Dubai South vs IFZA: A Data-Led Comparison
Setting Dubai South against IFZA is really a question of what you're optimising for. Both grant full foreign ownership, VAT registration, and residence visas; the differences are cost, banking, and fit. Dubai South's Year 1 minimum is AED 14,500 against IFZA's AED 17,150 — a gap of AED 2,650 (18%) before you add visas or office space. Dubai South (Dubai South Free Zone (Dubai World Central)) sits in Dubai as a Tier 1, budget zone. Year 1 starts around AED 14,500, banking is rated moderate (~21 days to open an account), and the visa cap is 100. It's built for logistics, e-commerce, and aviation companies needing airport proximity and scalability. IFZA (International Free Zone Authority) sits in Dubai as a Tier 2, budget zone. Year 1 starts around AED 17,150, banking is rated moderate (~21 days to open an account), and the visa cap is 50. It's built for SMEs and e-commerce businesses seeking a cost-effective Dubai presence with a fast, online setup.
Dubai South
Dubai · Tier 1
Logistics, e-commerce, aviation and trading companies that benefit from airport/port proximity, bonded warehousing and designated-zone VAT treatment; also freelancers/remote consultants wanting a low-cost government-zone license via the Business Hub.
IFZA
Dubai · Tier 2
Cost-conscious SMEs, consultants and e-commerce founders who want a genuine Dubai (DSO) address, 1-6 residence visas and fast remote setup without premium-zone pricing.
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 Dubai South if…
- ✓Year 1 cost matters — Dubai South opens at AED 14,500 vs IFZA's AED 17,150, a AED 2,650 head start that compounds every renewal
- ✓You'll hire and scale headcount — Dubai South allows up to 100 visas vs IFZA's 50
- ✓You want a Tier 1 free zone address — the kind banks, investors, and enterprise buyers recognise on sight
- ✓Renewals stay lean — Dubai South renews at AED 9,500 a year vs IFZA's AED 11,900, a saving that recurs for the life of the company
- ✓Dubai South is purpose-built for logistics, e-commerce, and aviation companies needing airport proximity and scalability
Choose IFZA if…
- ✓IFZA is purpose-built for SMEs and e-commerce businesses seeking a cost-effective Dubai presence with a fast, online setup
- ✓Like Dubai South, IFZA gives you 100% ownership and 0% corporate tax on qualifying income — if the differences above don't decide it, IFZA is a safe, low-risk pick
Our Verdict
Default to Dubai South — at AED 14,500 in Year 1 it's the lower-risk starting point for most founders. IFZA makes sense mainly when its ecosystem or address is a direct fit for your buyers; 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 Dubai South or IFZA cheaper to set up?
Dubai South is cheaper. Its Year 1 minimum is AED 14,500 against IFZA's AED 17,150 — a gap of AED 2,650 before visas or office. Both figures are entry minimums; adding visas and dedicated space narrows or widens the gap depending on package.
Is banking easier at Dubai South or IFZA?
Both are rated moderate for corporate banking, so neither has a structural edge here. Your activity, ownership structure, and source-of-funds documentation will matter more than the zone itself.
How many visas can I get with Dubai South or IFZA?
Dubai South allows up to 100 visas and IFZA up to 50. 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 Dubai South and IFZA 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 Dubai South to IFZA 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.