Last updated: September 2026. All package prices below were confirmed against BusinessDubai.ae's own 2026 pricing sheet and both zones' own published materials in September 2026.
The honest answer to IFZA vs Meydan Free Zone turns on one number, and it is not the licence price. It is your visa count. At zero visas Meydan Free Zone is AED 12,500 and IFZA is AED 12,900. At one visa Meydan is AED 21,050 and IFZA is AED 21,400. Those gaps are noise on a five figure decision.
The decision turns at the second visa. Meydan charges AED 6,550 to add the second head and IFZA charges AED 3,200, so a two visa company pays AED 27,600 at Meydan and AED 24,600 at IFZA [15]. Same emirate, same package shape, AED 3,000 apart, and every visa after that widens the gap.
There is a second difference nobody prices. Meydan publishes its fees on meydanfz.ae line by line [1]. IFZA publishes no price at all: not on its homepage, not on its Set Up Your Business page, not in its own 21 page formation guide [2]. Every IFZA figure in circulation, including ours, is a partner price.
Since 2013, BusinessDubai.ae has registered companies in both zones, so these are prices we transact at. This guide covers cost by visa count, the marginal price of each visa, quota and office, activities, VAT, tax, banking, renewal, exit and switching.
Is IFZA or Meydan cheaper in 2026?
Neither, at zero or one visa. Meydan Free Zone is AED 12,500 licence only against IFZA's AED 12,900, and AED 21,050 with one visa against IFZA's AED 21,400. At two visas IFZA is AED 24,600 against Meydan's AED 27,600, winning by AED 3,000 [15].
Both packages carry three activities and three shareholders, so this is like for like.
| Basis | Meydan Free Zone | IFZA | Difference |
|---|---|---|---|
| Licence only, no visa | AED 12,500 | AED 12,900 | Meydan cheaper by AED 400 |
| Licence plus 1 visa | AED 21,050 | AED 21,400 | Meydan cheaper by AED 350 |
| Licence plus 2 visas | AED 27,600 | AED 24,600 | IFZA cheaper by AED 3,000 |
Read that as a curve. The two zones track each other until the second visa, then split and stay split.
Common Mistake: Comparing these zones on the licence only price. Almost every quote leads with AED 12,500 or AED 12,900, the one basis on which almost nobody buys, because it carries no residence visa and so no Emirates ID and no resident bank signatory. Compare on the visa count you will hold in month twelve.
Where does the cost difference actually come from?
From the marginal price of each visa, not the licence. The first visa costs about AED 8,500 at almost every Dubai zone, including AED 8,500 at IFZA and AED 8,550 at Meydan. The second costs AED 3,200 at IFZA against AED 6,550 at Meydan, more than double for the same residence permit [15].
Derived from package prices BusinessDubai.ae transacts at across eleven UAE zones.
| Zone | Emirate | Licence only (AED) | 1st visa adds (AED) | 2nd visa adds (AED) |
|---|---|---|---|---|
| IFZA | Dubai | 12,900 | 8,500 | 3,200 |
| Expo City | Dubai | 12,500 | 8,550 | 3,500 |
| SRTIP | Sharjah | 5,510 | 8,480 | 3,805 |
| Ajman Free Zone | Ajman | 5,555 | 7,576 | 4,040 |
| SPC Free Zone | Sharjah | 5,765 | 8,490 | 4,450 |
| SHAMS | Sharjah | 6,885 | 7,370 | 4,450 |
| ANC Free Zone | Ajman | 4,888 | 5,912 | 5,400 |
| Masdar City | Abu Dhabi | 7,000 | 10,500 | 5,850 |
| RAKEZ | Ras Al Khaimah | 6,010 | 6,000 | 6,000 |
| Meydan Free Zone | Dubai | 12,500 | 8,550 | 6,550 |
| Dubai South | Dubai | 12,500 | 8,550 | 6,550 |
Two patterns fall out. The first visa costs roughly AED 8,500 in Dubai and at the Sharjah technology zones, so a cheap licence does not buy a cheap first employee. The second visa is where zones diverge, from AED 3,200 to AED 6,550. Our guide to UAE visa quotas in free zones covers what you can hold, and our free zone company setup page itemises each package by visa count.
Quick Math: Two visas costs AED 27,600 at Meydan and AED 24,600 at IFZA. That AED 3,000 is roughly one medical, Emirates ID and stamping cycle, or about AED 83 a month across a three year visa. Real money, but not a reason to accept a worse activity fit.
Why can nobody quote you IFZA's official price?
Because IFZA does not publish one. BusinessDubai.ae checked three IFZA properties in September 2026: the ifza.com homepage, the Set Up Your Business page, and IFZA's own 21 page Dubai Company Formation Guide, copyright IFZA 2025. None contains a single AED figure for an IFZA licence [2].
