Understanding the Differences Between Dubai and Free Zone Visa

Are you planning to start a business in Dubai? As a foreigner, you’ll need to secure a visa first to run your business in the city and you have two options: a Dubai visa or a free zone visa.

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What Makes a Dubai Visa Different from a Free Zone Visa?

A Dubai visa and free zone visa are both beneficial for foreigners who are looking to start a business in the city. But there are differences between the two in terms of:

Eligibility for the visa
The requirements for the visa
The validity of the visa
The cost of applying for the visa
The benefits of the visa

In this article, we’ll discuss these differences further to help you understand how these visas work and which one will suit your business needs best.

A Dubai Visa Is for Businesses in the Mainland While a Free Zone Visa Is For Businesses in the Free Zone

One of the most distinct differences between a Dubai visa and free zone visa is the location of your business.

Businesses in Dubai are categorized into two: mainland companies and free zone companies.

What is a mainland company and free zone company?

A mainland company is a business entity that’s established in the mainland or the areas in Dubai outside the designated free zones and under the regulation of the Department of Economic Development (DED).

A free zone company is a business entity that’s established within one of the designated free zones in Dubai and the UAE.

If you’re establishing a business in the mainland, you’re required to apply for a Dubai investor visa.

On the other hand, you’re required to apply for a free zone visa if you’re establishing a business within one of these free zones in Dubai:

Packages	Estimated Price
Dubai Design District	Dubai Gold and Diamond Park
Dubai Healthcare City	Dubai International Academic City
Dubai Internet City	Dubai International Finance Center
Dubai International Free Zone	Dubai Logistic City
Dubai Knowledge Park	Dubai Maritime City
Dubai Media City	Dubai Multi Commodities Center (DMCC)
Dubai Production City	Dubai Science Park
Dubai Silicon Oasis	Dubai Studio City
Dubai Textile City	Dubai World Central (Dubai South)
Dubai World Trade Center	International Humanitarian City
Jebel Ali Free Zone

A Dubai Visa Has Different Eligibilities from a Free Zone Visa

There are also differences in a person’s eligibility to apply for a Dubai visa and free zone visa.

Did You Know?

Before June 1, 2021, all businesses established in the mainland required a UAE resident as a business partner or sponsor who will hold 51% of the company’s shares.

But in November 2020, H.H. Sheikh Khalifa bin Zayed Al Nahyan signed a decree amending the UAE Federal Law No.2 of 2015 on Commercial Companies allowing foreigners 100% ownership of the companies that they establish in Dubai’s mainland.

Eligibility for a Dubai Visa

A Dubai investor visa is granted to foreigners who want to start a business or invest in an existing business in the city’s mainland.

It can also be obtained under these categories:

Visa by investment in a company

This is granted to foreigners who want to start or invest in a business in Dubai’s mainland.

The investor should own at least $19,000 in an existing company or a capital investment of the same amount for a startup.

Visa by investment in residential property

A Dubai investor visa can be granted to an individual who invests in residential property worth at least $273,000 as long as 50% of the property’s total value is under mortgage.

Long-term residence visa

New rules now grant investors a long-term residence visa depending on how much they’ve invested in Dubai and the other parts of the UAE.

The investor can also apply for his spouse, children, an advisor and manager for the same visa.

Retirement visa

This type of investor visa is valid for five years and granted to entrepreneurs or investors above the age of 55 who choose to live in Dubai after retirement.

The individual should have an accumulated savings of at least $272,000, property investment of at least $555,000 or a monthly income of at least $5,000.

Eligibility for a Free Zone Visa

As a foreigner, you’ll be qualified to apply for a free zone visa in Dubai if you meet one of these requirements:

You’re looking to establish a company in one of the free zone areas in Dubai or invest in an existing company in the same area
You’re working for an existing free zone company in Dubai
You hold a freelance visa in the UAE and you want to change it to a free zone visa

A Dubai Visa Has a Different Validity than a Free Zone Visa

Another key difference between a Dubai visa and free zone visa is their validity.

If you’re eligible for a Dubai investor visa, you can also qualify for different validities:

3-year Dubai investor visa	5-year Dubai investor visa	10-year Dubai investor visa
Entrepreneurs starting a business with a minimum capital of $204,000 or an investment share in an existing company of the same amount. Property investors can also qualify providing that 50% of the total value is paid in the bank	Entrepreneurs with a minimum capital investment of $137,000 or property investors with a gross value of not less than $1.4 million	Entrepreneurs starting a business with a capital of at least $2.8 million, shares with an existing company of the same value or property investment with a gross value of at least $2.8 million
For property investors, the property can be jointly owned between spouses as long as there’s a marriage certificate and it has to be residential, not commercial	The investor needs to keep his/her investment for the next 3 years and the money shouldn’t be loaned	The investor needs to keep his/her investment for at least 2 years and the money shouldn’t be loaned The government also grants an investor visa for individuals with special talents in the fields of healthcare, science and technology

