International Humanitarian City (IHC) vs UAQ FTZ — UAE Free Zone Comparison 2026
Deciding between International Humanitarian City (IHC) and UAQ FTZ for your UAE company? This side-by-side comparison breaks down costs, visa quotas, setup time, and banking ease so you can make an informed decision.
Quick Verdict
- Cheapest year 1: International Humanitarian City (IHC) (AED 11,250)
- Fastest setup: UAQ FTZ (10 business days)
- Easiest banking: UAQ FTZ
- Best 3-year value: International Humanitarian City (IHC) (saves AED 4,750)
International Humanitarian City (IHC) vs UAQ FTZ — Full Comparison Table
| Factor | International Humanitarian City (IHC) | UAQ FTZ |
|---|---|---|
| Year 1 Licence Cost | AED 11,250 | AED 13,000 |
| Annual Renewal Cost | AED 9,500 | AED 11,000 |
| Visa Cost (per visa) | AED 3,200 | AED 3,200 |
| Visa Quota (base) | 1 | 1 |
| Setup Time | 14 days | 10 days |
| Banking Ease | Challenging | Challenging |
| 3-Year Total (1 visa) | AED 33,450 | AED 38,200 |
When to Choose International Humanitarian City (IHC)
International Humanitarian City (IHC) is the stronger choice if you prioritise lower upfront costs — AED 1,750 cheaper in year 1. It is best suited to entrepreneurs and solo founders looking for an affordable entry point into the UAE.
When to Choose UAQ FTZ
UAQ FTZ wins if faster setup (10 days vs 14) is your priority. It suits businesses whose primary clients are international and who can work around the longer bank account opening process.
3-Year Cost Deep Dive
Year 1 costs include the licence fee and first visa. Years 2 and 3 use the renewal rate. Over 3 years with 1 visa:
- International Humanitarian City (IHC): AED 33,450 (Year 1: 11,250 + Year 2: 9,500 + Year 3: 9,500 + Visa: 3,200)
- UAQ FTZ: AED 38,200 (Year 1: 13,000 + Year 2: 11,000 + Year 3: 11,000 + Visa: 3,200)
International Humanitarian City (IHC) saves AED 4,750 over 3 years. For multiple visas, multiply the visa cost by the number of people you need to sponsor.
Frequently Asked Questions
Can I operate from both International Humanitarian City (IHC) and UAQ FTZ simultaneously?
You can set up separate companies in both zones simultaneously, which some business groups do for different activities or for liability separation. However, each company has its own licence fees and visa costs. Most solo founders and small teams are better served by choosing one zone.
Which zone is better if I need to open a UAE bank account quickly?
UAQ FTZ has a lower banking difficulty score, meaning it is generally easier to open a UAE business bank account as a licensee of this zone. For the fastest bank account opening, also consider using Wio Business or Mashreq Neo Biz, which have lower barriers for new free zone companies.
Is the setup process significantly different between the two zones?
Yes — UAQ FTZ is notably faster at 10 business days vs 14 days. If speed is a priority (e.g., you need to start invoicing clients quickly), factor this into your decision.
Compare more options: See all 50+ UAE free zones → | Take the Zone Finder Quiz →