The guide is the strongest evidence. It runs 21 pages on UAE tax rates, visa steps and Emirates ID, generic education true of any zone, and ends by telling the reader to "Connect with an IFZA Professional Partner." IFZA sells only through authorised partners, each setting its own bundle on top of whatever IFZA charges it. Hence three quotes, three numbers.
Meydan is the opposite. Its AED 12,500 licence page states what is included (trade licence, registration, portal access, flexi-desk) and what is excluded (residence visa, medical and Emirates ID, office upgrades) [1].
Real Talk: Every IFZA price you will see, including the AED 12,900 and AED 24,600 here, is a partner price, not IFZA's price. Treat any page presenting an IFZA figure as "IFZA's official cost" as unreliable on everything else too. Ask your consultant in writing to split the zone fee from their fee.
What does the real first year cost at each zone?
A realistic Dubai first year is AED 21,050 at Meydan and AED 21,400 at IFZA with one investor visa, all in. Meydan's own retail line items added up come to roughly AED 22,100 for the same shape, so the package route prices below buying each piece separately [1][3].
The table itemises a one visa company at each zone, with the year two row price lists omit.
| Cost item | Meydan (AED) | IFZA (AED) | Notes |
|---|---|---|---|
| Licence, 3 activities, 3 shareholders | 12,500 | 12,900 | Published at Meydan, partner price at IFZA [1][2] |
| Package with 1 residence visa | 21,050 | 21,400 | All in, BD 2026 pricing [15] |
| Package with 2 residence visas | 27,600 | 24,600 | The crossover point [15] |
| Establishment card | 2,000, renewal 2,200 | In the package | Priced separately at Meydan [3] |
| Visa allocation, then the visa | 1,850, then 3,500 | In the package | Investor visa from about 4,000 [3] |
| Medical and Emirates ID | 2,250 | In the package | Meydan assistance fee [3] |
| Office upgrade | 3,500 a month desk, 30,000 a year office | Not published | Shared office 15,000 a year [3] |
| Year two renewal | About 80% of year one | About 80% of year one | Registration drops away, cards do not [15] |
At one visa the prices differ by less than a single medical test, so decide on activity fit and your seller. At two visas, AED 27,600 against AED 24,600 is a real decision.
Based on our experience: The line that surprises founders is never the licence. It is the establishment card, the medical and Emirates ID cycle and the e-channel deposit, which arrive after the file is open. When a quote is one number with no schedule behind it, ask which of those sit inside it.
Pro Tip: Ask for the year two renewal price in the same email as the year one quote, before you pay anything. A promotional first year reverting to standard pricing is legal, common and invisible in a headline. One email removes the commonest year two surprise.
How many visas can you get, and what office do you need?
Meydan states up to six visa allocations per licence at its base flexi-desk tier, at AED 1,850 per allocation before the visa itself [3]. IFZA publishes no quota table, and professional guides contradict each other, quoting one to three, up to six and up to seven for one package. Get your quota in writing.
Office tier is what the quota hangs on. Meydan includes flexi-desk access, then prices a dedicated desk at AED 3,500 a month, a shared office at AED 15,000 a year and a dedicated office at AED 30,000 a year [3]. IFZA publishes none of these, so office cost in its quotes is partner set.
| Factor | Meydan Free Zone | IFZA |
|---|---|---|
| Visa allocations at base tier | Up to 6, stated by the zone [3] | Not published, partner confirms |
| Cost per visa allocation | AED 1,850 before the visa [3] | Bundled into the package |
| Desk included in the licence | Yes, flexi-desk | Yes, flexi-desk |
| Published office price ladder | AED 3,500 a month to AED 30,000 a year [3] | None published |
Real Talk: For an investor visa at either zone the shareholder must show a minimum of AED 75,000 in a bank account, in the UAE or the home country. Neither zone publishes this, and it surfaces after the licence is paid for. Read our UAE investor visa requirements guide and plan the timing before you file.
Which business activities can you licence at each zone?
Meydan states 2,500 or more activities on its Standard licence and 1,800 or more on the Fawri instant product [1]. IFZA publishes no activity count anywhere on ifza.com. Figures in circulation for IFZA run from about 800 to over 2,500, and none comes from IFZA itself.
Both zones issue the same two working licence classes, a professional licence for consultancy and services and a commercial licence for trade, with a branch route for a foreign parent [2]. The practical difference is confirmation, not breadth.
Common Mistake: Repeating an IFZA activity count. You will see "1,500+", "2,000+" and "2,500+" across competing pages, sometimes inside one publisher's two articles, while independent portal checks in 2026 returned figures in the low 800s. IFZA publishes no authoritative number, so all that matters is whether your own activity is listed.
