RAKEZ vs SHAMS: comparing two northern emirate free zones
RAKEZ and SHAMS side by side from their own published information: licence types, facilities, visas, packages and setup.
General information from official sources, not legal, tax or financial advice. What this means
- Who this is for
- Founders deciding between RAKEZ in Ras Al Khaimah and SHAMS in Sharjah.
- Question answered
- How do RAKEZ and SHAMS differ?
Key takeaways
- SHAMS (Sharjah Media City) is a media and general business zone that lists flexi-desks as its facility type.
- RAKEZ lists flexi-desks, offices, warehouses, land and staff accommodation, and offers industrial licences.
- Only RAKEZ's Al Hamra, Al Ghail and Al Hulaila industrial areas appear on the FTA's VAT Designated Zone list; SHAMS does not appear on it.
- Compare packages with a visa and the renewal fee, not just the entry price.
- Every figure comes from the zone's own channels, with the date it was checked.
On this page
SHAMS (Sharjah Media City) is a media and general business free zone in Sharjah; it offers service, trading, general trading, media and industrial licence types and lists flexi-desks as its facility type. RAKEZ in Ras Al Khaimah offers industrial, trading, general trading, service, e-commerce, media, education and freelancer licences, and lists flexi-desks, serviced and private offices, warehouses, land plots and staff accommodation. The choice usually comes down to what your business physically needs and how the published packages compare once a visa is included.
| RAKEZ | SHAMS | |
|---|---|---|
| Solo, no visa (year 1) | AED 6,000 | AED 5,760 |
| Founder + 1 visa (year 1) | AED 12,000 | Not published |
| Team, 3 visas (year 1) | Not published | Not published |
| Lowest package of any size (year 1) | AED 6,000 (Biz Starter Package) | AED 5,760 (Media Package) |
| Lowest licence fee | AED 6,000 | AED 5,385 |
| Largest visa quota in a published package | 1 | Not published |
| Minimum office | Flexi-desk | Flexi-desk |
| Minimum share capital | AED 10,000 | Not published |
| Incorporation time (stated by the zone) | 1 day | 1 day |
| On the FTA VAT Designated Zone list | Yes | No |
| Emirate | Ras Al Khaimah | Sharjah |
See the full RAKEZ vs SHAMS comparison →
All figures are as published by each zone, with the date they were checked. See how we verify for our process.
How the costs compare
Packages. The lowest package without stated conditions is AED 5,760 at SHAMS (Media Package) and AED 6,000 at RAKEZ (Biz Starter Package). Both zones run offers, so the gap can move.
Packages with a visa. RAKEZ's lowest published package with at least one visa is AED 12,000. SHAMS does not state a visa quota in its published packages; ask it for a quote with a visa.
Renewal. Neither zone publishes the renewal fee for these packages; ask for it in writing, and whether it includes the establishment card and visa quota.
Visas, space and setup
Visas. The largest visa quota in a RAKEZ published package is 1. RAKEZ states that a shared workstation is limited to one visa; SHAMS states up to 50 visas per licence depending on activity and space.
Office. Both list a flexi-desk as the minimum. RAKEZ also lists offices, warehouses and land, which matters if you store goods, assemble or manufacture.
Setup time. Both zones state incorporation in about 1 day; external approvals for your activity can add time.
VAT Designated Zones
The FTA's list of VAT Designated Zones (September 2021) includes Al Hamra, Al Ghail and Al Hulaila Industrial Zone – Free Zone in Ras Al Khaimah, effective from 4 July 2019. RAKEZ's business zones and coworking centre are not on that list, and SHAMS does not appear on it. The tax treatment that follows from designation is in the VAT Designated Zones guide.
Location
Ras Al Khaimah is further from Dubai than Sharjah. For a flexi-desk business that rarely visits, this may matter little; for an operation with staff at a warehouse or industrial unit, it matters more. Your company operates from its registered address in the zone; premises in another emirate need the right licence there.
What is the same for both
- Mainland trading. The UAE Government portal states that free-zone companies selling to the mainland must work through a licensed distributor or set up a mainland branch or company.
- Federal tax. Corporate tax and VAT are federal; see the Qualifying Free Zone Person guide and the VAT Designated Zones guide.
- Audit. Both zones state that annual audited accounts are required.
Questions to ask both zones
- Is my exact activity on your list, and does it need any external approval?
- What does the package include, and what is billed separately, such as the establishment card or visa quota?
- How many visas does this package allow, and what does an upgrade to the next office type cost?
- What is the renewal fee for the same package?
- Are there conditions attached to the current offer, such as a minimum term?
- If I later need a warehouse or larger office, can I move within the zone without a new licence?
If a zone cannot confirm your activity or its renewal cost in writing, look more closely before paying.
Other zones to compare
Our guide to the cheapest free zone in the UAE explains how to compare zones on published packages.
| Free zone | Emirate | Lowest package (yr 1) | Licence fee from | Max visa quota | Min. office | Incorporation |
|---|---|---|---|---|---|---|
| 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 |
| RAK Maritime City Free Zone | Ras Al Khaimah | Not published | AED 25,000 | Not published | Not published | Not published |
For the full breakdown, open the RAKEZ vs SHAMS comparison, or read the zone pages for RAKEZ and SHAMS. The free zone finder builds a shortlist from your answers.
Sources and limits
- RAKEZ — Zone's official site and Investment Guide.
- SHAMS — Zone's official site.
- FTA list of VAT Designated Zones — Latest published list (September 2021).
- UAE Government portal: running a business in a free zone — Mainland access for free-zone companies.
Questions worth asking
Which is cheaper, SHAMS or RAKEZ?
It depends on the package and the number of visas. Compare the lowest published packages, then ask each zone for an itemised quote with the visas you need, as offers change.
Can I live in Dubai with a RAKEZ or SHAMS visa?
A UAE residence visa is not tied to one emirate for where you live. Your company, however, is licensed to operate from its registered address in the zone; operating premises elsewhere needs the right licence there.
Which offers warehouses or industrial space?
RAKEZ lists warehouses, land plots and industrial licences. SHAMS lists flexi-desks only.
How does corporate tax apply?
Corporate tax is federal and its free-zone conditions are set federally. The FTA advises confirming with the free zone authority whether an area is a Free Zone for corporate-tax purposes. See the Qualifying Free Zone Person guide and speak to a tax adviser about your position.
Can I add visas later?
RAKEZ states that a shared workstation allows one visa and its coworking SME package up to four; more visas need an office. SHAMS states up to 50 visas per licence depending on activity and space, with a business plan and bank statements needed above 10.
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
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