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Starting an online business in the UAE sounds straightforward until you face the daunting task of choosing between IFZE vs DMCC, otherwise known as Dubai Multi Commodities Centre. With over 45 free zones spread across the Emirates, each with distinct fee structures, visa allocations, and operational requirements, selecting the wrong jurisdiction can drain your resources before your first sale.
The UAE e-commerce market has reached USD 11.05 billion in 2025 and is projected to hit USD 20.54 billion by 2030. Over 11 million online shoppers now browse UAE platforms monthly, with mobile commerce driving 75% of transactions. This presents a substantial opportunity for entrepreneurs who position themselves correctly from the outset.
This blog covers three leading Free Zones IFZA, DMCC, and RAKEZ, to see which is best for e-commerce. By the end, you’ll know which one fits your budget, growth plan, and how you run your business.
The International Free Zone Authority (IFZA) relocated from Fujairah to Dubai Silicon Oasis in 2020, positioning itself as a cost-effective gateway for startups and SMEs. The free zone has licensed over 10,000 companies since its inception, with approximately 60% operating service-based businesses.
Set up costs and packages
IFZA company formation begins at AED 12,900 for a zero-visa package, making it among the most affordable options in Dubai. A single visa package costs approximately AED 14,900, whilst multi-year commitments can reduce annual expenses by up to 30%.
| Package Type | Starting Cost (AED)* |
|---|---|
| Zero Visa | 12,900 |
| 1 Visa | 14,900 |
| 2 Visa | 16,900-18,500 |
| 3-Year Licence | 43,470 |
The process of registration usually takes around 3-5 working days and can be fully performed remotely. There is no requirement for the shareholders to be physically present at the time of incorporation.
E-commerce suitability
IFZA allows the grouping of up to three activities under a single license at no extra charge, while additional activities are charged at AED 1,000 each. The flexibility to accommodate well with e-commerce operators who wish to combine trading with consulting or digital marketing services.
Most importantly, IFZA does not require actual office space for simple licence packages. Virtual office arrangements suffice for online businesses without employee requirements, reducing overhead substantially.
Limitations of IFZA
Whilst IFZA vs DMCC comparisons often favour IFZA on price, the newer Free Zone lacks the established banking relationships and brand recognition that DMCC commands. Account opening may require additional documentation or banking consultant support.
Dubai Multi Commodities Centre has been crowned Global Free Zone of the Year by the Financial Times’ fDi Magazine nine times in a row. Home to over 26,000 registered companies contributing 11% of Dubai’s annual foreign direct investment, DMCC represents the premium tier of UAE Free Zones.
Setup costs and packages
DMCC company formation starts at approximately AED 15,000 for basic licences, with first-year totals ranging from AED 30,000 to AED 60,000 depending on activities, office selection, and visa requirements.
| Cost Component | Typical Range (AED) |
|---|---|
| Trade Licence | 15,000-20,000 |
| Registration Fee | 6,000-8,000 |
| Flexi-Desk (Annual) | 15,000-25,000 |
| Visa per Person | 3,500-5,500 |
The registration process takes approximately 2-3 weeks, longer than IFZA but still efficient by international standards.
E-commerce suitability of DMCC
DMCC excels for e-commerce businesses targeting scale and credibility. The free zone permits up to six activities under one licence and offers dual licensing, enabling companies to operate across both free zone and mainland markets simultaneously.
The zone’s strategic location in Jumeirah Lakes Towers provides proximity to Metro lines, airports, ports, and talent pools. For businesses requiring physical presence, DMCC offers co-working spaces, flexi-desks, and full office suites within a vibrant commercial community.
Unique Advantages
DMCC remains one of the few UAE Free Zones offering crypto commodity trading licences and supports emerging sectors including AI, gaming, and Web3 ventures. The free zone’s banking relationships rank among the strongest, though account approval timelines have extended to 6-8 weeks as compliance requirements tighten.
RAKEZ company formation emerged from the 2017 merger of RAK Free Trade Zone and RAK Investment Authority. Located in Ras Al Khaimah, the free zone now hosts over 23,000 companies from more than 100 countries across 50 industries.
Setup costs and packages
RAKEZ licence costs rank among the UAE’s most competitive, with e-commerce packages starting from AED 6,000 to AED 15,000 annually. The starter package with one visa begins at approximately AED 8,240, often including a free residence visa.
| Package Type | Starting Cost (AED) |
|---|---|
| E-commerce Basic | 6,000-8,000 |
| 1 Visa Starter | 8,240-11,540 |
| General Trading + E-commerce | 11,000-15,000 |
| Industrial Licence | 15,000+ |
Registration completes within 5-10 working days, with remote setup available for most licence types.
E-commerce suitability of RAKEZ
RAKEZ has a specific e-commerce license that covers online trading, digital marketplace, dropshipping, and SaaS businesses. The free zone allows combining general trading activity with e-commerce, thus permitting the combination of business activities involving online and wholesale transactions.
For businesses requiring storage or fulfilment infrastructure, RAKEZ offers access to warehouses and industrial plots at prices significantly below the alternatives in Dubai. Proximity to Saqr Port and RAK Airport enables import-heavy e-commerce models.
Additional Incentives
RAKEZ has a special BusinessWomen programme with 40% reduced fees for women entrepreneurs. Its residency visa requires you to be physically present there only once a year, thereby allowing flexibility for digital nomads and remote workers.
| Factor | IFZA | DMCC | RAKEZ |
|---|---|---|---|
| Minimum Setup Cost | AED 12,900 | AED 30,000+ | AED 6,000 |
| Location | Dubai (DSO) | Dubai (JLT) | Ras Al Khaimah |
| Registration Time | 3-5 days | 2-3 weeks | 5-10 days |
| Physical Office Required | No | Yes (Flexi-desk minimum) | No |
| E-commerce Licence | Yes | Yes | Yes |
| Dual Licensing | Limited | Yes | Limited |
| Banking Ease | Moderate | Strong | Moderate |
| Global Recognition | Growing | Excellent | Good |
| Warehouse Access | Limited | Limited | Excellent |
Choose IFZA if you:
Choose DMCC if you:
Choose RAKEZ if you:
The IFZA vs DMCC debate ultimately focuses on budget versus brand equity. IFZA delivers comparable legal protections at 30-40% lower costs, whilst DMCC provides unmatched credibility with banks, investors, and international partners.
RAKEZ company formation offers the lowest entry point and suits e-commerce operators requiring physical infrastructure or planning manufacturing activities. The trade-off involves distance from Dubai’s commercial centre and potentially longer banking timelines.
Each Free Zone supports e-commerce effectively. Your selection should align with immediate budget constraints, three-year growth projections, and operational requirements around warehousing, staffing, and market access.
Consulting with a Stratrich Consulting advisor ensures your chosen jurisdiction matches both current needs and future ambitions.