Is IFZA actually a Dubai free zone?
IFZA is a Dubai operation but not a free zone authority. IFZA is a commercial operator selling company formation inside Dubai Silicon Oasis. In law those companies are licensed by the Dubai Integrated Economic Zones Authority under Dubai Law No. 16 of 2021, which supervises Dubai Silicon Oasis and Dubai Airport Free Zone [5].
Article 23(a) is explicit: no person or entity may conduct any activity within the free zone unless licensed by DIEZA. The licence on your wall is a Dubai Silicon Oasis licence, and IFZA is the brand that put it there. Meydan runs its own companies regime under its own published regulations [4].
Common Mistake: Believing IFZA is in Fujairah. IFZA moved to Dubai Silicon Oasis in 2020, and the claim is still live on Quora and inside a competitor's URL slug. It matters: your registered address decides which authority handles amendments, and a bank reads the zone on the licence, not the brand on the invoice.
What kind of company do you actually own at Meydan?
A "Company" or a "Branch", and nothing else. Meydan's own Companies and Licensing Regulations 2022 define exactly two forms, set shareholders at a minimum of one and a maximum of 100, mandate no minimum share capital, and state that the UAE Federal Commercial Companies Law does not apply inside the Authority [4].
Three consequences follow. Meydan never uses the terms FZE or FZCO, so a quote offering a "Meydan FZCO" is market shorthand. The AED 100,000 share capital figure on many pages is suggested for banking, not required by law. And your shareholder rights come from Meydan's regulations, not federal law. IFZA publishes no equivalent document.
Common Mistake: Quoting "maximum 50 shareholders" for Meydan. The zone's own 2022 regulations say 1 to 100 [4]. It matters if you are planning an ESOP, a friends and family round or a holding structure with several investors, and changing it later needs a Special Resolution at 75% of votes.
Is IFZA or Meydan a VAT Designated Zone?
Neither is. The Federal Tax Authority's Designated Zone list for Dubai covers Jebel Ali Free Zone, DUCAMZ, the DAFZA Industrial Park Free Zone at Al Qusais, Dubai Aviation City, Dubai Airport Free Zone, International Humanitarian City and Dubai CommerCity [6]. Neither Meydan nor Dubai Silicon Oasis appears on it.
Standard UAE VAT at 5% applies in full at both zones, with mandatory registration above AED 375,000 of taxable supplies and voluntary registration above AED 187,500 [12]. None of the 27 pages ranking for this comparison addresses that. The status is also narrower than founders assume: it treats certain goods transactions as outside the UAE and does nothing for services [7]. Our Designated Zone VAT guide sets out which transactions qualify.
Common Mistake: Treating "free zone" and "Designated Zone" as the same thing. They are separate regimes with separate lists. A company can be eligible for the free zone corporate tax rate while sitting in a zone that gets no VAT relief, which is the position at both zones.
Can an IFZA or Meydan company reach the 0% corporate tax rate?
That is decided by your activity, not your zone. Ministerial Decision No. 229 of 2025, Article 2(1), sets a closed list of 14 Qualifying Activities with no general services catch-all. Consulting, marketing, agency work, IT services, recruitment and general trading are all absent, so a typical consultancy gets the same answer at both zones: no 0% [8].
The list runs to manufacturing, commodities trading, holding shares, ship management, reinsurance, fund and wealth management, headquarters and treasury services, aircraft leasing, logistics, and distribution from a Designated Zone, which is closed at both because neither sits in one [6]. If you do qualify, de minimis caps non qualifying revenue at the lower of 5% of revenue or AED 5,000,000, and a breach costs the status for that period plus four more, at 9% with no AED 375,000 band [8][9].
| Tax position | IFZA company | Meydan company |
|---|---|---|
| VAT rate | 5%, no Designated Zone relief [6] | 5%, no Designated Zone relief [6] |
| Corporate tax if not a QFZP | 0% to AED 375,000, 9% above [9] | 0% to AED 375,000, 9% above [9] |
| Corporate tax if a QFZP | 0% on Qualifying Income, 9% on the rest, no nil band [9] | Same [9] |
| Small Business Relief | Under AED 3,000,000 if not a QFZP [10] | Same [10] |
| Mandatory audit | If a QFZP, or above AED 50,000,000 revenue [11] | Same [11] |
Every row is identical, which is the finding. Our Qualifying Free Zone Person guide works through the conditions in full.
What does a service company at either zone actually pay in tax?
Most pay nothing, and not through the free zone route. A consultancy earning under AED 3,000,000 elects Small Business Relief and is treated as having no taxable income, for tax periods ending on or before 31 December 2029 under Ministerial Decision No. 131 of 2026 [10]. Failing the QFZP test is what makes that possible.
