RAKEZ in 2026: low-cost UAE company setup and its pitfalls

RAKEZ (Ras Al Khaimah Economic Zone) really does offer one of the cheapest ways into the UAE: the Biz Starter package costs AED 6,000, and the All Inclusive package with one residence visa costs AED 14,000 per year. The pitfalls are not about the price but about what it leaves out: Biz Starter does not mention a visa, the medical test and Emirates ID are done in Ras Al Khaimah, and the company is not in Dubai, so the new rules letting Dubai free zone companies work on the mainland do not apply to it.

For a freelancer, consultant or small online business with clients abroad, RAKEZ often turns out to be a sensible choice. For a business that needs a Dubai address, local clients in Dubai or has a complex banking profile, the savings can turn into extra costs later.

Below we look at what RAKEZ publishes about its packages and where we see risks for clients.

The two main RAKEZ packages

All figures come from the official RAKEZ package pages as of June 2026. Both pages note that separate terms and conditions apply, so ask for them in full before you pay. An overview of the zone is on the RAKEZ page.

RAKEZ also has other offers: an Instant Business Licence, packages for e-commerce and for women entrepreneurs, warehouses and industrial land. Their prices are not shown on the official page, so for comparison we use the two packages with published prices. If you need a warehouse or manufacturing space, look at RAKEZ separately, since the cost logic is different.

Pitfall 1: the visa is not always included

The most common surprise involves Biz Starter. The package page says nothing about visas. It is a license and a coworking workspace. If you need a residence visa, do not compare AED 6,000 but the cost of a package with a visa.

All Inclusive does include a visa, which makes it one of the clearest offers on the market: AED 14,000 per year for a license, one visa and a workspace. Even here, though, RAKEZ says it helps with Emirates ID and the medical test without stating whether the government fees for them are included in the package price. We recommend getting this confirmed in writing. More on visa types on the investor visa page.

Pitfall 2: trips to Ras Al Khaimah

According to the zone, RAKEZ registration and renewal are fully digital. The medical test, biometrics and some visa steps, however, take place in the emirate that issued the visa. Ras Al Khaimah is about an hour to an hour and a half by car from Dubai each way.

For a resident living in Dubai this means 1-2 trips when the visa is issued and the same again on renewal. Not critical, but worth factoring in, especially if the whole family needs visas.

For a family of four this means several trips for medical tests and biometrics, although children under 18 usually do not need a medical test. We suggest grouping all of the family's visa steps into one or two days so you do not have to drive to Ras Al Khaimah several times.

Pitfall 3: the company is not in Dubai

Since 2025, companies in Dubai free zones can work on the Dubai mainland through a branch license or a temporary permit (Executive Council Resolution No. 11 of 2025). RAKEZ is in a different emirate, so this mechanism does not apply to it.

If your clients are abroad, this does not matter. If you plan to sell services to companies and individuals in Dubai, take it into account early. RAKEZ also issues licenses for the Ras Al Khaimah mainland (non-free zone), so check the conditions with the zone.

Read more: IFZA vs Meydan.

Pitfall 4: banking

Companies in the northern emirates open accounts with the same UAE banks as Dubai companies. In our experience, the bank looks more at the business profile, client countries and whether the owner has a visa than at the free zone. But very small companies without a visa and with a minimal package usually face a longer review.

The Biz Starter description notes that the right to open an account is subject to separate terms. Check in advance which banks are ready to work with your activity, and prepare contracts, a website and an explanation of your source of funds. More on the corporate account page.

Read more: UAE corporate account for founders from the CIS and emerging markets.

Pitfall 5: what happens in year two

For All Inclusive, RAKEZ states that renewal is at the same price. For Biz Starter the renewal price is not stated in the package description. Promotions change, so:

• ask for the renewal price in writing before you pay;
• check whether the discount stays if you change package or add visas;
• check how much it costs to add an activity beyond 10.

We compare full two-year budgets for different free zones in UAE company setup cost in 2026.

Pitfall 6: regulated activities

RAKEZ packages include up to 10 activities, and the zone's list is huge: more than 3,000 items. But some of them need external approvals, for example education services that issue certificates, healthcare and financial services. The cost and timing of these approvals are not included in the package price.

Our advice: draw up your list of activities before choosing a package and check each one in the RAKEZ catalogue. If even one needs approval, ask the zone for the timeline and cost in advance. Otherwise a cheap AED 6,000 entry can turn into waiting several weeks for your license.

Who RAKEZ suits

If you are choosing between RAKEZ and other low-cost zones, compare it with SHAMS and Ajman Free Zone, see the SHAMS and Ajman Free Zone pages.

Read more: How to choose a UAE free zone.

What changed in 2026

• The gap between Dubai and the northern emirates has widened. Dubai free zones gained access to the Dubai mainland, while RAKEZ remains an option for businesses with clients abroad or in Ras Al Khaimah itself.
• Small Business Relief extended. The corporate tax relief applies to periods ending no later than 31 December 2029 (Ministerial Decision No. 131 of 2026). Small RAKEZ companies with revenue up to AED 3 million can keep claiming it in their returns.
• Digital renewal. RAKEZ promotes fully online registration and renewal, as well as multi-year packages and instalment payments through Tabby.

FAQ

Can I get a visa with the AED 6,000 package?

The Biz Starter description does not mention a visa. For a visa, choose All Inclusive at AED 14,000, which includes one visa, or ask RAKEZ for a Biz Starter quote with a visa quota.

How much does a visa for my spouse and children cost in RAKEZ?

The All Inclusive package gives a 20% discount on dependant visas. Check the final amount with the zone, as it depends on the visa length and the number of family members.

Do I need to travel to Ras Al Khaimah?

Not to register the company. For the medical test and biometrics when your visa is issued, usually yes.

Can I work with clients in Dubai?

With clients in other free zones and abroad, yes. For work on the Dubai mainland, the Resolution No. 11 of 2025 mechanism does not apply to RAKEZ, so you need other solutions: a mainland branch or a distributor.

How many activities can I include?

Both packages include up to 10 activities, which can be combined. In total, according to the zone, RAKEZ offers more than 3,000 activities.

Sources

• RAKEZ, All Inclusive package: rakez.com
• RAKEZ, Biz Starter package: rakez.com
• RAKEZ, activity and facility list: rakez.com
• Federal Tax Authority, Small Business Relief: tax.gov.ae
• Dubai Executive Council Resolution No. 11 of 2025
• UAE government portal: u.ae