Updated August 2026. RAKEZ — the Ras Al Khaimah Economic Zone — is the UAE’s leading free zone for manufacturing, industrial operations, and cost-conscious business setups. Created in 2017 from the merger of RAK Free Trade Zone (RAK FTZ) and Ras Al Khaimah Investment Authority (RAKIA), RAKEZ serves over 14,000 companies with business zone licenses from AED 8,000/yr and industrial zone factory units from AED 60,000/yr. Located 50 kilometres north of Dubai, RAK offers 40–60% lower real estate costs than Dubai free zones — a critical advantage for manufacturers, logistics companies, and businesses with warehouse needs. This guide covers RAKEZ business zone vs industrial zone, costs, activities, and key comparisons for 2026.
Key Takeaways
- Business zone license: AED 8,000–12,000/yr (flexi desk) — for services and trading
- Industrial zone factory (250 sqm): AED 80,000–120,000/yr — for manufacturing
- Warehouse (250 sqm): AED 60,000–90,000/yr
- 6,000+ approved activities — one of the broadest activity lists in the UAE
- 40–60% cheaper than comparable JAFZA or Dubai free zone industrial space
- Saqr Port access: RAK’s dedicated deep-water port for bulk commodity exports
- Year 1 (business zone): AED 25,000–50,000; industrial zone: AED 120,000–300,000+
What Is RAKEZ? The Merger Behind the Brand
RAKEZ was formed in 2017 when the government of Ras Al Khaimah merged two established free zone authorities — RAK Free Trade Zone (RAK FTZ, founded 2000) and Ras Al Khaimah Investment Authority (RAKIA, founded 2005) — into a single unified economic zone authority. The merger combined RAK FTZ’s strengths in business licensing and light manufacturing with RAKIA’s industrial zone capabilities and government investment portfolio.
The result is one of the UAE’s most comprehensive free zone offerings, capable of serving everything from a one-person consulting firm (business zone flexi desk at AED 8,000/yr) to a heavy manufacturing facility occupying 10,000+ square metres of dedicated industrial land. RAKEZ’s mandate is to attract investment to Ras Al Khaimah (RAK), UAE’s northernmost emirate, by offering significantly lower operating costs than Dubai and Abu Dhabi while providing infrastructure that matches or exceeds what those emirates offer.
As of 2026, RAKEZ hosts over 14,000 companies from more than 100 countries. The free zone spans multiple zones across RAK, including the Business Centre (commercial activities), the Industrial Zone (manufacturing and logistics), the Academic Zone (education institutions), and the Technology Zone (tech and innovation companies).
RAKEZ Business Zone vs Industrial Zone
RAKEZ operates two fundamentally different zone types that serve very different business needs:
- RAKEZ Business Zone: For service companies, trading businesses, consultancies, and professional services. Companies in the business zone can take a flexi desk or a small private office in the RAKEZ Business Centre. No manufacturing or warehousing is allowed in this zone. Costs: AED 8,000–12,000/yr for the license + flexi desk fee.
- RAKEZ Industrial Zone: For manufacturing companies, logistics operators, and businesses that need a physical factory, warehouse, or production facility. The industrial zone offers pre-built factory units, warehouses, open plots, and a customs bonded zone with direct road access to the RAK port network. Costs: AED 60,000–120,000/yr for standard units (250 sqm), scaling up significantly for larger facilities.
This distinction is important: a business zone RAKEZ license cannot be used to run a physical manufacturing or warehousing operation. Conversely, an industrial zone RAKEZ license is designed specifically for businesses that need the physical facility.