That date matters because much live content still says 31 December 2026. It was correct only until 29 July 2026, when Ministerial Decision No. 131 of 2026 amended Ministerial Decision No. 73 of 2023 [10]. Relief is elected on the return every period, and a loss in an electing period cannot be carried forward.
Quick Math: A consultancy billing AED 1,400,000 with AED 500,000 of costs has AED 900,000 of profit. As a Qualifying Free Zone Person on non qualifying income that is 9% from the first dirham, about AED 81,000. Electing Small Business Relief instead, it is nil [9][10]. Not qualifying is worth AED 81,000 a year.
How fast can you go from application to trading?
Meydan publishes day counts and IFZA does not. Meydan processes the Standard licence within 24 hours and issues its Fawri instant licence in under 60 minutes online at AED 15,000, with a money back guarantee if it misses the hour and one free amendment included [1]. Fawri is limited to LLCs.
After the licence both zones run the same immigration sequence, and that sequence sets your real start date: establishment card, entry permit or status change, medical and biometrics, then Emirates ID and stamping. Two to four weeks on a single shareholder file, longer if a document needs attestation. IFZA states no timeline; partner pages advertise three to five business days, which comes from the sales channel.
Can you sell to mainland Dubai clients from either zone?
You can invoice a mainland client from either zone, but you cannot operate inside mainland Dubai without a mainland presence: a dual licence or branch, or a separate Department of Economy and Tourism licence. The tax consequence is identical at both zones and turns on the de minimis cap, not the zone you picked [8].
| Factor | Free zone (IFZA or Meydan) | Dubai mainland |
|---|---|---|
| Licence, no visa | AED 12,500 to 12,900 [15] | From about AED 15,000 [15] |
| Licence with one investor visa | AED 21,050 to 21,400 [15] | About AED 22,500 to 26,355 [15] |
| Foreign ownership | 100% | 100% for most activities |
| Selling to mainland UAE clients | Through a branch or dual licence | Direct |
| Office requirement | Flexi-desk included | Ejari tenancy required |
| Mainland revenue and the QFZP cap | Counts against the de minimis cap [8] | Not applicable |
Our free zone company setup and mainland company setup pages price each route with the year two renewal included.
Real Talk: If your customers are UAE businesses and always will be, neither zone is your cheapest answer once the branch is added. Start on the mainland. If you only need a vehicle to invoice remote clients with no residency, our offshore company formation team can price that instead.
Which zone opens a bank account faster?
Neither zone opens the account, the bank does. In practice WIO and Mashreq Neo open readily for free zone companies from both zones and are where most single shareholder files land. Traditional branch banks apply more scrutiny to flexi-desk companies, and that applies equally to an IFZA licence and a Meydan one.
What decides the outcome is your file: an activity matching what you will really invoice, named counterparties you can show, and a source of funds story that survives one follow up question. There is no fully remote account opening in the UAE. The signatory must be present and the bank must see the business.
Based on our experience: The decline reason we see most often is a mismatch between the activity on the licence and the invoices in the pack, such as a general trading licence presented with consultancy invoices. It costs nothing to fix at licensing stage and a rejected application afterwards. Our corporate bank account guide lists what each bank asks for.
What has to be filed every year to keep either licence alive?
The federal calendar is identical at both zones: corporate tax registration within three months of incorporation for entities formed on or after 1 March 2024, an AED 10,000 penalty for registering late, the return and payment nine months after the period ends [12], and a UBO register filed and updated within 15 days [13].
Two things have changed that older guides get wrong. Economic Substance Regulations notifications were cancelled for financial years ending after 31 December 2022, so a company formed in 2023 or later has no live ESR filing [14]. And audit is not a flat rule: it bites at AED 50,000,000 of revenue for an ordinary taxable person, or at any revenue for a Qualifying Free Zone Person [11].
Year two is when the licence stops being the founder's job, because the renewal, the UBO update, the tax return and the visa renewals all land within a few months of each other. Our post-setup services team runs that calendar.
What does year two, and leaving, actually cost?
Budget about 80% of year one for a straight renewal at either zone, because the one time registration fee drops away while the licence, the establishment card and the visa cycle do not [15]. Founders report real renewals landing 35% to 60% above what year one marketing implied, and the gap is almost always the same four items.
Those items are the establishment card invoiced separately, the e-channel deposit, compliance work that did not exist in year one, and a promotional first year reverting to standard pricing. Meydan prices the card renewal at AED 2,200 against AED 2,000 [3]. IFZA publishes nothing, so your renewal number is whatever your partner sends.
Leaving costs money too, and neither zone publishes a consolidated exit schedule. A clean exit has four lines: visa cancellation for every resident, licence or company cancellation, establishment card and immigration clearance, and corporate tax deregistration. Because no published total exists at either zone, treat any single exit figure you are quoted as an estimate until you have those four lines itemised in writing. Ask for them before you sign, not when you want out, because by then you have nothing left to bargain with.
