Cost to Set Up in JAFZA: License, Warehouse, and Visa Fees Explained

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Ever stared at a JAFZA setup cost estimate and wondered if you’re missing crucial details? You’re certainly not the first entrepreneur to feel that way. The Jebel Ali Free Zone Authority (JAFZA) stands as one of the Middle East’s most established business hubs, but navigating its fee structure can feel like decoding an intricate puzzle—especially when your business capital is on the line.

Here’s the straight talk: Setting up in JAFZA isn’t just about finding the cheapest option—it’s about understanding exactly what you’re paying for and strategically allocating your resources to build a sustainable operational foundation in Dubai.

Table of Contents

• Understanding JAFZA’s Business Ecosystem
• License Costs: Breaking Down Your Primary Investment
• Warehouse and Office Space: What to Expect
• Visa Fees and Employee Processing Costs
• Additional Costs You Shouldn’t Overlook
• JAFZA vs. Other Free Zones: Value Analysis
• Frequently Asked Questions
• Your JAFZA Setup Roadmap

Understanding JAFZA’s Business Ecosystem

Well, here’s the context you need: JAFZA operates as a designated free zone within Dubai, meaning businesses enjoy 100% foreign ownership, full profit repatriation, and zero corporate taxes for 50 years (renewable). Established in 1985, it’s grown into a massive commercial district spanning over 57 square kilometers with more than 8,500 registered companies.

Why Entrepreneurs Choose JAFZA

Before diving into costs, let’s understand what makes this investment worthwhile. JAFZA offers strategic proximity to Jebel Ali Port—the largest port between Singapore and Rotterdam—handling approximately 15 million TEUs annually. This geographical advantage translates into reduced logistics costs for trading companies and manufacturers.

Key advantages include:

• Exemption from import and export duties
• No currency restrictions
• Modern infrastructure with Grade A facilities
• Access to 140+ countries through UAE trade agreements
• Streamlined government services and approvals

Quick Scenario: Imagine you’re launching an electronics trading company. In mainland Dubai, you’d face 5% customs duties on imports, require a local sponsor (51% ownership), and deal with multiple government departments. In JAFZA? You import duty-free, maintain complete ownership, and handle most procedures through a single authority.

License Costs: Breaking Down Your Primary Investment

The license fee represents your gateway into JAFZA operations. As of 2025, the basic structure involves several components that collectively determine your initial investment.

Business License Categories and Pricing

JAFZA offers three primary license types, each serving distinct business models:

1. Trading License
This covers import, export, distribution, and general trading activities. The annual registration fee starts at AED 15,000 for a single activity license. Each additional trading activity adds approximately AED 5,000 to your annual costs.

2. Service License
Designed for consultancies, agencies, and service providers, the service license begins at AED 18,000 annually. Professional services like legal consulting or marketing agencies typically fall under this category.

3. Industrial License
Manufacturing operations require industrial licenses, priced from AED 20,000 annually depending on the nature of production activities. This includes light manufacturing, assembly operations, and processing facilities.

Registration and Setup Charges

Beyond the license itself, you’ll encounter one-time registration fees:

• Company Registration Fee: AED 10,000 (one-time)
• External Authorization Fee: AED 2,000 (one-time, for specific activities)
• Business Plan Review: Typically included, but complex industrial projects may incur additional consultation fees

A real-world example: Sarah, an Italian fashion consultant, established her JAFZA service company in 2023. Her initial license package included one service activity (fashion consulting), company registration, and basic incorporation documents, totaling AED 28,000 for the first year. Her annual renewal would drop to approximately AED 18,000 thereafter.

Warehouse and Office Space: What to Expect

Your physical space represents a significant portion of your JAFZA investment. The authority offers diverse options from compact offices to sprawling warehouse facilities.

Office Space Pricing Structure

JAFZA provides flexible office solutions across different facility grades:

Flexi Desks:
Starting at AED 8,500 annually, flexi desks suit solo entrepreneurs or minimal operations. These shared workspace arrangements include basic furnishing and internet connectivity but offer limited privacy and no dedicated meeting space.

Private Offices:
Individual offices range from AED 25,000 to AED 60,000 annually depending on size (typically 15-50 square meters) and building grade. Premium towers with enhanced amenities command higher rates, while standard facilities offer functional spaces at competitive prices.

Office Suites:
Larger operations requiring 100+ square meters can expect annual costs between AED 80,000 to AED 180,000. These typically accommodate teams of 8-15 people with dedicated meeting rooms and reception areas.

