Free zones for e-commerce in the UAE: how to choose
Which free zones publish an e-commerce licence, which list warehouses, and what to confirm about selling to UAE customers. From zones' own published information.
General information from official sources, not legal, tax or financial advice. What this means
- Who this is for
- Online sellers, D2C brands and marketplace merchants setting up a UAE company.
- Question answered
- Which UAE free zones suit an e-commerce business, and what should I check?
Key takeaways
- Decide first whether you hold stock in the UAE; that determines whether you need warehouse access.
- Zones that publish an e-commerce licence include JAFZA, Dubai South, DAFZA, Meydan and RAKEZ; all five also list warehouses.
- The UAE Government portal sets out how free zone companies can sell to mainland customers; confirm your model with the zone in writing.
- VAT Designated Zone status depends on the FTA list and often covers only part of a zone.
- Every figure comes from the zone's own channels, with the date it was checked.
On this page
The right free zone for an e-commerce business depends on whether you hold stock in the UAE, who your customers are and how you will deliver to them. If you sell digital products, dropship or use third-party fulfilment, you mainly need a zone whose licence covers your online activity. If you import and store goods, you also need warehouse space. The table below lists zones in our data that fit e-commerce, from each zone's published licence types (our assessment), sorted by the lowest package each publishes.
| Free zone | Emirate | Lowest package (yr 1) | Licence fee from | Max visa quota | Min. office | Incorporation |
|---|---|---|---|---|---|---|
| Ajman NuVentures Centre Free Zone | Ajman | AED 4,888 | AED 4,888 | 0 | Flexi-desk | 1 day |
| Ajman Media City Free Zone | Ajman | AED 4,999 | AED 4,999 | 3 | Flexi-desk | Not published |
| Jebel Ali Free Zone Authority (Jafza) | Dubai | Not published | AED 5,000 | Not published | Flexi-desk | 3 days |
| Ras Al Khaimah Economic Zone | Ras Al Khaimah | AED 6,000 | AED 6,000 | 1 | Flexi-desk | 1 day |
| Innovation City | Ras Al Khaimah | AED 6,600 | AED 6,600 | 4 | Flexi-desk | 5 days |
| Sharjah Airport International Free Zone | Sharjah | Not published | AED 7,500 | Not published | Dedicated office | 1 day |
| Dubai World Trade Centre Free Zone | Dubai | Not published | AED 12,000 | 7 | Virtual office | 3 days |
| Meydan Free Zone | Dubai | AED 12,500 | AED 12,500 | 3 | Flexi-desk | 1 day |
Figures are as published by each zone with the date checked. Confirm the exact wording of your e-commerce activity with the zone. Our approach is explained on how we verify.
Start with your operating model
Before comparing zones, place yourself in one of these groups:
- Digital products and services. Courses, software, templates or subscriptions. No physical stock.
- Dropshipping. Suppliers ship directly to customers; you never hold inventory in the UAE.
- Third-party fulfilment. Stock sits with a logistics provider or marketplace warehouse.
- Own inventory. You import, store and ship goods yourself.
- B2B online wholesale. You sell to businesses rather than consumers.
The last two usually need warehouse access and attention to how goods move in and out of the zone.
What to check in the activity list
Zones word their e-commerce activities differently. Ask the zone to confirm in writing:
- whether the activity covers online sales to consumers, businesses or both
- whether it covers customers in the UAE mainland as well as abroad
- which product categories are included, and whether any need extra approvals (for example food, cosmetics or health products)
- whether you can combine e-commerce with a trading or services activity on one licence
- whether online activity needs any other approval; RAKEZ, for example, states that it needs a no-objection certificate from the Telecommunications and Digital Government Regulatory Authority
Selling to UAE customers from a free zone
The UAE Government portal states that free zone companies can trade internationally, that goods carry customs duty only when they enter the mainland market, and that to sell locally a free zone company must work through a licensed mainland distributor or set up a mainland branch or company. In Dubai, Executive Council Resolution 11 of 2025 sets the licences and permits for free zone companies operating on the mainland. This is the most important question to put to any zone you are considering. Our free zone vs mainland guide sets out the official routes.