Common Mistake: Reading "renewal is the same as year one" and budgeting exactly that. It is not the same, because the composition changes, and the composition is what bites. A partner who will not commit to an itemised renewal figure in writing is telling you what year two will feel like.
Can you switch partner, or move from IFZA to Meydan?
Yes, and there is no penalty. Switching partner or switching zone costs the same as the package price, so moving between IFZA partners, or from Meydan to IFZA, costs what a new package costs and nothing extra [15]. This is the most common unanswered question in this market, and no competing page answers it.
It matters because the partner who sells you an IFZA licence becomes your renewal contact, and the same lock in appears at Meydan when a founder buys through a reseller. It is commercial, not legal. If you move zones, form the new entity first, move the bank account, then transfer or cancel the visas, then cancel the old licence.
Real Talk: If you are unhappy with your partner, do the arithmetic before sitting through another renewal. A fresh two visa package is AED 24,600 at IFZA and AED 27,600 at Meydan [15]. If the partner costs you weeks of delay a year, a package price is fair value. If they are merely slow to answer email, it is not.
How do IFZA and Meydan compare with cheaper zones outside Dubai?
Both are Dubai prices, and Dubai is not the cheapest emirate. On the like for like one visa basis, ANC Free Zone in Ajman is AED 10,800 against AED 21,050 at Meydan and AED 21,400 at IFZA. The trade off is the address, the bank's view of it, and the drive if you attend in person [15].
Corporate tax, VAT and 100% foreign ownership are identical across this table, so the only variables are price, address and quota.
| Base | Licence only (AED) | With 1 visa (AED) | With 2 visas (AED) | Emirate |
|---|---|---|---|---|
| Meydan Free Zone | 12,500 | 21,050 | 27,600 | Dubai |
| IFZA | 12,900 | 21,400 | 24,600 | Dubai |
| Expo City | 12,500 | 21,050 | 24,550 | Dubai |
| Dubai South | 12,500 | 21,050 | 27,600 | Dubai |
| SRTIP | 5,510 | 13,990 | 17,795 | Sharjah |
| SPC Free Zone | 5,765 | 14,255 | 18,705 | Sharjah |
| Ajman Free Zone | 5,555 | 13,131 | 17,171 | Ajman |
| ANC Free Zone | 4,888 | 10,800 | 16,200 | Ajman |
| RAKEZ | 6,010 | 12,010 | 18,010 | Ras Al Khaimah |
| Masdar City | 7,000 | 17,500 | 23,350 | Abu Dhabi |
One number deserves attention. Expo City, a Dubai zone, is AED 24,550 at two visas, AED 50 below IFZA and AED 3,050 below Meydan. If the second visa is pushing you towards IFZA, price Expo City and Dubai South on the same basis first.
If you never need a Dubai address, Ajman is the cheapest complete package in the country and our business setup in Ajman page shows what AED 10,800 buys. Sharjah's technology zones sit near AED 14,000 with one visa on our business setup in Sharjah page, and our cheapest UAE free zones ranking compares them all.
Who should pick IFZA, and who should pick Meydan?
Pick Meydan if you are a solo founder who wants a published price you can verify before speaking to anyone, or if you need a licence today. Pick IFZA if you are running two or more visas, where the AED 3,000 gap keeps widening. At one visa, choose on activity fit and on your seller.
| Your situation | The answer | Why |
|---|---|---|
| Solo founder, no visa or one visa | Dead heat on price | AED 350 to 400 apart, so decide on activity fit and the partner |
| Two or more visas planned | IFZA | AED 3,000 cheaper at two, second visa AED 3,200 against AED 6,550 [15] |
| You want to verify the price yourself | Meydan | It publishes licence, visa, card, medical and office fees [1][3] |
| You need a licence within the hour | Meydan Fawri | AED 15,000, under 60 minutes, LLCs only [1] |
| Goods business needing Designated Zone VAT | Neither | Neither zone is on the FTA list [6] |
| Most revenue from UAE mainland clients | Neither alone | Price a mainland licence or a branch instead |
| Budget is the only constraint | Ajman or Sharjah | ANC at AED 10,800 with one visa [15] |
Our IFZA free zone setup guide and Meydan free zone setup guide cover process, documents and renewal zone by zone.
What do founders get wrong when comparing these two zones?