RAKEZ License Fees and Package Breakdown 2026
| Zone / Package | Annual License | Facility Cost | Visa Quota |
|---|---|---|---|
| Business Zone (Flexi Desk) | AED 8,000–12,000 | Included in package | Up to 3 |
| Business Zone (Private Office) | AED 10,000–14,000 | AED 20,000–50,000/yr | Per sqm ratio |
| Industrial Zone (Warehouse 250 sqm) | AED 10,000–14,000 | AED 60,000–90,000/yr | Unlimited (per sqm) |
| Industrial Zone (Factory 250 sqm) | AED 12,000–16,000 | AED 80,000–120,000/yr | Unlimited (per sqm) |
| Industrial Zone (Open Plot) | AED 12,000–18,000 | AED 25–45/sqm/yr | Unlimited |
In the industrial zone, the visa quota scales with the physical footprint of the leased facility — there is no fixed visa cap. A 500 sqm warehouse might support 8–15 visas; a 2,000 sqm factory could support 20–50 visas depending on activity type. This makes RAKEZ the preferred choice for manufacturing businesses that need a large workforce in a cost-effective location.
Year 1 Cost Comparison: Business Zone vs Industrial Zone
| Cost Item | Business Zone (AED) | Industrial Zone (AED) |
|---|---|---|
| License fee | 10,000 | 14,000 |
| Facility rent (annual) | Included (flexi) | 70,000–120,000 |
| Registration & admin | 2,000–3,500 | 3,000–5,000 |
| Visa processing (per person) | 3,500–5,000 | 3,000–4,500 |
| Fit-out / equipment | N/A | 50,000–200,000+ |
| Year 1 Total (est.) | 16,000–20,000 | 140,000–350,000 |
RAKEZ Manufacturing and Industrial Advantages
RAKEZ’s industrial zone is designed to support manufacturing businesses with infrastructure that matches UAE’s best:
- Saqr Port (RAK): A dedicated deep-water bulk port 15 minutes from the RAKEZ industrial zone, handling raw material imports and finished goods exports for manufacturing companies. Saqr Port handles bulk aggregates, minerals, steel, and general cargo. RAKEZ companies benefit from streamlined customs procedures between the free zone and the port.
- Khorfakkan & Port Khalid access: RAKEZ industrial companies also have good road access to Sharjah’s Khorfakkan port (east coast, Indian Ocean-facing), which reduces shipping times to South Asia and East Africa by 2–3 days compared to Jebel Ali.
- Etisalat / du fibre connectivity: The RAKEZ industrial zone is fully covered by UAE’s major telecoms providers, with dedicated fibre internet up to 1 Gbps available for factories and tech companies.
- Power and utilities: RAKEZ facilitates utility connections (electricity, water, gas) directly with RAK’s government utilities authority. Power costs in RAK are among the lowest in the UAE, benefiting energy-intensive manufacturers.
- Customs bonded zone: RAKEZ operates a customs bonded warehouse facility where goods can be stored duty-free until cleared for consumption or re-export.
RAKEZ Activities: 6,000+ Approved Across Sectors
RAKEZ has one of the broadest activity lists of any UAE free zone, with over 6,000 approved activities spanning virtually every sector of the economy. Major activity categories include:
- Manufacturing: Plastics, metals, chemicals, building materials, food processing, pharmaceuticals, electronics assembly, packaging
- Logistics: Freight forwarding, customs clearance, supply chain management, last-mile delivery
- Trading: General trading, commodity trading, auto parts, electronics, textiles
- Professional services: Management consulting, IT services, HR consultancy, engineering services
- Technology: Software development, SaaS, cybersecurity, telecom services
- Education: Schools, universities, online learning platforms (subject to KHDA or ACTVET approval for regulated academic institutions)
RAKEZ vs JAFZA vs IFZA: Cost Comparison
| Feature | RAKEZ (RAK) | JAFZA (Jebel Ali) | IFZA (Dubai) |
|---|---|---|---|
| Business license (flexi) | AED 8,000–12,000 | AED 15,000–25,000 | AED 12,900–22,900 |
| Warehouse 250 sqm (annual) | AED 60,000–90,000 | AED 100,000–160,000 | Not available |
| Port access | Saqr Port RAK | Jebel Ali Port (world #1) | No dedicated port |
| Distance from Dubai | 50 min (highway) | 40 min (south Dubai) | In Dubai |
| Unlimited visa quota | Yes (industrial zone) | Yes (leased space) | Max 6 (standard) |
| Industrial cost vs JAFZA | 40–60% cheaper | Base | N/A |
Al Hamra Free Zone and GCGRA: RAK’s Other Business Destinations
RAKEZ is the primary free zone in Ras Al Khaimah but not the only one. Two other RAK-based jurisdictions are worth noting:
- Al Hamra Free Zone (AHFZ): Located within the Al Hamra Village resort and retail development, AHFZ caters primarily to businesses in hospitality, retail, and leisure. It is a smaller free zone with a more limited activity list than RAKEZ, but it provides a distinctive waterfront address and is close to the InterContinental and Waldorf Astoria hotels in RAK.
