Ajman vs. Sharjah vs. RAK: A 2026 Cost Comparison Guide for Strategic Business Setup
Everyone wants a business in the UAE in 2026. Its location is perfect. Its economy is strong. And its rules make life easier for investors. The UAE has now entered a phase of economic maturity and national connectivity, supported by major infrastructure developments and a business ecosystem with over 1.4 million active companies as of early 2026.
But, it is not that simple. Many questions, many confusions. First of all, where should you set up?
Ajman, Sharjah, and Ras Al Khaimah (RAK) are three popular options. Each offers low costs, smart policies, and great access to markets. But they’re not the same.
This guide will help you compare them. We’ll break down costs. We’ll look at the pros of each place. And we’ll show you what makes them different.
Why does this matter?
Because choosing the right emirate can save you money. It can also set you up for long-term success. In 2026, as the UAE moves from a reform phase into an enforcement and connectivity phase, these decisions matter more than ever.
Let’s find out which emirate works best for your business dream.
What’s New for 2026
- Etihad Rail passenger services begin rolling out, strengthening national connectivity between emirates
- Unified tax penalty enforcement across corporate tax and VAT
- Updated visa renewal and residency rules affecting investors and business owners
Understanding Free Zones and Mainland Setups
When starting a business in the UAE, you’ll often hear two terms – Free Zone and Mainland. These are two different types of business setups.
Free Zones are special areas that offer benefits to foreign investors. You can own 100% of your company under an established regulatory framework. But you’re usually limited to doing business inside the Free Zone or internationally.
Mainland setups let you trade freely across the UAE. You can work with local markets, government contracts, and more. Under Federal Decree-Law No. 20 of 2025, mainland companies are treated as corporate citizens, allowing them to bid for government tenders on the same basis as national companies.
Ownership and Business Freedom
In Free Zone companies, you get full ownership as a foreigner. No local partner is needed. That’s a big plus for many investors.
In the Mainland, 100% foreign ownership is now the default standard for over 1,000 licensed activities under an established regulatory framework. But depending on the business type, a local service agent may still be required in limited regulated sectors.
Mainland businesses can operate anywhere in the UAE, while Free Zone businesses are mostly limited to within their zone or abroad – unless they partner with a local distributor.
Tax Perks and Other Benefits
Free Zones usually offer 0% corporate tax for qualifying businesses, full profit repatriation, and no import/export duties within the zone.
Mainland companies are now under the UAE corporate tax, but small businesses with revenue under AED 3 million can still get tax relief until the Small Business Relief sunset in 2026.
The 2026 Small Business Relief (SBR) Sunset
From 2026 onward, businesses can no longer assume automatic Small Business Relief, making early tax planning critical as enforcement tightens.
Both setups allow 100% repatriation of profits, and both offer strong legal protections.
Ajman: Affordable Entry with Strategic Access
Ajman Free Zone is one of the most budget-friendly options in the UAE. It’s perfect if you’re thinking about ajman mainland business setup.
Licensing Costs
You can get started from just AED 5,555 for zero-visa packages. That’s one of the lowest rates in the country.
Who It’s For
Ajman mainland business setup is great for SMEs, freelancers, and e-commerce businesses. If you’re testing a new idea or running a lean operation, this zone makes sense.
What You Get
They offer smart offices, warehouses, and co-working spaces. You can scale up as your business grows. New commercial inventory has expanded further with large-scale integrated developments supporting ajman mainland company office space.
Tax Perks
No VAT when you trade within the zone or between other free zones. That means more savings on operating costs.
Business Boom
There’s been a sharp rise in new setups lately, especially among AI-integrated SMEs and fast-growing e-commerce hubs. That’s a strong sign of trust in Ajman’s business environment. Business setup in Ajman mainland is something everyone is thinking about. This momentum is further supported by the Tiger Downtown Ajman integrated city project (4.27 million sqm), updated in January 2026, which is reshaping commercial activity in the emirate.
Ajman Media City Free Zone
If your work is in media, content, or digital services, this Free Zone was built for you.
Industry Focus
It supports media-related businesses with flexible, affordable licensing options.
Why It’s Popular
You get a fast setup and low-cost packages for ajman free zone companies. Great for creatives, content creators, and agencies.