Warehouse and Industrial Space

For companies requiring storage or manufacturing capabilities, warehouse costs vary dramatically based on specifications:

Real-world perspective: Ahmed’s automotive parts trading company initially leased a 750 sqm warehouse at AED 165,000 annually. After 18 months of growth, he negotiated an expansion to 1,200 sqm at a preferential rate of AED 240,000—demonstrating how established tenants can leverage relationships for better terms.

Understanding What’s Included

Most JAFZA leases operate on a shell-and-core basis, meaning you receive bare space requiring your own fit-out investment. Budget an additional AED 150-400 per square meter for basic office improvements (partitions, flooring, lighting) or AED 80-200 per square meter for warehouse racking and basic infrastructure.

Visa Fees and Employee Processing Costs

Your license automatically entitles you to employment visa allocations, but processing these visas involves distinct costs that many entrepreneurs underestimate.

Employment Visa Quota and Costs

JAFZA determines your visa quota based on your leased space. Generally:

• Flexi desk: 1-2 visas
• Small office (15-25 sqm): 3-5 visas
• Medium office (50+ sqm): 10-15 visas
• Warehouse spaces: Typically 1 visa per 50-100 sqm

Per-Visa Processing Costs (2025):

• Establishment Card: AED 2,000 (one-time for company)
• Employment Visa Stamping: AED 3,000 per person
• Emirates ID: AED 300 per person
• Medical Fitness Test: AED 320 per person
• Entry Permit Processing: AED 500 per person
• Status Change Fee (if applicable): AED 650 per person

Total first visa cost: Approximately AED 7,070 for your company’s initial employee (including establishment card) and AED 5,070 for each additional employee.

Annual Visa Renewal Expenses

Employment visas require annual renewal, involving:

• Visa Renewal: AED 2,850 per person
• Emirates ID Renewal: AED 300 per person
• Medical Test: AED 320 per person

Annual renewal total: AED 3,470 per employee

Visa Cost Comparison Across Business Sizes

Let’s visualize how visa expenses scale with team size:

Additional Costs You Shouldn’t Overlook

Beyond the major expense categories, several supplementary costs can catch entrepreneurs off-guard if not properly anticipated.

Mandatory Service Charges

Municipality Fees: JAFZA charges 5% of annual rent as a municipal fee, automatically included in your lease calculations but worth understanding as a separate line item.

Utilities Setup:

• Electricity connection: AED 2,000 – 4,000 (deposit)
• Water and sewage: Included in most lease agreements
• Internet installation: AED 1,000 – 2,500
• Telephone lines: AED 300 – 500 per line

Corporate Banking and Financial Setup

Opening a corporate bank account in the UAE involves:

• Minimum deposit requirements: AED 25,000 – 100,000 (varies by bank)
• Bank processing fees: AED 2,500 – 5,000
• Annual account maintenance: AED 3,000 – 8,000

Insider tip: Some banks offer preferential packages for JAFZA companies. Emirates NBD and Mashreq Bank have dedicated free zone desks that streamline the process and sometimes waive initial setup fees for companies meeting minimum balance requirements.

Professional Service Providers

Most businesses engage PRO (Public Relations Officer) services and business consultants:

• Annual PRO services: AED 12,000 – 24,000 (handles all government interactions)
• Accounting and bookkeeping: AED 18,000 – 36,000 annually
• Legal consultation: AED 15,000 – 40,000 (setup phase)

JAFZA vs. Other Free Zones: Value Analysis

Understanding JAFZA’s positioning within Dubai’s free zone ecosystem helps you determine if the investment aligns with your business model.

Competitive Landscape Assessment

Dubai hosts over 30 free zones, each targeting specific industries. JAFZA’s closest competitors include Dubai Airport Free Zone (DAFZA), Dubai Multi Commodities Centre (DMCC), and Dubai South.

Cost Positioning:

• DMCC: Generally 15-25% more expensive than JAFZA, positioned for commodity traders and luxury goods
• DAFZA: Similar pricing to JAFZA, ideal for aviation-related businesses
• Dubai South: 20-30% cheaper than JAFZA, focused on logistics and aviation industries
• IFZA: Budget-friendly option starting around AED 15,000 all-inclusive for minimal setups

When JAFZA Makes Strategic Sense

Ready to evaluate if JAFZA justifies the investment? Consider these scenarios where it delivers exceptional value:

1. Import-Export Operations: Companies handling significant container volumes benefit immensely from port proximity. A textiles importer calculated that JAFZA’s location saved them approximately AED 35,000 annually in logistics costs compared to operating from Dubai South—easily offsetting the slightly higher rent.