Five mistakes account for almost every bad outcome here, and four are made before anything is signed: comparing the wrong basis, treating a partner price as a zone price, assuming the free zone delivers 0% tax, assuming free zone means VAT relief, and budgeting year two from year one marketing.
| The mistake | What it costs | The fix |
|---|---|---|
| Comparing licence only prices | The wrong zone at 2+ visas, AED 3,000 and rising | Compare at the visa count you will hold in month 12 |
| Treating AED 12,900 as IFZA's published price | Three quotes and no idea which is real | Ask for the zone fee and the service fee separately |
| Assuming a free zone licence means 0% tax | 9% from the first dirham for a QFZP that does not qualify | Check your activity against MD 229 of 2025 Article 2(1) [8] |
| Assuming free zone means VAT relief | 5% VAT on everything, unbudgeted | Neither zone is a Designated Zone [6] |
| Budgeting year two at the year one headline | Renewal 35% to 60% above expectation | Get the itemised renewal figure in writing first |
The fifth is quieter. Founders pick a zone on AED 350 and then find that what they needed, a specific activity name, a sixth visa slot or a partner who answers email, was never in the comparison.
Real Client Stories
These are real examples from businesses we have helped set up. Names have been changed for privacy.
Daniel's management consultancy (Meydan Free Zone)
Daniel, a British consultant invoicing clients in London and Riyadh, wanted the cheapest Dubai licence that carried residency. We placed him at Meydan on the one visa package at AED 21,050 rather than IFZA at AED 21,400, because AED 350 was not worth a zone that would not show him a price list. The surprise came at the visa stage: as shareholder he had to show AED 75,000 in a bank account, and his cash sat in a UK business account mid quarter. It cost him nine days. His comment: "Nobody mentioned the capital until the licence was paid for."
Priya and Arjun's design agency (IFZA)
Two Indian co-founders needed two residence visas from day one for a branding agency serving European clients. Their first quote compared the zones on licence only price and recommended Meydan. On the two visa basis the real numbers were AED 27,600 at Meydan and AED 24,600 at IFZA, so we moved them and saved AED 3,000. They had also been told the agency would pay 0% tax. Agency work is not a Qualifying Activity, so they elected Small Business Relief and paid nil anyway. Arjun: "We nearly chose on the wrong row."
The founder who wanted out of his partner, not his zone
An Egyptian ecommerce founder came to us in year two convinced he was locked into the consultant who sold him his IFZA licence, after four months of unanswered renewal emails. He was not locked in. Switching partner, or zone, costs the same as the package price and carries no separate penalty, so he moved to a fresh two visa package at AED 24,600 and kept his activity. He had assumed leaving would cost a transfer fee nobody would quote. "I paid for a year of silence because I never asked."
Your next steps on IFZA versus Meydan
Three decisions matter here and only one is price. Your visa count, because at zero or one visa the zones are AED 350 apart and at two visas AED 3,000 apart the other way. What you are buying and from whom, because Meydan shows you a fee schedule and IFZA shows you a partner. And your activity, because it sets your tax position identically at both. Corporate tax, VAT and foreign ownership are federal, so anyone selling a zone on a tax advantage has not read Ministerial Decision No. 229 of 2025.
BusinessDubai.ae has completed 700+ company registrations across the UAE, including both zones, with itemised pricing and no hidden fees. We will price a free zone company setup at each zone on your real visa count, put a mainland company setup beside it if your clients are local, and give the renewal calendar to our post-setup services team.
Compare both zones on your numbers→
Frequently Asked Questions
Is IFZA cheaper than Meydan Free Zone in 2026?
Only above one visa. IFZA is AED 12,900 licence only against Meydan's AED 12,500, and AED 21,400 with one visa against AED 21,050. At two visas IFZA is AED 24,600 against AED 27,600, a saving that widens with each further visa.
Which zone should a solo founder with one visa choose?
Either, on price. At one visa the packages are AED 21,050 at Meydan and AED 21,400 at IFZA. Choose instead on whether your exact activity is confirmed in writing and on the consultant selling it.
How are these IFZA and Meydan prices confirmed?
Meydan's figures are published on meydanfz.ae and can be checked line by line. IFZA publishes no price anywhere, so every IFZA figure here is a partner package price BusinessDubai.ae transacts at in 2026, not an IFZA rate.
Can I get a UAE residence visa through both IFZA and Meydan?
Yes. Both zones issue residence visas for shareholders and employees, and the process after the licence is identical: establishment card, entry permit, medical test, Emirates ID and stamping. Meydan states up to six visa allocations at its base tier.
Which free zone has better bank account acceptance?
Neither zone decides this, the bank does. WIO and Mashreq Neo open readily for companies from both zones as of 2026, while traditional branch banks apply more scrutiny to flexi-desk companies regardless of zone.
Do IFZA and Meydan companies pay UAE corporate tax?
Usually nothing, but not because they sit in a free zone. A company that is not a Qualifying Free Zone Person pays 0% up to AED 375,000 and 9% above, and one under AED 3,000,000 can elect Small Business Relief until 31 December 2029.