- GCGRA (General Commercial Gaming Regulatory Authority): Established to oversee the new Wynn Al Marjan Island casino resort opening in 2027, GCGRA issues gaming licenses separate from RAKEZ. Businesses wishing to operate gaming or casino-adjacent services must obtain GCGRA authorization — a standard RAKEZ license is not sufficient for gaming activities. The GCGRA regulatory framework was still being finalised as of August 2026.
Frequently Asked Questions: RAKEZ Free Zone 2026
Is RAKEZ only for manufacturing companies?
No. RAKEZ serves a full spectrum of businesses from sole-trader consultants (business zone flexi desk) to large manufacturers (industrial zone factories). Approximately 60% of RAKEZ’s 14,000+ member companies are in the business zone — trading, consulting, technology, and professional services companies that chose RAKEZ primarily for its low license cost compared to Dubai free zones. Manufacturing and industrial companies represent the remaining 40% and are concentrated in the industrial zone. RAKEZ’s 6,000+ activity list covers virtually all sectors.
Can a RAKEZ company trade with Dubai mainland businesses?
A RAKEZ free zone company can sell goods and services to Dubai mainland companies, but the transaction is treated as an import for UAE customs purposes — duties may apply on physical goods. For service businesses (consulting, IT, professional services), selling to Dubai mainland clients from a RAKEZ free zone entity is commercially straightforward with no customs implications. RAKEZ has a DED dual license arrangement that allows RAKEZ companies to also hold a Dubai DED license for direct mainland commercial activity — similar to the IFZA DED dual license scheme.
What are the visa processing times at RAKEZ?
RAKEZ processes UAE residence visas for its business zone and industrial zone members. For investor visas (company shareholder/director), the typical timeline is 2–4 weeks from license issuance, assuming the applicant is present in the UAE and all medical and biometrics appointments are available promptly. For employment visas sponsored by the company, add 1–2 weeks for labor card processing through the UAE Ministry of Human Resources (MOHRE). RAKEZ operates its own in-house visa services centre in RAK, which provides faster processing than external PRO agents for most standard applications.
Does RAKEZ have a logistics and customs bonded zone?
Yes. RAKEZ operates a dedicated Customs Bonded Zone where goods can be stored, consolidated, and re-exported without paying UAE import duties. This is particularly valuable for trading companies that use RAK as a transshipment point to markets in South Asia, East Africa, and CIS countries. Goods entering the bonded zone from outside the UAE clear customs at Saqr Port and are stored duty-free until re-export or domestic consumption entry. RAKEZ also facilitates Authorised Economic Operator (AEO) status applications for member companies that meet UAE Customs AEO criteria, which provides faster clearance and reduced inspections at UAE ports.
What is the Wynn Al Marjan Island casino and how does it affect RAK businesses?
Wynn Resorts is developing a USD 3.9 billion integrated resort on Al Marjan Island in Ras Al Khaimah, expected to open in phases from 2027. The resort will include a casino — the first in the UAE — regulated by the GCGRA. For RAKEZ business zone and industrial zone companies, the Wynn development has driven significant real estate price increases across RAK, particularly for commercial property and residential accommodation. It is also expected to dramatically increase tourist arrivals to RAK, creating opportunities for hospitality, food and beverage, retail, and transport businesses. RAKEZ license holders in these sectors may benefit from the increased footfall, but any business directly involved in casino operations or gaming services must obtain a separate GCGRA license — a standard RAKEZ license does not cover gaming.