ADGM
vs JAFZA.
ADGM and JAFZA are both UAE free zones offering 100% foreign ownership, 0% corporate tax on qualifying income (QFZP) and full repatriation of capital. The choice comes down to cost, office requirement, banking acceptance and activity flexibility. ADGM all-in from USD 29,500 (year 1), licence issued in 14-28 (commercial); 120-365 (FSRA-regulated) days; JAFZA all-in from USD 30,000 (year 1), licence issued in 21-35 days. Below is the line-by-line view, plus the questions UAE-resident founders most often ask before choosing.
ADGM vs JAFZA, line by line.
| Attribute | ADGM | JAFZA |
|---|---|---|
| All-in year 1 | USD 29,500 | USD 30,000 |
| All-in year 2 | USD 29,300 | USD 22,000 |
| Time to licence (working days) | 14-28 (commercial); 120-365 (FSRA-regulated) | 21-35 |
| Foreign ownership | 100% | 100% |
| Tax — qualifying / corporate | 0% qualifying / 9% above AED 375k | 0% qualifying / 9% above AED 375k |
| Physical office required | Yes | Yes |
| Annual audit required | Yes | Yes |
| Legal system | English common law (ADGM applies ~50 UK statutes) | UAE civil law (federal) |
| Regulator | Abu Dhabi Global Market (FSRA + ADGM Courts) | Jebel Ali Free Zone Authority |
| UAE double-tax treaty | n/a (UAE) | n/a (UAE) |
| Resident director required | No | No |
All figures are year-one all-in for a single-shareholder, single-activity engagement unless noted. Pricing current as of May 2026.
Pick ADGM when —
- Vc-backed startups
- Holding companies
- Fund vehicles
- Adgm foundations
- You want lowest-cost option (all-in from USD 29,500)
- You need fastest licence issuance (14-28 (commercial); 120-365 (FSRA-regulated) working days)
Pick JAFZA when —
- Logistics
- Manufacturing
- Warehousing
- Dubai freehold property holding via jafza offshore
- You want lowest-cost option (all-in from USD 30,000)
- You need fastest licence issuance (21-35 working days)
Common questions on ADGM vs JAFZA.
The questions UAE-resident founders most often ask before choosing between ADGM and JAFZA. Each answer is current to 2026.
Which is cheaper — ADGM or JAFZA?
ADGM is cheaper in year one. ADGM all-in from USD 29,500; JAFZA all-in from USD 30,000. The roughly USD 500 gap is driven by government fees and (in UAE free-zone cases) office-lease requirements.
Which is faster to set up — ADGM or JAFZA?
ADGM typically issues a licence in 14-28 (commercial); 120-365 (FSRA-regulated) working days; JAFZA in 21-35 working days. Both are dependent on KYC clearance speed — submit complete documentation on day one to hit the lower end of either range.
What is the tax difference between ADGM and JAFZA?
ADGM: 0% qualifying / 9% above AED 375k. JAFZA: 0% qualifying / 9% above AED 375k. Both UAE free zones share the same federal 9% rate above AED 375,000 for non-qualifying income.
Can a foreigner own 100% of a ADGM or JAFZA company?
Yes for both. ADGM: 100% foreign ownership. JAFZA: 100% foreign ownership. No UAE national partner or sponsor required.
Do ADGM and JAFZA require a physical office?
Yes — both require a physical office or warehouse lease within the respective free zone or onshore jurisdiction. Flexi-desk options are available at lower cost and satisfy the requirement for standard licences.
Which has easier UAE bank account opening — ADGM or JAFZA?
Both are bankable in the UAE. DMCC and DIFC entities tend to clear KYC fastest (3–6 weeks); IFZA, Meydan and offshore profiles take 4–8 weeks with more questions on flexi-desk-only setups. ArxSetup introduces UAE-resident clients to Mashreq Neo Biz, WIO, Emirates NBD and RAKBANK.
Which is better for my use case — ADGM or JAFZA?
ADGM suits VC-backed startups, holding companies, fund vehicles. JAFZA suits logistics, manufacturing, warehousing. The right answer depends on customer location, banking needs, tax position and operating substance — book a structuring call for a written recommendation.
ADGM or JAFZA? A written answer.
We can produce a structured comparison memo for your specific facts — customer geography, banking needs, tax position, substance — and recommend a jurisdiction with reasoning, in writing.