Can I sell to mainland UAE customers from IFZA or Meydan?
You can invoice mainland customers from either zone, but operating inside mainland Dubai needs a branch, a dual licence or a Department of Economy and Tourism licence. For a Qualifying Free Zone Person, mainland revenue counts against the de minimis cap.
How long does it take to set up an IFZA or Meydan company?
Meydan issues its Standard licence within 24 hours and its Fawri instant licence in under 60 minutes online at AED 15,000. IFZA publishes no official timeline. The residence visa sequence takes roughly two to four weeks after the licence.
Can I switch from Meydan to IFZA later, or change partner?
Yes, and there is no separate penalty. Switching partner or zone costs the same as the package price, so a fresh two visa IFZA package costs AED 24,600 as of 2026. Form the new entity before cancelling the old licence.
Which zone is better for an ecommerce business?
Neither has an ecommerce advantage. Both issue commercial licences covering trading, and neither is a VAT Designated Zone, so 5% UAE VAT applies in full at both. Decide on visa count and on whether your exact activity name is confirmed.
What is Meydan Free Zone?
Meydan Free Zone is a Dubai free zone running its own companies regime under its Companies and Licensing Regulations 2022, with two entity forms, a "Company" of 1 to 100 shareholders and a "Branch". Its Standard licence is AED 12,500.
Which Dubai free zone is best for a startup in 2026?
For a one visa startup, Meydan, Dubai South and Expo City all sit at AED 21,050 and IFZA at AED 21,400. For a two visa startup, Expo City at AED 24,550 and IFZA at AED 24,600 beat both at AED 27,600.
What is the cheapest UAE free zone package with one visa?
ANC Free Zone in Ajman at AED 10,800 with one visa as of 2026, followed by RAKEZ at AED 12,010 and Ajman Free Zone at AED 13,131. A licence only price elsewhere is not comparable, because it carries no residence visa.
Can a foreigner own 100% of an IFZA or Meydan company?
Yes, 100% foreign ownership applies at both zones with no local partner and no local service agent, and the same is now true of most mainland activities since the 2021 federal reforms. The 51% Emirati shareholder rule is years out of date.
Is IFZA based in Fujairah or Dubai?
Dubai. IFZA moved its operation to Dubai Silicon Oasis in 2020, and companies sold under the IFZA brand are licensed by the Dubai Integrated Economic Zones Authority under Dubai Law No. 16 of 2021. The Fujairah claim is stale.
What happens if I do not renew a free zone licence on time?
Late renewal attracts monthly penalties at both zones, and an expired licence blocks visa renewals, bank transactions and amendment filings. Left long enough the company is struck off and its residence visas fall away. Diarise renewal 45 days ahead.
How does a Meydan dual licence or mainland branch work?
It gives a free zone company a mainland presence so it can trade inside Dubai directly, by registering a branch with the Department of Economy and Tourism. It is an additional licence with its own annual cost and office requirement, not an upgrade.
How much does an IFZA or Meydan renewal cost?
Budget about 80% of year one at either zone, so roughly AED 17,000 to 17,500 on a one visa package, then add what the headline left out. Meydan renews its establishment card at AED 2,200. IFZA publishes no renewal schedule.
Is IFZA or Meydan a VAT Designated Zone?
Neither is. The Federal Tax Authority's Dubai list covers Jebel Ali Free Zone, DUCAMZ, DAFZA Industrial Park at Al Qusais, Dubai Aviation City, Dubai Airport Free Zone, International Humanitarian City and Dubai CommerCity. Standard 5% VAT applies in full at both.
What does it cost to close an IFZA or Meydan company?
Neither zone publishes a consolidated exit fee, so budget four separate lines: visa cancellation for each resident, licence or company cancellation, establishment card and immigration clearance, and corporate tax deregistration. Ask for each figure in writing before you start.
Does IFZA really have 2,000 or more business activities?
Nobody can confirm that. IFZA publishes no activity count on its own site, and figures in circulation range from about 800 to over 2,500, with independent portal checks in 2026 returning numbers in the low 800s. Meydan states 2,500 or more.
Why do IFZA quotes vary so much between consultants?
Because IFZA sells only through authorised partners and publishes no price list, so each partner sets its own service fee on top of the zone fee. Ask any consultant to separate the two.
Does Meydan have hidden fees?
Meydan publishes more than most zones: licence, visa allocation, establishment card, medical and office prices. What catches people is that the AED 12,500 headline is licence only and excludes the residence visa, the medical and Emirates ID, and office upgrades.
Can I add a business activity to my licence later?
Yes at both zones, for a fee. Both packages include three activities, so a fourth is an amendment. At Meydan it also needs a Special Resolution carrying 75% of shareholder votes and a filing within 15 business days.
