Compare Dubai CommerCity and UAQ Free Trade Zone for General Trading & Import/Export setup. Side-by-side comparison of fees, processing times, substance, and bank approval.
Dubai CommerCity vs UAQ Free Trade Zone for General Trading & Import/Export: Dubai CommerCity starts at AED 28,945 (88% bank approval) and UAQ Free Trade Zone at AED 5,500 (82%). On Year-1 cost, UAQ Free Trade Zone is the lower-priced option.
| Jurisdiction | Baseline Gov Fee | Processing Speed | Banking | Suited For |
|---|---|---|---|---|
| AED 28,945 | 2-4 days | Moderate | Dedicated e-commerce free zone with fulfillment infrastructure | |
| AED 5,500 | 1-3 days | Moderate | Low-cost free zone in UAE with minimal setup requirements |
Dedicated e-commerce free zone with fulfillment infrastructure
General trading is one of the most popular free zone activities and allows import, export, and distribution of a wide range of goods. Certain restricted items such as pharmaceuticals, weapons, and food products require additional approvals from relevant UAE federal authorities. The trade license must list the specific commodity groups the business intends to trade.
General trading qualifies for the 0% free zone rate on qualifying income, provided the goods are not sold to the UAE mainland without appropriate customs clearance. VAT at 5% applies to domestic supplies; re-exports from designated zones are zero-rated.
Trading companies should expect thorough KYC checks, especially for cross-border transactions. Letters of credit and trade finance facilities require established banking relationships. Banks will request trade references and may ask for evidence of existing supplier or buyer contracts.
Dubai CommerCity's general trading licence is structured for online-first import-export businesses, with the zone's on-site warehousing and last-mile delivery partnerships reducing the gap between trade licence issuance and first shipment to under two weeks. A dual licence pathway with Dubai DED extends selling rights to the UAE mainland.
2021: Dh1 billion expansion investment announced for additional offices and warehouses
2022-2023: Phase 1 opened with Business and Logistics clusters
Early 2024: Social Cluster launched (retail and food hub)
2025: Focus on partnering with e-commerce accelerators and global marketplaces
Company setup in Dubai CommerCity starts from AED 28,945 per year.
Dubai CommerCity processes company registrations in 2-4 working days.
Bank account approval probability is 88%. Banking difficulty is rated Moderate.
Most UAE free zones including Dubai CommerCity allow remote company incorporation. Bank account opening may require an in-person visit.
Dubai CommerCity does not require paid-up share capital for most standard license types. Share capital is notional.
UAQ Free Trade Zone wins on 3 of 4 dimensions. We recommend UAQ Free Trade Zone for cost-conscious founders and Dubai CommerCity if dedicated e-commerce free zone with fulfillment infrastructure.
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