DAFZA: The fastest growing Free Zone in the Middle East, Ranked 1st globally by fDi magazine
Est. 1996 | 1,600+ companies | License from AED 15,000/year
Dubai Airport Freezone (DAFZA) holds the No. 1 spot worldwide in the Foreign Direct Investment Magazine's Global Free Zones of the Year rankings. That recognition comes down to three things: where it sits on the map, the level of tech infrastructure built into the zone, and how closely its packages are matched to what international investors actually need.
Few free zones in the UAE have scaled as quickly as DAFZA, and its setup packages are built with global-facing businesses in mind. As with the country's other leading free zones, choosing DAFZA over a mainland licence comes with a distinct set of commercial upsides.
Sitting directly beside Dubai International Airport gives DAFZA companies quicker customs turnaround, faster document processing, and round-the-clock logistics support. Since opening in 1996, the zone has grown to house more than 1,600 companies and upwards of 15,000 working professionals spanning logistics, IT, aviation, pharmaceuticals, and luxury goods.
Here's what to budget for annual license fees plus the one-time registration and setup costs. Your exact figure can shift depending on your chosen activity and facility, so get in touch with our team for a quote tailored to your setup.
| License / Fee Type | Cost (AED) | Cost (USD approx.) | Frequency |
|---|---|---|---|
| Base License Fee (1 Industry Category + 3 Sub-Activities) | 15,000 | 4,110 | Annual |
| General Trading License | 50,000 | 13,699 | Annual |
| FZCO Registration Fee | 7,000 | 1,918 | One-time |
| Issuance of MOA/AOA | 500 | 137 | One-time |
| Establishment Card | 2,020 | 553 | One-time |
Note: Area is calculated on the actual office size selected, VAT is added where applicable, and Knowledge & Innovation fees apply on top of the above.
To make budgeting easier, here's how the total first-year cost works out for two common DAFZA office packages, based on official DAFZA rate cards.
| Particulars | Smart Office (Desk) | Business Boutique Office |
|---|---|---|
| Area (sq.m, approx.) | 6.50 | 15 |
| Annual Rent per sq.m | AED 2,500 | AED 2,500 |
| Annual Rent Value | AED 16,250 | AED 37,500 |
| Base License Fee | AED 15,000 | AED 15,000 |
| FZCO Registration Fee (one-time) | AED 7,000 | AED 7,000 |
| Issuance of MOA/AOA | AED 500 | AED 500 |
| Establishment Card | AED 2,020 | AED 2,020 |
| Total (Year 1) | AED 40,770 | AED 62,020 |
| Visa Eligibility (@ 8.33 sq.m/visa) | 2 | 2 |
Space options at DAFZA are split across the Business Park and Industrial Park zones, so you can pick fitted offices, shared co-working desks, executive suites, or warehouse units depending on how your business operates.
| Facility Type | Rate |
|---|---|
| Office Space (Smart Office / Boutique Office) | AED 2,500/sq.m annual rent |
| Warehouse (~340 sq.m) | AED 600/sq.m (service charge included) |
How many visas you qualify for comes down to the size of the space your company leases — DAFZA allocates visa eligibility at a flat rate of 1 visa per 8.33 sq.m of office space, with warehouse facilities eligible for higher allocations depending on area.
| Visa Type | Standard/Normal | Express |
|---|---|---|
| New Employee — Outside UAE | AED 2,973 | AED 3,973 |
| New Employee — Inside UAE (on visit visa, private sector) | AED 4,759 | AED 5,759 |
Outside-UAE visas include the Residency stamp, medical fitness certificate, and Emirates ID card. Inside-UAE visas additionally cover the entry permit and let you complete the process without leaving the country.
Employee Protection Insurance is mandatory, renewed every 2 years, and priced based on each employee's basic salary, typically ranging from AED 350 to AED 1,600 per employee, payable alongside the visa fees.
Office Insurance (annual) covers 3rd Party Liability, Fire & Peril, and Workman's Compensation. Cost depends on office size and headcount, and is quoted per company.
1. Free Zone Company (FZCO) Setup
An FZCO works well whether you're setting up as a solo investor or bringing in a corporate shareholder to run the business inside the free zone.
FZCO Features:
2. Branch Office Setup
If you already run a company locally in UAE or abroad, you can open a Branch in DAFZA instead of forming a new entity, and there's no share capital requirement to do it in DAFZA.
Branch Features:
1. Commercial Trade License
Allows import, export, distribution, and storage of designated goods.
2. Service License
Tailored for consultancy and service-driven firms to operate specified activities.
3. Industrial License
Enables light manufacturing, assembly, packaging, and industrial production.
4. General Trading License
Allows multi-product trading across diverse business verticals without restrictions.
5. Education License
Covers educational and social services, training, and educational consultancy.
DAFZA licenses a broad range of commercial, service, and industrial activities, including:
Note: certain activities require a No Objection Certificate (NOC) from external government entities before approval.
From the moment you get initial approval to the day your license is issued, most applicants are looking at roughly 10 to 20 business days.
For Initial Approval:
After Initial Approval (Licensing Stage):
| Requirement | Details |
|---|---|
| License Validity | 1 year renewal required annually |
| License Renewal Window | Must renew before expiration; late renewal penalties apply after 30 days |
| Annual Audit | Mandatory, member companies must submit audit reports yearly |
| Visa Validity | 3 years per employment visa |
Not sure DAFZA is the right fit? Here's a quick side-by-side against two other well-known Dubai free zones.
| Feature | DAFZA | JAFZA | IFZA |
|---|---|---|---|
| Best suited for | Logistics, aviation, trading, pharma | Large-scale trading & industrial | Startups, freelancers, SMEs |
| Location | Next to Dubai International Airport | Jebel Ali Port area | Dubai Silicon Oasis |
| License starting cost | AED 15,000/year | Higher, port/industrial premium | Generally lower entry cost |
| Ownership | 100% foreign ownership | 100% foreign ownership | 100% foreign ownership |
Explore full details on JAFZA or IFZA, or see all options on our UAE Free Zones comparison hub.
Q1: What is DAFZA in Dubai?
DAFZA (Dubai Airport Free Zone Authority) is one of Dubai's major business setup hubs, established in 1996 and located right next to Dubai International Airport. It hosts over 1,600 companies across logistics, aviation, pharma, IT and luxury sectors.
Q2: How much does a DAFZA license cost?
A Base License (1 industry category + 3 sub-activities) costs AED 15,000/year. A General Trading License costs AED 50,000/year. Add a one-time FZCO registration fee of AED 7,000, AED 500 for MOA/AOA issuance, and AED 2,020 for the Establishment Card.
Q3: What license options are available in Dubai Airport Free Zone?
DAFZA offers Commercial Trade, Service, Industrial, General Trading, and Education Licenses covering a wide range of business activities.
Q4: Can I get 100% ownership in DAFZA?
Yes, foreign investors get 100% business ownership along with 100% profit repatriation and full tax exemptions.
Q5: How many employee visas can I get with a DAFZA company?
DAFZA allocates visas at a flat rate of 1 visa per 8.33 sq.m of office space. A Smart Office desk (6.5 sq.m) or Boutique Office (15 sq.m) both typically qualify for 2 visas.
Q6: How long does DAFZA company formation take?
Typically 10 to 20 business days for registration and licensing, with full setup including facility handover completing within 2 to 4 weeks.
Our expert business setup team guides you through the entire DAFZA registration process, documentation, license procurement, and visa allocation in an efficient and hassle-free manner.
Contact UAE Free Zones experts today to get a customized cost breakdown for DAFZA company formation!