ADGM vs JAFZA: Common Law vs Cost
ADGM and JAFZA are both UAE free zones that give you 100% foreign ownership, the right to invoice global clients, and UAE residence-visa sponsorship. What separates them is narrower than most founders assume — and it starts with cost. JAFZA's Year 1 minimum is AED 30,000 against ADGM's AED 36,730 — a gap of AED 6,730 (22%) before you add visas or office space. They also sit in different emirates (ADGM in Abu Dhabi, JAFZA in Dubai), which shapes where your licence, address, and client base live. Banking is where they diverge most: ADGM is rated easy to bank, JAFZA moderate. ADGM (Abu Dhabi Global Market) sits in Abu Dhabi as a Tier 1, premium zone. It runs on English common law rather than the UAE civil-law framework most free zones use. Year 1 starts around AED 36,730, banking is rated easy (~10 days to open an account), and the visa cap is 100. It's built for financial services, fund management, and FinTech companies seeking a common law jurisdiction in Abu Dhabi. JAFZA (Jebel Ali Free Zone (JAFZA North & South)) sits in Dubai as a Tier 1, premium zone. Year 1 starts around AED 30,000, banking is rated moderate (~14 days to open an account), and the visa cap is 200. It's built for manufacturing, logistics, and large-scale trading companies requiring port access and extensive warehousing.
ADGM
Abu Dhabi · Tier 1
Asset managers, funds, banks, fintech and digital-asset firms, family offices, professional-services firms and holding structures that value common-law certainty, institutional credibility and access to Abu Dhabi's sovereign-wealth capital pool.
JAFZA
Dubai · Tier 1
Manufacturers, logistics operators, re-exporters and large-scale trading companies that need port-adjacent warehousing, industrial land or factory space with bonded customs status.
Visual comparison
Six-dimension scoring
Scores are 0–100 normalized across all UAE & GCC zones. Higher is better on every axis. Cost is scored so cheaper = higher. See methodology.
Choose ADGM if…
- ✓Fast, low-friction banking is a priority — ADGM is rated easy where JAFZA is moderate
- ✓You need an English common-law structure (funds, fintech, holding companies, VC-ready cap tables) — ADGM offers it; JAFZA is civil-law
- ✓Your operations, clients, or team are anchored in Abu Dhabi rather than Dubai
- ✓Renewals stay lean — ADGM renews at AED 18,365 a year vs JAFZA's AED 20,000, a saving that recurs for the life of the company
- ✓ADGM is purpose-built for financial services, fund management, and FinTech companies seeking a common law jurisdiction in Abu Dhabi
Choose JAFZA if…
- ✓Year 1 cost matters — JAFZA opens at AED 30,000 vs ADGM's AED 36,730, a AED 6,730 head start that compounds every renewal
- ✓You'll hire and scale headcount — JAFZA allows up to 200 visas vs ADGM's 100
- ✓You're outside financial and legal services — you don't need ADGM's common-law regulatory framework, and JAFZA skips that compliance overhead
- ✓Your operations, clients, or team are anchored in Dubai rather than Abu Dhabi
- ✓You need warehousing or light-industrial space on site — JAFZA offers it; ADGM is office-only
Our Verdict
Default to JAFZA — at AED 30,000 in Year 1 it's the lower-risk starting point for most founders. ADGM earns its AED 6,730 premium when you specifically need easier banking or its common-law jurisdiction; if that edge isn't decisive for your business, the saving is better spent on growth. Use the scored comparison below to pressure-test the call against your own activity, visa count, and banking needs.
Frequently asked questions
Is ADGM or JAFZA cheaper to set up?
JAFZA is cheaper. Its Year 1 minimum is AED 30,000 against ADGM's AED 36,730 — a gap of AED 6,730 before visas or office. Both figures are entry minimums; adding visas and dedicated space narrows or widens the gap depending on package.
Which is better for opening a corporate bank account — ADGM or JAFZA?
ADGM has the smoother path. It's rated easy for corporate banking (~10 days on average), while JAFZA is rated moderate (~14 days). Banking difficulty depends heavily on your activity and source of funds, but the zone's baseline rating is a real signal.
How many visas can I get with ADGM or JAFZA?
ADGM allows up to 100 visas and JAFZA up to 200. Most zones tie the practical number to your office type — a flexi-desk supports only a handful, while a dedicated office unlocks the higher cap.
Do ADGM and JAFZA both qualify for 0% corporate tax?
Yes — both are Qualifying Free Zone Persons (QFZP), so genuinely qualifying income is taxed at 0% under the UAE's 9% corporate-tax regime, provided you keep adequate substance and meet the qualifying-income tests. Non-qualifying income (for example mainland-sourced revenue) is taxed at 9% in either zone, so tax treatment isn't a differentiator between them.
Can I move from ADGM to JAFZA later?
Not as a transfer — UAE free zone licences don't migrate between zones. You'd close the first entity and incorporate fresh in the second, which means dissolution costs, re-onboarding your bank, and moving any visas. It's cleaner to pick the right zone up front, or to run two entities deliberately if you genuinely need both.