IHC vs RAKIA: Which UAE Free Zone Should You Choose?
Choosing between IHC and RAKIA? This data-driven comparison covers licence costs, setup speed, banking, visa quotas, and 3-year total cost to help you decide.
- 💰 Cheaper Year 1: IHC (AED 11,250 vs AED 18,500)
- ⚡ Faster Setup: RAKIA (10 days vs 14 days)
- 🏦 Easier Banking: RAKIA
- 💼 Best 3-Year Value: IHC (saves AED 18,550 over 3 years)
Cost Comparison: IHC vs RAKIA
| Cost Item | IHC | RAKIA |
|---|---|---|
| Year 1 Licence | AED 11,250 | AED 18,500 |
| Annual Renewal | AED 9,500 | AED 15,000 |
| Visa Quota (Base Package) | 1 visa(s) | 1 visa(s) |
| Investor Visa Cost | AED 3,200 | AED 3,500 |
| Setup Time | 14 days | 10 days |
| Banking Ease | 🔴 Challenging | ⚠️ Moderate |
| 3-Year Total (Licence + 1 Visa) | AED 33,450 | AED 52,000 |
When to Choose IHC
- ✅ You want a lower Year 1 cost (saves AED 7,250)
- ✅ You have existing relationships or activity-specific reasons for this zone
When to Choose RAKIA
- ✅ You need faster setup (10 days vs 14 days)
- ✅ You prioritise easier bank account opening
- ✅ Your specific business activity is better supported here
Bottom Line
IHC wins on 3-year total cost by AED 18,550. However, cost is just one factor — also consider your specific business activity, whether you need UAE banking access quickly, and how many visas you’ll need in year 1. Use our cost calculator to model your exact scenario.
Frequently Asked Questions
Can I switch from IHC to RAKIA later?
Yes — you can close one free zone company and open another in a different zone. However, this involves dissolving the first company, which can take 1–3 months and incur additional costs. It’s better to choose the right zone from the start using our Zone Finder Quiz.
Do both zones offer flexi-desk/virtual office?
Most UAE free zones offer flexi-desk packages (shared workspace address) as their entry-level option. Virtual office (address only, no physical access) is available at some zones. Confirm the exact package options directly with each zone before signing up.
Which zone is better for UAE bank account opening?
RAKIA has a lower banking difficulty score, suggesting a more straightforward account opening process. However, individual outcomes vary — nationality, business activity, and source-of-funds documentation all affect bank approval rates.
Explore More Comparisons
- Browse all UAE free zone comparison pages
- Mega comparison table — all zones filterable
- IHC full profile
- RAKIA full profile