading to specialised consulting.

Select free zone or non-free zone

Free-zone entities suit companies trading internationally or needing 100% foreign ownership with no local sponsor; non-free-zone suits businesses targeting the UAE mainland market.

Submit for approval

Standard RAKEZ approvals move quickly; Innovation City, the AI-powered free zone, licenses qualifying founders in as little as 2–3 days.

Receive your digital licence

Approved companies receive a digital licence with a QR code, enabling immediate bank account opening and contract signing.

Register for tax

Every firm must register with the Federal Tax Authority for a Tax Registration Number. Annual return filing is mandatory even where 0% tax applies to income earned outside the UAE.

The AI Free Zone

Innovation City

Formerly RAK Digital Assets Oasis, Innovation City has relaunched as what it calls the world's first free zone fully powered by artificial intelligence — and it has already attracted more than 1,000 startups.

Web3 & Digital Assets

One of five founding sectors, building on the zone's origins as RAK Digital Assets Oasis.

Artificial Intelligence

The flagship positioning — AI-native infrastructure and 2–3 day licensing for qualifying founders.

Gaming & iGaming

A founding growth sector, drawing studios and operators watching the wider region's gaming market.

Robotics & Healthtech

Rounding out the five founding sectors, with purpose-built infrastructure and access to capital and talent pipelines.

Frequently asked questions

How does RAKEZ compare to Dubai free zones on cost? +

RAKEZ licence fees and office rents typically run 20–30% below comparable Dubai free zones, a core part of its pitch to cost-conscious founders and industrial firms.

Do I need a local sponsor? +

No. From day one, RAKEZ company setup is 100% foreign-owned with no local partner or sponsor required.

What is e-Invoicing and does it affect me? +

The UAE is rolling out a national e-Invoicing system, with a pilot expected in July 2026. Companies setting up now should choose accounting or ERP systems that support structured digital invoicing from the outset.

Is Innovation City part of RAKEZ? +

Innovation City operates as its own AI-focused free zone (formerly RAK Digital Assets Oasis), distinct from but complementary to RAKEZ's broader multi-sector offering.

Quick Facts

Formed2017
Licence categories10
Approved activities1,000+
Companies hosted40,000+
Countries represented100+
Cost vs. Dubai20–30% lower
See the investor briefing