The 2026 Influencer & Solo-Entrepreneur Package
New packages now start from AED 2,500 for single-account setups, designed specifically for influencers, freelancers, and solo digital entrepreneurs.
Sharjah: Cultural Capital with Diverse Opportunities
Sharjah is a strong player in the UAE business scene. Yes, it’s known for its rich heritage too. With multiple Free Zones and Mainland options, it offers something for almost every type of entrepreneur. Business setup in Sharjah is further supported by the emirate’s AED 44.5 billion 2026 budget, with a 17% increase in economic development spending.
Sharjah Airport International Free Zone (SAIF Zone)
SAIF Zone is one of the most established Free Zones in the UAE. It sits right next to Sharjah International Airport. This location makes it a smart choice for international businesses.
Licensing Costs
The rates are competitive, especially considering the range of services and infrastructure. You get good value—modern offices, warehouses, and even labor housing options.
Who It’s For
SAIF Zone is ideal if you’re in aviation, logistics, or manufacturing. Many cargo and trading companies pick this zone for its connectivity and speed.
SAIF Zone Liquidation Update
Company liquidation is now processed with an approximate AED 2,000 fee and an average timeline of three weeks, helping investors plan exits or restructuring more efficiently.
Hamriyah Free Zone
This zone is known for heavy industries and large-scale manufacturing. Its biggest strength? Access to a deep-water port and its own internal road network.
If your business needs space, shipping routes, and cost control, Hamriyah is a great fit. It also offers land for long-term lease, making it a smart choice for factories and industrial hubs.
Sharjah Media City (Shams)
Shams is a newer Free Zone, but it’s growing fast. Built for the creative and media sectors, it’s ideal for content creators, marketers, designers, and tech startups.
What You’ll Like
Shams offers very affordable packages, including freelance and zero-office license options. Licenses now start from AED 5,750. You can set up quickly, even without a physical space, and upgrade later when needed. The infrastructure is sleek and digital-friendly—perfect for modern businesses.
Sharjah Mainland Opportunities
Looking beyond Free Zones? Sharjah Mainland is opening up. Commercial tenants now benefit from the Sharjah Rental Index launched for 2026, bringing more transparency to lease pricing. Connectivity is also improving with the upcoming University City Etihad Rail Station set for 2026.
- Ownership Made Easy
Thanks to new laws, many business types now allow 100% foreign ownership. That means you can have full control—no local partner needed in many sectors. - Access to Local Markets
Unlike Free Zones, Mainland businesses can serve the entire UAE directly. If your goal is to work with local clients, retail, or government contracts, the Mainland setup gives you that reach.
Ras Al Khaimah (RAK): Industrial Hub with Cost Advantages
RAK is rising fast as a go-to spot for serious business. It’s calm, cost-effective, and packed with potential—especially if you’re in trade, logistics, or manufacturing. The emirate is also targeting 3.5 million annual visitors by 2030, signalling long-term economic expansion.
RAK Economic Zone (RAKEZ)
RAKEZ is one of the most affordable Free Zones in the UAE. It offers strong support for all kinds of businesses, from solo entrepreneurs to big factories.
Licensing Costs
You can launch your business for as low as AED 6,000 under the RAKEZ BizStarter package. That’s great value for startups and small businesses.
Industries Covered
RAKEZ welcomes a wide range of sectors. Manufacturing, trading, services, consulting—you name it. The flexibility is a big plus.
Facilities
Need a small office or a big warehouse? RAKEZ gives you both. You can even lease land plots to build your own facility. It grows with your business. This offering is expanding further with RAK Central, a major mixed-use destination opening in 2026, featuring the largest Grade-A office district in the Northern Emirates.
Tax Benefits
Expect corporate tax exemptions and customized packages. The zone is designed to keep your costs low and profits high.
RAK Maritime City Free Zone
If your business touches the sea—shipping, logistics, marine services—this zone is built for you.
Business Focus
RAK Maritime City is perfect for maritime and logistics operations. It offers a full range of port services.
Why Choose It?
It’s in a strategic spot with direct access to shipping lanes. That means smoother trade and faster operations for export-focused businesses. Demand has accelerated due to the “Wynn Effect,” as the upcoming 2027 resort development continues to drive commercial and property interest throughout 2026.