Zones that publish an e-commerce licence and warehouses
JAFZA, Dubai South, DAFZA, Meydan and RAKEZ each publish an e-commerce licence type and list warehouses among their facilities. JAFZA, Dubai South, DAFZA and RAKEZ also have areas on the FTA's VAT Designated Zone list; Meydan does not appear on it.
| Free zone | Emirate | Lowest package (yr 1) | Licence fee from | Max visa quota | Min. office | Incorporation |
|---|---|---|---|---|---|---|
| Jebel Ali Free Zone Authority (Jafza) | Dubai | Not published | AED 5,000 | Not published | Flexi-desk | 3 days |
| Ras Al Khaimah Economic Zone | Ras Al Khaimah | AED 6,000 | AED 6,000 | 1 | Flexi-desk | 1 day |
| Sharjah Airport International Free Zone | Sharjah | Not published | AED 7,500 | Not published | Dedicated office | 1 day |
| Meydan Free Zone | Dubai | AED 12,500 | AED 12,500 | 3 | Flexi-desk | 1 day |
| Umm Al Quwain Free Trade Zone | Umm Al Quwain | AED 12,500 | AED 5,500 | 1 | Flexi-desk | 1 day |
| Sharjah Publishing City Free Zone | Sharjah | AED 13,175 | AED 5,750 | 1 | Not published | 1 day |
| Jafza | Dubai South Free Zone | DAFZ | RAKEZ | |
|---|---|---|---|---|
| Solo, no visa (year 1) | Not published | AED 11,375 | Not published | AED 6,000 |
| Founder + 1 visa (year 1) | Not published | AED 13,975 | Not published | AED 12,000 |
| Team, 3 visas (year 1) | Not published | Not published | Not published | Not published |
| Lowest package of any size (year 1) | Not published | AED 11,375 (DSBH 0 Visa Package + Instant IBAN) | Not published | AED 6,000 (Biz Starter Package) |
| Lowest licence fee | AED 5,000 | Not published | Not published | AED 6,000 |
| Largest visa quota in a published package | Not published | 2 | 6 | 1 |
| Minimum office | Flexi-desk | Not published | Flexi-desk | Flexi-desk |
| Minimum share capital | None | Not published | AED 1 | AED 10,000 |
| Incorporation time (stated by the zone) | 3 days | Not published | Not published | 1 day |
| On the FTA VAT Designated Zone list | Yes | Yes | Yes | Yes |
| Emirate | Dubai | Dubai | Dubai | Ras Al Khaimah |
See the full Jafza vs Dubai South Free Zone vs DAFZ vs RAKEZ comparison →
Warehouse packages cost more than desk packages, so compare what each package includes. Ask about customs codes, bonded storage and how goods move into the mainland.
Tax
VAT. VAT Designated Zones are a specific FTA list, often covering only part of a zone; designation does not make a business VAT-free. See the VAT Designated Zones guide and take advice if you store goods.
Corporate tax. The Qualifying Free Zone Person regime has conditions set by the FTA and Ministry of Finance. Ministerial Decision 229 of 2025 lists "any transactions with natural persons" among the excluded activities, with limited exceptions, which is relevant to selling to consumers. See the Qualifying Free Zone Person guide and take advice on your revenue mix.
Banking and payments
Payment gateways, marketplaces and banks each set their own onboarding criteria. Contact the providers you plan to use, share your intended licence activity and ask what they need.
For all zones in our e-commerce view, see the e-commerce industry page. For a shortlist matched to your model, try the free zone finder.
Sources and limits
- UAE Government portal: running a business in a free zone — Customs treatment and mainland access.
- FTA List of Designated Zones (21 September 2021) — Which zones and areas are VAT Designated Zones.
- Zone pages — Licence types, facilities and packages as published by each zone, with sources.
Questions worth asking
Can a free zone e-commerce company sell to customers in the UAE?
The UAE Government portal states that a free zone company selling locally must work through a licensed mainland distributor or set up a mainland branch or company, and that direct mainland sales generally need mainland licences or approvals. Ask the zone in writing how its e-commerce licence applies to online sales to UAE consumers.
Do I need a warehouse?
Only if you hold stock yourself. Each zone page lists the facility types the zone publishes, including warehouses.
Are VAT Designated Zones relevant to e-commerce?
Designation is set by the FTA list and the VAT law, and its effect depends on what you supply and where goods move. If you store goods, ask a tax adviser.
Do some zones need extra approvals for online selling?
Some do. RAKEZ, for example, states that online activity needs an e-commerce licence plus a no-objection certificate from the Telecommunications and Digital Government Regulatory Authority. Ask each zone what applies.
Which payment gateways accept free zone companies?
Payment providers set their own criteria. Contact the providers you plan to use and share your licence activity before committing to a zone.
FreezoneGuide Research
We compare UAE free zones using official fee schedules, written replies from zones and dated evidence. Rankings come from the data, and every figure links back to when it was checked. How we verify
Related reading
By industry · 6 min read
Free zones for consultants, agencies and professional services
Licence types, freelance permits, mainland clients, regulated professions and corporate tax on service income, from official UAE sources.
27 October 2026
By industry · 6 min read
Free zones for tech and software startups
Licences for software and IT, hiring a team, office space, IP registration and the free zone corporate tax rules on software income.
27 October 2026
By industry · 5 min read
Free zones for import, export and re-export trading
General and specialised trading licences, warehouses, customs duty in a free zone and on the mainland, and customs registration, from official sources.
27 October 2026