Do I need AED 75,000 in the bank for an investor visa?
Yes, at both zones. The shareholder applying must show a minimum of AED 75,000 in a bank account, in the UAE or the home country. Neither zone publishes this and it surfaces at the visa stage.
Does an IFZA or Meydan company need an audit?
In two cases. An ordinary taxable person needs audited financial statements at AED 50,000,000 of revenue, and a Qualifying Free Zone Person needs them at any revenue level. A missed audit can itself cost QFZP status for five tax periods.
References
[1] Meydan Free Zone. Standard Digital Trade License at AED 12,500 and the Fawri instant licence at AED 15,000, including the stated inclusions and the explicit list of what the licence price excludes. Meydan Free Zone
[2] IFZA. Set Up Your Business page and the official Dubai Company Formation Guide (copyright IFZA 2025), both checked for pricing and licence classes. Neither contains an AED figure, and the guide directs readers to an IFZA Professional Partner. IFZA
[3] Meydan Free Zone. Company setup cost breakdown: visa allocation at AED 1,850, establishment card at AED 2,000 (AED 2,200 at renewal), employment visa from AED 3,500, investor visa from about AED 4,000, medical and Emirates ID at AED 2,250, office tiers and the stated six visa allocations. Meydan company setup cost breakdown
[4] Meydan Free Zone. Companies and Licensing Regulations 2022: the "Company" and "Branch" forms, the 1 to 100 shareholder range, the absence of a mandated minimum share capital, the disapplication of the UAE Federal Commercial Companies Law, and the Special Resolution and 15 business day filing rules for amendments. Meydan Companies and Licensing Regulations
[5] Government of Dubai. Dubai Law No. 16 of 2021 establishing the Dubai Integrated Economic Zones Authority, Article 4(a) on its supervision of Dubai Silicon Oasis and Dubai Airport Free Zone, and Article 23(a) on the licensing requirement inside the free zone. Dubai Legislation Portal
[6] Federal Tax Authority. List of Designated Zones under Cabinet Decision No. 59 of 2017 as amended, consolidated list dated September 2021. Neither Meydan Free Zone nor Dubai Silicon Oasis appears in the Dubai section. FTA list of Designated Zones
[7] Federal Tax Authority. Designated Zones VAT Guide (VATGDZ1): what Designated Zone treatment covers for goods, and why services remain standard rated inside a listed zone. FTA Designated Zones VAT Guide
[8] Ministry of Finance. Ministerial Decision No. 229 of 2025 on Qualifying Activities and Excluded Activities: the closed 14 item list at Article 2(1), the de minimis cap at Article 3 and the loss of status rule at Article 5(2). Ministerial Decision No. 229 of 2025
[9] Federal Tax Authority. Federal Decree-Law No. 47 of 2022: 0% up to AED 375,000 and 9% above for an ordinary taxable person, the separate Qualifying Free Zone Person rate structure with no nil rate band, and the loss of status provisions at Article 18. Federal Decree-Law No. 47 of 2022
[10] Ministry of Finance. Ministerial Decision No. 73 of 2023 on Small Business Relief as amended by Ministerial Decision No. 131 of 2026, issued 29 July 2026: revenue threshold of AED 3,000,000, tax periods ending on or before 31 December 2029, the election requirement and the loss carry forward restriction. Ministerial Decision No. 73 of 2023
[11] Ministry of Finance. Ministerial Decision No. 84 of 2025 on Audited Financial Statements, Article 2(1): the AED 50,000,000 revenue limb for ordinary taxable persons and the Qualifying Free Zone Person limb with no revenue threshold. Ministerial Decision No. 84 of 2025
[12] Federal Tax Authority. Corporate tax registration timeline under FTA Decision No. 3 of 2024, the AED 10,000 late registration penalty, the nine month filing and payment deadline, and VAT registration thresholds of AED 375,000 mandatory and AED 187,500 voluntary. Federal Tax Authority
[13] Ministry of Economy. Cabinet Decision No. 109 of 2023 on Regulating the Real Beneficiary Procedures: the UBO register, the 15 day filing window on incorporation and the 15 day update window on any change. Ministry of Economy
[14] Ministry of Finance. Cabinet Decision No. 98 of 2024 amending Cabinet Decision No. 57 of 2020: Economic Substance Regulations notification and reporting cancelled for financial years ending after 31 December 2022, with fines cancelled and refunded. Ministry of Finance
[15] BusinessDubai.ae. Internal data from UAE free zone registrations since 2013, including 2026 package pricing by visa count across eleven zones, the marginal cost of each visa, the AED 75,000 investor visa capital rule, switching costs, renewal behaviour, client setup costs, timelines and case studies. businessdubai.ae