RAK: The Emerging Tech & Blockchain Hub
RAK is increasingly positioning itself as a destination for tech, digital asset, and blockchain-focused companies, supported by flexible licensing, lower operating costs, and growing international investor interest.
Comparative Analysis: Ajman vs. Sharjah vs. RAK
So, which emirate should you choose? Let’s break it down.
Cost Comparison — 2026 Benchmark Table
| Emirate | License Cost (2026) | Visa Package (2026) |
|---|---|---|
| Ajman | AED 5,555 | AED 13,131 (1-Visa Package) |
| RAK | AED 6,000 | AED 16,500 (All-inclusive Visa Package) |
| Sharjah (Shams) | AED 5,750 | AED 11,500 (1-Visa Package) |
Operational Costs
Rent, utilities, and other expenses tend to be lower in Ajman and RAK. Sharjah offers more premium facilities, which can raise costs depending on your needs. In 2026, commuter lifestyle costs in Ajman and RAK remain approximately 30–40% cheaper than Dubai and Abu Dhabi.
Industry Suitability
Ajman
Perfect for startups, freelancers, and online businesses. The ajman mainland business setup is quick, simple, and budget-friendly. This also supports early-stage founders exploring company formation in Ajman at lower entry costs.
Sharjah
Great if you’re in media, education, culture, or light manufacturing. It offers both creative and industrial zones.
RAK
Best for industrial, trading, and export-focused businesses. It’s built for scale and serious growth.
Strategic Advantages
Ajman
Close to Dubai but with much lower costs. A smart pick if you want access without the price tag. Ajman free zone companies can be started with limited budget.
Sharjah
Well-connected to both Dubai and the Northern Emirates. It balances location with sector diversity.
RAK
Offers incentives for industrial development. Plus, it’s excellent for export-heavy businesses with port access and large-scale facilities. Rail connectivity has also improved commute times, with RAK to Abu Dhabi now achievable in approximately 70 minutes via rail in 2026.
Key Considerations for Business Setup in 2025
Before you make your move, here are a few things to keep in mind. These factors can shape your success, especially in today’s fast-moving business world.
Regulatory Changes
Rules in the UAE are changing. In 2026, more sectors now allow 100% foreign ownership under an established regulatory framework. Corporate tax is now in an active compliance enforcement phase, and businesses must plan carefully. Small Business Relief (SBR) ends on December 31, 2026, and a 14% annual interest on late corporate tax payments applies from April 2026.
Tip: Always check the latest policies before you set up. Late registration penalties may still be waived under the Labaih Initiative if the first corporate tax return is filed within 7 months. Staying compliant saves time and money.
Economic Trends
Not all industries grow the same way. Some sectors—like tech, logistics, AI, digital trade, and clean energy, are booming in 2026. Others are slowing down.
Tip: Choose a business that fits current demand. It gives you a better shot at success.
Infrastructure Developments
Big projects are shaping the future. New roads, ports, airports, and business parks are popping up—especially in RAK and Sharjah. National rail connectivity and integrated mixed-use developments are improving market access and reducing logistics costs in 2026.
Tip: Look at what’s coming next, not just what’s already built.
Talent Acquisition
People matter. Make sure your chosen emirate has access to the skilled workers your business needs. Sharjah and RAK have growing talent pools, and Ajman is catching up too. Wage structures and Emiratisation compliance are now more closely monitored.
Tip: Think about hiring early. It can affect how fast you grow.
New 2026 Visa Renewal Rules
Visa renewals now require stricter documentation, including:
- Ejari or lease registered in the company’s trade name
- UAE utility bill in the visa holder’s name
- Minimum AED 50,000 corporate bank balance maintained during visa processing
How ADEPTS Can Assist You
Setting up a business in the UAE can feel overwhelming. But you don’t have to do it alone.
Expertise You Can Trust
At ADEPTS, our team of seasoned Chartered Accountants knows the ins and outs of the UAE business setup process. We make it easier, faster, and stress-free.
What We Offer
Business Advisory
We help you choose the right emirate, build smart strategies, and plan your market entry based on your goals.
Taxation and Compliance
Worried about taxes or new laws? We make sure your business meets all UAE tax and legal requirements, without the headaches. This includes 2026 Compliance Audits and proactive penalty risk assessments.
Valuation and Mergers
Thinking about growth? We provide accurate business valuations and support for mergers and acquisitions to help you scale safely.
