Compare · UAE · 2026
Free zone vs Mainland (DED): Which Is Better for Your Business (2026)?
Free zone 40 zones in the snapshot Mainland (DED) Dubai DET · Abu Dhabi ADDED - Free zones are cheaper and faster: median license from AED 12,500* vs from AED 15,665* on the mainland, with issuance in 2–7 days.
- Mainland companies trade anywhere in the UAE; free-zone companies trade inside their zone and internationally.
- Both allow 100% foreign ownership and the same taxes: 9% corporate tax above AED 375,000 of profit, 5% VAT.
- Bottom line: selling to walk-in UAE customers → mainland; international services, IT and cross-border trading → free zone.
Side by side
Free zone vs Mainland (DED): parameters
| Parameter | Free zone | Mainland (DED) |
|---|---|---|
| License price from median: 12,500 vs 15,665 | from AED 5,505* | from AED 15,665* |
| Typical setup time | 2–7 days | 4–10 days |
| Trading inside the UAE | inside the zone + export | anywhere in the UAE |
| Foreign ownership | 100% | 100% |
| Corporate tax | 9% (0% to AED 375k) | 9% (0% to AED 375k) |
| VAT | 5% | 5% |
| Office requirement | flexi-desk allowed | physical premises usually required |
| Visa quota | package-based, 2–6+ | by premises size |
| License combinations in snapshot | 3,686 | 971 |
| Regulator approvals | zone authority | DED + sector regulators |
* Market reference as of September 2026, exact quote on request. Market data, Sep 2026.
Typical licenses
What a license costs for typical activities
| Parameter | Free zone | Mainland (DED) |
|---|---|---|
| Consulting / services license | from AED 6,000* | from AED 15,665* |
| E-commerce / trading | from AED 5,555* | from AED 5,880* |
| IT / software development | from AED 14,900* (IFZA) | from AED 15,665* (DET) |
* Market reference as of September 2026, exact quote on request. Market data, Sep 2026.
Decision
Who suits which option
Choose a free zone if
- You sell internationally or online, not walk-in UAE customers
- Cost and speed matter: license from AED 5,505* in under a week
- You want remote incorporation without visiting the UAE
- A flexi-desk address is enough for your activity
Choose mainland if
- You open a shop, restaurant or business with walk-in UAE customers
- You bid for government contracts
- Your activity is regulated and only licensed on the mainland
- You need an office in a specific emirate anyway
Frequently asked questions
Frequently asked questions
Can I move from a free zone to the mainland later?
Yes. Companies convert or open a mainland branch; licenses and visas are re-issued. Plan for 2–4 weeks and fresh government fees — the history of the company carries over.
Which is cheaper in the long run?
For most service businesses a free zone stays cheaper: lower license and renewal fees and no mandatory office rent. Mainland costs pay off when UAE-local sales outweigh the difference.
Can a foreigner own 100% of a mainland company?
Yes — since 2021 most mainland activities allow 100% foreign ownership; a local service agent remains only for a narrow list of activities.
Do both pay the same taxes?
Yes: 9% corporate tax on profit above AED 375,000 and 5% VAT once turnover passes AED 375,000. Qualifying free-zone entities can keep a 0% rate on qualifying income.
Still choosing between Free zone and Mainland (DED)?
A 15-minute call with your business model on the table settles it — jurisdiction, license and visa plan.