Free Zone Comparison

RAKEZ vs DGDP: Which Free Zone Is Right for Your Business?

Choosing between Ras Al Khaimah Economic Zone (RAKEZ) and Dubai Gold & Diamond Park (DGDP) comes down to cost, setup speed, banking, and business fit. Here’s an honest comparison.

Ras Al Khaimah vs DubaiAED 10,770 vs AED 26,3105 Working Days vs 7 Working Days

The Bottom Line

RAKEZ costs AED 15,540 less (59% savings) in your first year compared to DGDP. That’s AED 10,770 vs AED 26,310 all-in with one visa.

If speed matters more than cost, RAKEZ gets you operational in 5 Working Days2 working days faster than DGDP.

AED 10,770YEAR 1RAKEZ
vs
AED 26,310YEAR 1DGDP

Ras Al Khaimah · Est. 2017

Ras Al Khaimah Economic Zone (RAKEZ)

RAKEZ is perfect for cost-conscious entrepreneurs, e-commerce sellers, and small tech teams who want maximum flexibility and lowest fees. If you operate primarily online and need a legitimate UAE entity without high costs, RAKEZ is hard to beat.

License

AED 7,500

Visa

AED 2,400

Setup

5 Working Days

Banking

Medium

The Pros of RAKEZ

Second-lowest license fee in UAE (AED 7,500)

Includes virtual address, no extra fees

Flexible for all business types — minimal activity restrictions

Up to 50 shareholders for scalable partnerships

Competitive office and warehouse packages

Strong government support with no restrictions on ownership structure

The Cons

Medium bank approval (70%) — RAK premium applies

Northern location less convenient than Dubai/Sharjah for clients

Smaller business network ecosystem versus DMCC or JAFZA

Limited immediate infrastructure (no integrated co-working)

Fewer multinational company presence versus Dubai zones


Dubai · Est. 2001

Dubai Gold & Diamond Park (DGDP)

DGDP is for jewelry traders, precious metals dealers, and gemstone businesses requiring secure vault storage and international trading. Choose DGDP if you deal in high-value items requiring certification, vaults, and strict compliance.

License

AED 15,200

Visa

AED 3,600

Setup

7 Working Days

Banking

Medium

The Pros of DGDP

Secure vault facilities for precious metals and diamonds

GIA certification and grading services on-site

Maximum 15 shareholders for family jewelry business structures

International gemstone trading network ecosystem

Advanced security infrastructure and insurance support

Specialized hallmarking and assay services

The Cons

Medium bank approval (68%) — precious metals trading heavily regulated

High costs: AED 15,200 license + AED 6,500 vault space + insurance

Highest visa costs tier (AED 3,600)

7-day approval timeline

Strict sanctions screening and KYC requirements for trading partners

Inventory valuation and insurance requirements add overhead


Full Cost Comparison

All figures in AED with 1 visa included. The lower value is highlighted in green.

RAKEZDGDPLicenseAED 7,500AED 15,200VisaAED 2,400AED 3,600OfficeFreeAED 6,500HiddenAED 870AED 1,010

Cost Item

RAKEZ

DGDP

Business License

AED 7,500

AED 15,200

Office / Desk

Included

AED 6,500

Visa (1 person)

AED 2,400

AED 3,600

Medical Exam

AED 300

AED 340

Emirates ID

AED 370

AED 370

Establishment Card

AED 200

AED 300

Total Year 1

AED 10,770

AED 26,310

Annual Renewal (Yr 2+)

AED 6,800

AED 13,680


Banking & Compliance

Getting a bank account open is often harder than getting the license itself. Here’s what to expect at each zone.

RAKEZ

RAKEZ has medium bank approval (70–75%). Processing takes 2–3 weeks for clear e-commerce or IT businesses. RAKBANK (based in RAK) and Mashreq show strong appetite for RAKEZ. Bring evidence of existing customer base, online sales, or client contracts. Banks appreciate RAKEZ's transparency and straightforward setup.

License approval takes 5 working days. RAKEZ accepts broad activity categories and rarely rejects applications for activity reasons. Virtual address and licensing are streamlined with minimal documentation. If adding warehouse space, expect brief FSA clearance for storage only (not manufacturing).

DGDP

DGDP has medium approval (68%) — banks require detailed inventory procedures and insurance. Processing takes 3–4 weeks. Bring gemological certifications, supplier credentials, and insurance documentation. Islamic banks and wealth management lenders are more receptive.

License approval takes 7 working days. All diamond and precious metal trading must comply with Kimberley Process and sanctions screening — automatic. Inventory documentation and insurance proof required at setup and annually. Vault rental agreements must be with DGDP-approved facilities.


Which One Should You Pick?

Choose RAKEZ If…

  • Your business matches: E-commerce, General Trading, IT Consultancy, Management Consulting
  • Budget is your primary concern (AED 15,540 cheaper)
  • You need to get operational as quickly as possible (5 Working Days)
  • You work remotely and don’t need a physical office

Choose DGDP If…

  • Your business matches: Gem Certification, Jewelry Trading, Luxury Goods, Precious Metals

Our Analysis

If speed is your priority, Ras Al Khaimah Economic Zone (RAKEZ) gets you operational in 5 days versus Dubai Gold & Diamond Park (DGDP)'s 7-day timeline. But that faster setup comes with cost implications—Ras Al Khaimah Economic Zone (RAKEZ) saves you AED 15,540 (59% less) in your first year. Both carry medium banking approval ratings, so account opening difficulty is comparable. Ras Al Khaimah Economic Zone (RAKEZ) shines for rakez is perfect for cost-conscious entrepreneurs, e-commerce sellers, and small tech teams who want maximum flexibility and lowest fees. if you operate primarily online and need a legitimate uae entity without high costs, rakez is hard to beat., while Dubai Gold & Diamond Park (DGDP) targets dgdp is for jewelry traders, precious metals dealers, and gemstone businesses requiring secure vault storage and international trading. choose dgdp if you deal in high-value items requiring certification, vaults, and strict compliance.. Choose Ras Al Khaimah Economic Zone (RAKEZ) if budget drives your decision and your business model fits rakez is perfect for cost-conscious entrepreneurs, e-commerce sellers, and small tech teams who want maximum flexibility and lowest fees. if you operate primarily online and need a legitimate uae entity without high costs, rakez is hard to beat.. Neither zone dominates across all dimensions—your choice depends on whether you prioritize cost efficiency or banking relationships.


Frequently Asked Questions