Transfer Pricing
If you’re operating across borders or with multiple entities, we offer full transfer pricing solutions that keep you compliant and efficient.
VAT Credit Recovery
We help businesses recover eligible VAT credits before the 5-year expiry deadline, including credits originating from 2021.
Payroll & Emiratisation Compliance
With the AED 6,000 minimum wage for Emiratis in the private sector effective from January 1, 2026, ADEPTS ensures accurate payroll structuring and compliance reporting.
Golden Visa Eligibility Consultations
We guide entrepreneurs and investors seeking 10-year residency stability through Golden Visa eligibility and application assessments in 2026.
A Focus on You
ADEPTS puts your success first. Every business is different, and we offer customized services to match your exact needs.
Conclusion
Your choice of emirate can shape your future. So look at your budget, industry, and growth goals before making the call.
- Ajman is ideal if you want low costs and easy entry.
- Sharjah gives access to creative, industrial, and local markets.
- RAK is perfect for larger operations, manufacturing, and exports.
FAQs:
Visa offers are quite a few in these emirates. You can get multiple visas for your business. The number will depend on the type of your business. The system is flexible. But, it’s not restrictive. In 2026, partner and investor visa renewals now require verified operational presence and stricter documentation.
Yes. Company switching is as easy as company formation in Ajman. There are quite a few things to do, though. You’ll need to de-register your Free Zone entity and set up a fresh Mainland license. New paperwork, new approvals—but totally doable. Many businesses take this step when they’re ready to expand into the UAE’s local market. This process is now more closely reviewed during visa and bank compliance checks in 2026.
Nope. You can send your profits and capital back home anytime—100%, no limits, no hassles. That’s one of the biggest perks of doing business in UAE Free Zones. This remains unchanged in 2026.
In most Free Zones, it’s fast—usually between 1 to 5 working days if your documents are in order. Mainland setups might take a bit more time due to extra approvals, but overall, UAE is known for efficient processing. However, post-setup compliance and documentation checks are more detailed in 2026.
Yes. Certain activities—like finance, insurance, or legal consulting—may require special approvals or may not be allowed in Free Zones. Always double-check with the authority before finalizing your business activity. Regulatory enforcement around activity mismatches has tightened in 2026.
Not necessarily. Many Free Zones offer flexi-desk or shared office options that still allow you to get a license and visa. However, in 2026, a physical office is mandatory for partner and investor visa renewals. But if you want more visas or plan to store inventory, a physical ajman mainland company office space like a private office or warehouse might be required.
It’s doable, but banks will ask for solid documentation—your license, passport, business plan, invoices, and maybe some client contracts. Free Zone companies can open accounts with both local and international banks, though timelines vary. In 2026, banks strictly scrutinize a minimum 6-month active account history during renewals and compliance reviews.
Small Business Relief (SBR) remains available only until December 31, 2026. After this date, businesses must prepare for full corporate tax compliance without relief.
References
- Federal Tax Authority. Corporate Tax in the UAE. Accessed February 12, 2026.
https://tax.gov.ae/en/corporate.tax.aspx. - Federal Tax Authority. Small Business Relief – Corporate Tax Guide. Accessed February 12, 2026.
https://tax.gov.ae/en/corporate.tax/small.business.relief.aspx. - United Arab Emirates Ministry of Finance. Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. Accessed February 12, 2026.
https://mof.gov.ae/federal-decree-law-no-47-of-2022-on-the-taxation-of-corporations-and-businesses/. - United Arab Emirates Ministry of Economy. Federal Decree-Law No. 32 of 2021 on Commercial Companies. Accessed February 12, 2026. https://www.moec.gov.ae/en/laws-and-regulations.
- Etihad Rail. Passenger Services and UAE National Railway Network. Accessed February 12, 2026.
https://www.etihadrail.ae/. - Ras Al Khaimah Economic Zone (RAKEZ). Business Setup Packages and Facilities. Accessed February 12, 2026. https://rakez.com/.
- Sharjah Airport International Free Zone Authority. Business Setup and Licensing Information. Accessed February 12, 2026. https://www.saif-zone.com/.
- Ajman Free Zone Authority. Company Formation and Licensing Packages. Accessed February 12, 2026.
https://www.afz.ae/.