2. Manufacturing Operations: JAFZA’s industrial infrastructure and utilities reliability make it superior for production facilities. Power consistency and proximity to raw material suppliers create operational efficiencies worth the premium.

3. Established Businesses Scaling Up: JAFZA’s extensive facilities support growth without requiring relocation. Companies can start with modest space and expand within the same ecosystem as operations mature.

Frequently Asked Questions

Can I start with a minimal setup and upgrade later?

Absolutely, and it’s actually the recommended strategy for most startups. Begin with a flexi desk or small office (total first-year cost around AED 35,000-45,000 including license and one visa) to test your market. JAFZA allows seamless upgrades as your business grows. The renewal process is straightforward—simply request additional space or license activities during your annual renewal period. Many successful JAFZA companies started with single-desk operations and now occupy multi-thousand square meter facilities. The flexibility to scale is one of JAFZA’s strongest competitive advantages.

Are there any ongoing annual costs beyond the obvious ones?

Yes, several recurring expenses deserve attention in your financial planning. Beyond license renewals and rent, budget for: annual auditing requirements (AED 8,000-15,000 depending on company size), business continuity updates if your operations change, potential license activity additions as you diversify, and employee-related costs like medical insurance (mandatory, approximately AED 700-1,500 per employee annually). Additionally, if you maintain inventory in JAFZA, consider insurance costs (typically 0.1-0.3% of inventory value annually). Smart financial planning includes a 15-20% contingency above your calculated baseline to accommodate these supplementary expenses.

How does JAFZA handle visa quotas if my team expands faster than expected?

JAFZA offers pragmatic solutions for growing companies. You have three primary options: upgrade to larger office space (which automatically increases your visa quota), lease additional small spaces specifically for visa allocation purposes (some entrepreneurs lease minimal flexi desks purely for extra visas), or apply for exceptional quota increases by demonstrating legitimate business need through revenue documentation. The authority understands business growth patterns and generally accommodates reasonable expansion requests. However, plan ahead—quota increase approvals can take 2-4 weeks, so anticipate hiring needs rather than reacting to them. Companies with consistent growth trajectories often negotiate multi-year lease agreements that include graduated visa quotas, providing predictability for talent acquisition.

Your JAFZA Setup Roadmap

Now that you understand the complete cost landscape, here’s your practical action plan for moving forward strategically:

Immediate Next Steps:

1. Calculate Your True Minimum Viable Setup (Week 1): Don’t just estimate—create a detailed first-year budget including license, space, two visa allocations, PRO services, and a 20% contingency. This precise number becomes your decision-making baseline.
2. Schedule a JAFZA Consultation (Week 1-2): Contact JAFZA’s business advisory team directly. They provide free consultations that clarify license requirements for your specific business activities and can suggest cost-optimization strategies based on current promotions.
3. Compare Three Actual Quotes (Week 2-3): Get written proposals from JAFZA plus two alternative free zones. Don’t just compare headline costs—evaluate total five-year expenses including scaling scenarios. Sometimes a higher initial investment delivers better long-term value.
4. Secure Pre-Approval for Banking (Week 3-4): Before finalizing your JAFZA setup, initiate preliminary banking discussions. Some entrepreneurs complete JAFZA registration only to face unexpected banking challenges that delay operations by months.
5. Build Your Professional Team (Week 4-6): Identify your PRO service provider, accountant, and legal advisor before registration. Having these relationships established accelerates your setup and prevents costly mistakes during the critical incorporation phase.

Looking Forward: The UAE’s 2025-2030 economic vision emphasizes free zone growth, suggesting continued infrastructure investment and potential incentive programs for specific industries. Early movers in emerging sectors like green technology, artificial intelligence, and advanced manufacturing may access preferential terms as JAFZA diversifies its tenant portfolio.

Remember, the entrepreneurs who succeed in JAFZA aren’t necessarily those with the largest budgets—they’re the ones who understand exactly what they’re paying for and align those investments with clear business objectives. Your JAFZA journey isn’t just about minimizing costs; it’s about maximizing the return on every dirham invested in your global business foundation.

What specific business challenge would JAFZA’s infrastructure solve for your venture? As you consider this investment, focus less on whether you can afford JAFZA and more on whether your business model can afford not to leverage its strategic advantages. The companies thriving there today asked themselves that question—and found compelling answers that justified every dirham spent.

Article reviewed by Daniel Costa, Agribusiness Analyst | Studying UAE-Brazil Trade Flows, on November 1, 2025