3-year Dubai investor visa

5-year Dubai investor visa

10-year Dubai investor visa

Entrepreneurs starting a business with a minimum capital of $204,000 or an investment share in an existing company of the same amount. Property investors can also qualify providing that 50% of the total value is paid in the bank

Entrepreneurs with a minimum capital investment of $137,000 or property investors with a gross value of not less than $1.4 million

Entrepreneurs starting a business with a capital of at least $2.8 million, shares with an existing company of the same value or property investment with a gross value of at least $2.8 million

For property investors, the property can be jointly owned between spouses as long as there’s a marriage certificate and it has to be residential, not commercial

The investor needs to keep his/her investment for the next 3 years and the money shouldn’t be loaned

The investor needs to keep his/her investment for at least 2 years and the money shouldn’t be loaned

The government also grants an investor visa for individuals with special talents in the fields of healthcare, science and technology

On the other hand, a free zone visa is valid only for 3 years and you need to renew it after it expires.

This is regardless of whether you’re an entrepreneur establishing a business in Dubai, you’re employed with a company in the free zone or you’re a qualified dependent.

A Dubai Visa Application Costs Differently From a Free Zone Visa

Applying for a Dubai investor visa costs differently from a free zone visa mainly because requirements may also vary.

With a Dubai investor visa, you’ll need to pay for mandatory fees such as:

3-year Dubai investor visa	5-year Dubai investor visa
$320	Entry permit for applicants in the UAE
$143	Entry permit for applicants outside the UAE
$184	Change of status (This is not required for applicants from outside the UAE)
$237	Visa stamping
$110	Emirates ID
$88	Medical tests

These fees don’t include charges for establishing your business such as those mandated by the Dubai Economic Department.

On the other hand, a free zone visa would cost you approximately $1,400, but the cost will vary depending on what free zone you’re applying for.

Here are the free zone visa application costs in some of the free zones in Dubai:

Free Zone	Visa fee	Guarantee deposit	Medical and Emirates ID
Jebel Ali Free Zone	$1,095 (applications outside the UAE) $1,306 (applications inside the UAE)	One way air ticket 1.5% of the basic salary	$326
Dubai South Free Zone	$743 (applications outside the UAE) $1,047 (applicatons inside the country)		$326
Dubai Multi Commodities Center (DMCC)	$1,234	$816	$326
Dubai World Trade Center	$408 (applications outside the UAE) $740 (applicatons inside the UAE)		$289

A Dubai Visa Has a Different Application Process from a Free Zone Visa

Another key difference between a Dubai visa and free zone visa is the application process including the requirements for each visa.

Requirements and Application for a Dubai Visa

If you’re qualified to apply for a Dubai investor visa as an entrepreneur establishing a business in the mainland, you need to fulfill these requirements:

Bank account IBAN Number of sponsor

Establishment Card

One photograph with white background

Current UAE visa and Emirates ID (if applicable)

Memorandum Papers (MOA) as proof of the share of ownership (for partnerships)

Passport

Partner’s passport copy (if applicable)

Partner’s current UAE visa (if applicable)

Partner’s original Emirates ID

Trade license copy

Valid health insurance

Requirements and Application for a Free Zone Visa

Requirements may vary depending on the free zone where you’re applying your free zone visa for.

But you need to follow these steps to acquire a free zone visa in Dubai:

Register with the E-channel portal of the UAE government. This portal will allow you to process most of your application online, so you don’t need to visit an immigration office.
Apply for an entry permit, which is basically a temporary visa that allows you to stay in Dubai for up to 60 days to process your free zone visa application and establish your business in the city.
To activate your entry permit, you can have your passport stamped at the immigration in Dubai, present your visa at the immigration office in the airport upon entry to Dubai or leave the country by land and get your passport stamped upon re-entry.
Secure a medical and fitness test with a government health center incuding a chest X-ray and blood test. After passing the medical test, you can apply for your Emirates ID.
Present your passport to the immigration authority in Dubai for final stamping, so you can activate your free zone visa that’s valid for 3 years.

In most cases, it will take 15 days for you to receive an entry permit while the process of applying for a free zone visa will take you two to three weeks.

Once everything is complete, you just need to wait for at least a week to receive your free zone visa after submitting your medical test results.

Dubai Visa or Free Zone Visa: Which Is Right for You?

There are many differences between a Dubai visa and free zone visa, but there are also benefits that you can get from both.

The decision to choose a Dubai visa or a free zone visa will depend on what your goals are for your business in the long run.

A Dubai investor visa can give you benefits such as longer validity and the chance to bring in dependents in the city as part of your business.

A free zone visa, on the other hand, may have a shorter validity, but being in a free zone area has many benefits for your business.

At the end of the day, it’s all about making the right choice based on what your needs and goals are for establishing or expanding your business in Dubai.