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Dubai & UAE · Visas

DMCC vs IFZA vs RAKEZ: The Real Cost Comparison

Expats & Nomads · 3 min read
DMCC: AED 21,360. IFZA: AED 16,160. RAKEZ: AED 13,710. IFZA saves AED 5,200. But banking approval rates: DMCC 84% first try (mostly Emirates NBD and Mashreq), I

DUBAI – Rajesh Patel

Business Consultant, DED #8472, Dubai

Everyone asks "which free zone is cheapest?"

That's the wrong question. The right question is "which one will let me actually operate my business?"

Year One Setup Costs (2025):

DMCC: License 15,000 + Office 4,500 + Govt fees 1,860 = 21,360 AED

IFZA: License 10,995 + Office 3,500 + Govt fees 1,665 = 16,160 AED

RAKEZ: License 8,750 + Office 3,500 + Govt fees 1,460 = 13,710 AED

So IFZA saves you about 5,200 AED. RAKEZ saves 7,650 AED.

Banking approval rates 2025: DMCC roughly 84% get approved first try. IFZA maybe 31% first try. Why? Banks flag IFZA companies as higher risk because free zone

But I still tell most clients to go with DMCC. Here's why:

Banking Approval Rates (based on my cases in 2025):

DMCC: roughly 84% get approved first try (mostly Emirates NBD and Mashreq)

IFZA: maybe 31% first try

Why such a big difference? Banks flag IFZA companies as higher risk because IFZA approved a lot of sketchy companies in the past. The free zone has cleaned up but banks still remember.

I had a client who saved 5,000 AED going with IFZA. He then waited FOURTEEN WEEKS to get a bank account and lost $3,500 in deals because clients wouldn't pay him.

Another client paid the extra for DMCC and was fully operational in three weeks.

When IFZA Actually Makes Sense:

You're already using international banking (Wise, Mercury, etc)

Your clients don't care about your UAE registration details

DMCC (Dubai Multi Commodities Centre): Year one AED 21,360. Located JLT, established business district, prestigious address. Banks recognize DMCC companies as l

You can afford to wait 3 months before getting paid

Otherwise: pay more now, avoid headaches later.

Other Considerations:

DMCC includes more family visas in the base package - often ends up cheaper if you're bringing spouse + kids

Corporate tax started in 2023: 0% on profits up to 375,000 AED, then 9% above that. Everyone has to file now even at 0%.

My Rule:

If you're earning over $5,000/month: DMCC pays for itself in time saved within one month

If you're earning under $2,000/month: go IFZA and be patient

Never choose based on license fee alone. Choose based on how fast you need to be operational.

— Rajesh Patel, Dubai (300+ company setups since 2017)

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